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Customer entry measurement in retail stores

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Customer Entry

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Once upon a time, there were two stores in two cities – A & B

The two store managers, Floyd and Bharat, were intelligent
...

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While the customer entry in Store A was low, the conversion
was very high.

Floyd was given a pat on his back, while the H...

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Customer entry measurement in retail stores

Customer entry is one of the more ignored topics in the retail industry. This is probably because the heads of the organistations are merchandise focused and therefore they work on merchandise for all the improvements.

The store managers are responsible for operations and therefore they have a vested interest in showing lower entry.

however, if you do not know the real customer entry of your store and the profile of the customers coming to your stores, you cannot take any corrective action either.

This presentation has come out of my real life experience in retail.

Customer entry is one of the more ignored topics in the retail industry. This is probably because the heads of the organistations are merchandise focused and therefore they work on merchandise for all the improvements.

The store managers are responsible for operations and therefore they have a vested interest in showing lower entry.

however, if you do not know the real customer entry of your store and the profile of the customers coming to your stores, you cannot take any corrective action either.

This presentation has come out of my real life experience in retail.

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Customer entry measurement in retail stores

  1. 1. Customer Entry
  2. 2. Once upon a time, there were two stores in two cities – A & B The two store managers, Floyd and Bharat, were intelligent and sharp people who helped business grow better until the management noticed something…. Store A Store B Manager : Floyd Manager: Bharat
  3. 3. While the customer entry in Store A was low, the conversion was very high. Floyd was given a pat on his back, while the HO and Marketing Team wondered how to increase awareness and customer entry in the city. Let’s Spend more on How do Advertisements we and Awareness Increase CE? Conversion 56%  CE 200/Day 
  4. 4. They tried all the possible methods of Increasing CE and spent a handsome amount of money on advertisement and awareness…but to no avail! NO CLUE !!! Why doesn’t the CE Increase?
  5. 5. In Store B, the case was Conversio n : 14%  opposite. While the CE : Customer Entry was high, 450/Day  the conversion for the store was somehow low in comparison to We’ll see to We’ll it that your other stores. Conversion have to work very Increases hard! Bharat was called for a meeting with the HO, where they discussed the steps to be taken for increasing customer conversion.
  6. 6. Many steps like allocation of merchandize on a regular basis, product Steps to be taken: training for staff and In 1) Merchandize Allocation store promotions were organized to curb this 2) Product Training problem. 3) In Store Promotions
  7. 7. Store B After six months of this exercise, Store B emerged as a clear winner and achieved 120% of its ABP
  8. 8. Store A was still struggling with less customers, while Marketing Dept. Spent a huge amount of money for driving customers in to the store…Every one wondered what to do, until the management noticed the clue… Store A
  9. 9. Floyd was not using the We need to correct way to measure check the Customer Entry!!! method Improving CE He was counting Group Entry as one, and thus, the customer entry was recorded Is CE Really low, even when it was not as low? low.
  10. 10. Recording Correct CE is one of the Management immediately most took corrective actions to important That aspects of increase the conversion business it is!!! and now, Both Bharat and Floyd are performing well and competing hard with each other…
  11. 11. Why do we need to record accurate Customer Entry? • Correct Market Awareness Leading to Optimum Expense in Advertising • Root of the problem is known • Corrective actions for actual problems are taken on time
  12. 12. Correct Ways to Measure CE
  13. 13. Each person walking into the store on their feet will be counted . – This to clarify that each individual who walks into the store man / woman or child will be counted as a customer if the person walks into the store on his legs. 2 4 8 6 5 1 3 7 X
  14. 14. Each entrance to the store will be mapped independently- Some stores have multiple entrances , some of which may have lower customer flow . However it is important to independently man the same and count customer entry independently for the same. Entrance 1 Entrance 2 1 2 1 2
  15. 15. Even if the customer is entering the store for any purpose other than shopping (mall entry etc.), he/she should be counted I’m only using this 2 Store staircase I’ll go for for going this to the mall movie through this store 4 1 3
  16. 16. I Have to Count The security person all the standing at that particular customers entering into the entrance will map the store customer entry for the entry – This is a dedicated person who will be standing right at the door, greeting customers and clicking the entry. All the time, his attention should not divert from the entrance
  17. 17. Records will be maintained hour wise / entrance wise – Each security person manning CE Record the entrance will record Entrance 1: Hour 1 his tally at the end of Hour 2 - each hour . Total Entrance 2: Hour 1 Hour 2 - This hourly compilation Total records will be maintained by the store for understanding, analysis and audit.
  18. 18. Remember….No assumptions should be made!
  19. 19. Thank You

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