Why do so many companies rely on customer counting? First and foremost, a customer counting system provides the daily number of visitors in the store. From this, key figures such as branch performance, peak times and conversion rates can be derived. Only those who know and understand this precise information can align their corporate strategy and thus increase their sales in a targeted manner in the long term.
Benefits of counting customers
Customer counting gives you the advantage of being able to confirm or refute observations and assumptions with concrete figures. A customer counting system automatically records visitors at certain points on an area: at the entrances and exits, within separate business areas and on floors. Retail trade, shopping centers, museums, banks, libraries, libraries, exhibition halls - you can determine the number of people in your localities at any time thanks to the automated measurement, even with a high number of visitors.
You can do simple controlling with a simple customer count without analyzing personal behavior. In the case of chain stores, for example, it is important that the data from all shops come together at a central point. Comparative analyzes of the passage of time allow trends and patterns to be identified. The clear presentation of the customer counting data also clearly shows optimization potential. If the actual peak visitor times deviate from the assumption, the deployment plan can be adjusted accordingly by service and logistics employees.
The comparison of these findings with in-house reports, merchandise management systems, personnel deployment plans, daily, weekly and monthly accounts as well as cash register data enables effective shop controlling. This is a prerequisite for a targeted increase in efficiency and sales.
Types of customer counting systems
Systems for customer counting with light and laser barriers as well as infrared systems are common on the market. All technologies are insensitive to poor lighting conditions. Depending on the complexity of the selected installation, data from one or more sources are combined to count customers. Depending on the system, the data is evaluated by simply reading it, downloading it using a USB stick and conveniently via Ethernet.
The latest generations are working with us Top view. From a bird's eye view, the flow of visitors and walking directions can be seen in the best possible way. They are particularly suitable for use with large gatherings of people. By combining several meters, different zones can be covered and, thanks to the integrated radio modules, the data can even be read out without a network connection.
In a web-based environment, the system data from Top View can be easily accessed and visually prepared as statistics. Nothing stands in the way of the export in various formats for further comprehensive processing of the key figures.
Detailed collection and analysis of data
What the number of clicks and website visitors say in online shops can be determined in stationary shops by counting customers. Elementary data include the number of visitors over specified periods of time. The customer count provides all the necessary statistics about the visitor distribution - in the daily routine, over days of the week and months. The analysis of the results from the customer count provides information about changes. For example, the performance of the current quarter can be compared with the quarter of the previous year. A comparison of shops in the same chain at different locations or with the shop with the highest turnover provides information about the individual branch performance.
Analysis of the conversion rate through customer counting
If the customer counting system measures the number of people entering and leaving a shop, the average length of stay can be calculated. The bidirectional measurement recognizes the direction of movement of the visitors in just one pass. Running studies within the areas provide information about personal behavior when shopping and visiting a locality.
The conversion rate is one of the most important metrics in retail. It is usually between 25 and 60 percent. The conversion rate describes the ratio between visitors and customers with actual purchases. Customer counting systems provide the number of visitors, cash register systems the amount of purchases or receipts. As the conversion rate increases, so does operational efficiency and revenue. If the management only has cash register data, they cannot objectively assess the performance of a business.
In large shopping malls and shops, the key figures z. B. determine the optimal number of open registers. It results from the number of visitors, the average length of stay, the expected conversion rate and the checkout throughput.
Good control can prevent long queues with unacceptable waiting times and abandoned purchases by impatient people.
Measures to improve performance
By evaluating the data from a customer counting system, the effectiveness of marketing measures can be assessed within defined periods of time. Delimited to regions, target groups and advertising material, detailed statements can be made. An evaluation of flyer advertising, social media marketing as well as TV and radio spots is possible. If bargains are advertised, the duration of the advertising effectiveness is usually limited to the specified discount campaign. Events in the vicinity of the location, weather influences and seasonal fluctuations are to be included in the evaluation of the data. They have a positive or negative influence on visitor frequency.
By counting customers, conclusions can be drawn about when there is a high number of visitors and how this affects the decisive conversion rate. Low sales can be the consequence of a brief overload of the sales staff. Customers leave the store without making a purchase. Increasing the number of employees at peak times brings success. In large shops with different departments, the personnel planning can be individually adapted to the expected visitor frequency for each area. Individual employees differ in their skills. Using top salespeople during busy business hours can also increase sales.
The customer count provides information about the branch performance. If the range of goods and the product presentation differ in the shops, the customer count provides information about a necessary adjustment. The analysis of personal behavior within a shop provides analogous insights, ie in which product range areas and which type of product presentation visitors stay for a long time.
Isolated implementation of the measures
Increasing the performance of a shop is a continuous process. The collection of data from the customer count and the stay analysis provide detailed information about the contribution to success of individual changes. In doing so, isolated factors can be adjusted step by step over a specified period in order to check their effect. It makes sense to proceed slowly, as the effects of the individual measures overlap.
Examples of adjustments are a higher investment of the advertising budget in digital platforms and a changed customer approach. New shop opening times and renovations can make a branch more attractive. A streamlining of the range of goods and a more attractive product presentation ensure greater clarity. Displays attract attention. Employee training and adapted deployment planning increase the efficiency of the sales force.
Targeted controlling of individual factors
If there are several branches with an identical range and similar location factors, it is possible to create comparison panels. While structural changes are made in the business processes in a panel, they remain unchanged in the comparison panel. Effects can be objectively assessed by counting customers in combination with reports and business figures. The best key figure is the development of the conversion rate of a branch. If no comparative panels are possible, comparative figures for the previous year and previous month's periods provide informative insights into the effectiveness of measures. The developments can be visualized in graphics.
An example: The management decides to extend shop opening times by two hours in the evening and open one hour later in the morning. The aim is to increase the number of visitors. Instead of 9:00 a.m. to 18:00 p.m., the new business hours are 10:00 a.m. to 20:00 p.m. The evaluation of the customer count over a longer period of time brings clarity. It shows that the number of visitors has not increased on the individual days. Some of the traffic has shifted into the evening hours. A check of the conversion rate and sales shows whether after-work shoppers are more willing to buy.
The reach of displays and shelves provides information about profitability and its influence on sales. The System for customer counting takes into account all people who consciously pay attention to the displays. It counts all people who linger face forward in front of the advertising material.
By constantly adapting measures, valuable insights can be gained over time. The most important influencing factors on conversion rates and sales become clear. The optimal use of the marketing budget and good personnel planning bring higher earnings. If the business processes within each individual shop are optimal, employee and customer satisfaction increases. Repeat purchases and valuable recommendations are the result. The performance of a business or all branches can be optimized. New openings generate high sales within a short period of time through the consistent implementation of best practices.
Customer counting creates clear competitive advantages
Customer counting is one of the foundations for healthy, organic growth of your company on your own. It is not possible to obtain an exact picture of the performance of a shop on the basis of pure sales figures and cash register data. The regular evaluation of data from customer counting systems and a detailed analysis of all key figures provide information about the actual business performance. They are essential for deriving effective improvement measures, for a sustainable increase in conversion rates and sales.
Anyone who, as owner and managing director, invests early in a high-quality system for customer counting creates clear competitive advantages. Benefit from the experience and our expertise at Telsec ESS Switzerland AG. Equip your business premises with one of our functional and high-quality systems for customer counting. We would be happy to advise you all in one personal conversation about the possibilities.
