conversion rate optimization in physical retail

OMNI-CHANNEL RETAIL SOLUTIONS

Conversion Rate Optimization in Physical Retail


Optimizing conversion of brick-and-mortar store traffic

. • Like online retailers, brick-and-mortar retailers need to focus more of their efforts on converting the store traffic that they receive.

• In today’s retail environment, no retail business can afford to fritter away their store traffic – it should be treated as a valuable, non-renewable resource.

• Conversion rate optimization (CRO) when effectively applied, can be the difference between delivering positive same-store sales or not.


Physical stores have a higher conversion rate than online

.Conversion rates vary considerably across retail categories, but they also vary significantly within the same chain as a result of variations in store format, geographical location, product mix, inventory levels, and most importantly, store personnel who serve the shoppers. The reality is, each and every brick-and-mortar store is unique and in order to optimize conversion rates, these unique characteristics need to be considered.

Source: http://www.retailwire.com/public/sponsors/headcount/assets/HeadCount-Conversion-Rate-Optimization-2017.pdf


Click & Collect can impact conversion rates

.The store traffic counts went up from 10 to 12 after the implementation of omni-channel retail solutions that enabled Click & Collect. Since three of the 12 traffic counts generated were ‘pre-converted’ i.e., already purchased online and came to the store to pick-up their purchase; they didn’t generate a sales transaction. If we don’t track that Click & Collect transaction and factor it into our conversion rates, then the only thing that we will conclude is that our conversion rates have dropped from 50% to 42% in this example.



Reasons why in-store shoppers didn’t convert

.The most cited reasons why in-store shoppers didn’t purchase are:

• They could not find anyone to help them; and

• They did not want to wait in a queue at check-out.

• They could not find what they were looking for or the preferred item was out-of-stock.



Every year, 50,000 retail associates use ETP to serve 150,000,000 consumers, selling USD

5,000,000,000 of merchandise. More than 300 brands in over 22 countries, across 10 time-

zones, in 200 cities, at 25,000+ stores, in 5 languages run on ETP.

Australia, Bahrain, China, Egypt, Hong Kong & Macau, India, Indonesia, Iraq, Jordan, Kingdom of Saudi Arabia, Kuwait, Malaysia, Oman, Qatar, Singapore, Thailand, The Philippines, Tunisia, U.A.E., Uzbekistan, Vietnam and Yemen

www.etpgroup.com

http://www.etpgroup.com/