The conversion rate or sales ratio in Retail, as in other trade sectors, is one of the key metrics to optimise the sales process and increase the revenue of physical shops.
Many Retail shop managers are unaware of what it is and how important conversion rates are to the smooth running of their business. Others, however, know what it is, but often do not pay much attention to this data, especially if the company is performing well.
As they say, everything that can be measured, can be improved.
Ladorian wants to prove it to you, so we are going to analyse the 5 essential keys to improve the conversion rate in Retail and, ultimately, sell more.
Ready to optimise this metric? Let’s go there!
Conversion rate: one of the key metrics
First of all, we must know what the conversion rate in Retail is.
It is the mathematical result of two variables: number of visitors / number of buyers. That is, it is the percentage of potential buyers who enter our shop and consume our products and services.
What is your current conversion?
What is the starting point for the conversion of your shop?
In order to accurately optimise your conversion rate, you need to know where you stand. For example, you could analyse all the people who come into your physical shop and divide this by the number of till receipts.
This process will allow you to get an idea of the current situation in your shop and determine the POS marketing strategy to improve and optimise your shop’s conversion rate.
Once again, collecting and analysing data points the way to generate more sales, both qualitatively and quantitatively speaking.
Why don’t customers buy?
It could be that consumers don’t know about your shop, that your business doesn’t enjoy too much visibility… But if your potential customers enter your establishment and end up leaving empty-handed, it is synonymous with a very low in-store conversion rate. But don’t worry, this can be solved!
At this point it will be our job to find out what is going on.
Lack of stock in the most sought-after products? prices too high? low visibility of offers and promotions? tediously long queues? messages that are not relevant and impactful?
We could mention dozens of reasons why your in-store conversion rate is stagnating or even decreasing day by day.
- They do not enter the shop.
- They look and go away
- They try it but are not convinced.
- They abandon the purchase.
Four keys to improving the conversion rate at the point of sale
1. Understand your target audience
Age, gender, interests, tastes, habits… These are some of the characteristics that Ladorian helps you to measure to boost conversions.
How do we achieve this? By using Artificial Intelligence and algorithms that allow us to better understand the behavioural habits of the public at your point of sale.
2. Use the full power of visual merchandising
Visual merchandising is much more than installing advertising displays in a shop window to attract more people. It is about delivering a satisfying experience at a glance. Impacting the right person at the right time.
Your shop must be perfectly designed to boost impulse consumption in the last mile, in this sense from Ladorian we think that broadcasting the right content at the right time is more important than ever.
3. Omni-channelling is the right thing to do
User experience and omnichannel will be the key to success in converting an increasingly informed and hyper-connected consumer.
It is about creating a total shopping experience. It is no longer enough to create a catalogue or a website.
This new reality forces us to contemplate personalised solutions with agile data management, allowing us to provide scalable and intelligent responses to these new needs.
By relying on the use of data, AI, and content management, we can ensure that the shopping experience at the point of sale is sufficiently personalised, showing specific content, in the right place and to the right person, with the aim of encouraging the purchase.
Measuring the customer journey of customers during their stay in the physical shop and, in addition, comparing and relating this same information with the online channel, offers a clear competitive advantage based on the creation of intelligent communication or advertising through digital devices.
4. Real-time personalised marketing campaigns
The integration of Business Intelligence into different business models is now an unavoidable reality. AI-based recommendation technologies collect and analyse data to deliver personalised and tailored advertising in real time.
Knowing the customers who walk through the door of a shop is essential for generating real-time marketing campaigns and increasing sales in retail
In Ladorian’s experience, real-time activation of data-driven messages leads to sales increases of up to 30%.
We improve your conversion rate
A business able to personalise messages through data and customer profiling can create a unique audience impact, reducing advertising saturation and improving the shopping experience.
At Ladorian we are ready to take your business to the next level by leading the digital conversion project. We contribute and help companies in the retail sector to transform and optimise their business through data and AI.