POS/Traffic Counting systems
SWS Cabling has the ability to install POS/Traffic Counting systems in large and small size business. The following is a little information to aid you in understanding how a POS/Traffic Counting system can aid your business.
Today, point-of-sale solutions offer a great way to monitor sales transactions, as well as manage other aspects of a retail business. However, many solutions lack the capacity to provide information on retailers’ sales opportunity in terms of in-store traffic. By measuring in-store traffic data, retailers can monitor purchasing conversion rates and enact operational adjustments to help make the business more profitable.
According to retail consultant and technology experts, large chain retailers have taken advantage of monitoring technologies such as infrared or camera traffic counting systems for years. Small retailers, though, have yet to catch on to the benefits of traffic counting systems and analytics. This can be attributed to the fact that traffic monitoring systems require another hardware and software investment that many retailers simply can’t afford.
As it stands now, most POS solutions and in-store traffic monitoring systems are sold individually. And though many POS software solutions such as Retail Pro and Microsoft Dynamics RMS can accept data from most traffic counting systems, small retailers can benefit from having counting hardware and a simple, dedicated analytics module included with their POS systems. By including in-store analytics monitoring within POS solutions, it would increase the likelihood of smaller retailers adopting and utilizing these collection systems and metrics.
The Power of Retail Conversion Rates
By integrating both traffic collection data and transactional sales data within the POS solution, retailers would gain greater visibility into their stores’ conversion rates – or the rate at which store customers make an in-store purchase. Retailers could then use these metrics to gain better knowledge of the customers entering the store. With this insight, retailers would have better information at their disposal to make decisions on how to improve conversion rates, streamline operations and boost profits.
According to Mark Ryski, retail traffic analytics expert and President of HeadCount, many retailers are primarily focused on sales transactions when evaluating their businesses. But Ryski explained that there’s also enormous value in focusing on conversion data when looking to grow and increase profitability. Ryski’s latest book, “Conversion: The Last Great Retail Metric”, dives deeper into how to use traffic and conversion data to find missing sales opportunities – along with identifying marketing programs that bring in the highest-converting customers.
Many retailers understand the theoretical importance of conversion rates, but as Paco Underhill describes in Why We Buy, they often overestimate their own rates. By aligning traffic counting with sales numbers within the POS solution, retailers could monitor their conversion rates and gain a more accurate view of how well they are leveraging their retail opportunity.
Four Benefits of Retail Traffic Analytics
To the technology-wary independent retailer, integrated traffic analytics would help them gain a “bird’s-eye view” of the business – indicating where the true sales opportunities are. It’s this type of information that can ultimately help retailers improve scheduling, operational efficiency and profitability. By integrating a traffic analytics module into the POS, retailers could improve their conversion rates and sales revenue in the following ways:
- Measuring marketing efforts – Retailers often spend a lot of time and money on both in-house marketing efforts and third-party advertising groups, such as Groupon and Living Social. A retail traffic module could show how marketing spend results in traffic changes, as well as how well those customers convert and make a purchase. This would allow retailers to focus their marketing and invest more into campaigns that not only bring in the most traffic, but traffic that converts.
- Optimizing store hours – Store hours are always a hot topic, especially now that we’re entering the holiday season. But what effect does changing store hours have on the actual store traffic? Retailers can use traffic data to measure whether longer hours translate into simply “stretching” the flow of customers – or if longer store hours yield increased revenue. Retailers can get even more granular and investigate how traffic flow and conversion rates are affected by changes in hours.
- Aligning staffing to traffic – For many small retailers, staff schedules are assigned according to employees’ availability and haphazardly-created shifts. One of the best ways for retailers to improve revenue is to align employee schedules to the ebb and flow of store traffic. Retailers can improve conversion rates by using customers-per-staff-hour numbers to find the perfect ratio of sales employees to customers.
- Visibility of traffic flow trends – Because retail business is highly seasonal and fluctuates on a daily, weekly and monthly basis, insight into the flow of traffic can help retailers learn more about both the short-term and long-term success of their stores. For example, if traffic flow and conversion rates dip every Wednesday evening for 12 weeks straight, retailers can investigate (maybe they’ll find a competitor running a promotion that evening each week). Additionally, retailers can collect data to holistically compare season over season and year over year trends.
Looking ahead, it’s clear more retailers could benefit from completing this type of analysis, and an integrated POS module would greatly help independent retailers. Do you think small retailers would benefit from an integrated traffic analytics module? I’d like to hear from retailers, developers or other analysts on their thoughts on traffic analytics.
Increased sales rely on the information gather from this type of analysis. Obtaining this information will have a positive effect on your sales. Don’t hesitate, time is money. Contact SWS Cabling so that we can get your POS/Traffic Counting systems installed today.