The following is a guest blog written by Mark Ryski. Ryski is the founder and CEO of HeadCount, an analytics firm specializing in store traffic and conversion, serving retailers across North America. He is also the author of Conversion: The Last Great Retail Metric. For more information, visit www.headcount.com.
Same-store sales are looking a little flat and retailers need to find ways to deliver better results. There’s still a scent of the financial melt-down lingering, but you have survived that crisis and it’s time to start getting the sales needle to move in a positive direction.
There are three main ways to drive sales in stores: (1) encourage more prospective buyers to visit your store; (2) increase your average ticket; and (3) increase your conversion rate — that is, sell to more of the prospects already visiting your stores, but don’t buy.
To a great extent, retail sales have been a two-trick pony: drive more prospective traffic and increase the average ticket. Driving more prospects into your stores usually requires an advertising or promotional investment of some kind, and many retailers focus on increasing the average ticket. But what about conversion rate? It is a third trick every retailer needs to learn, and another sales opportunity that most retailers today completely overlook.