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People Counting

People counting is used in retail industry to gather useful info and insight on customer behaviour and location performance. This data can then be used to improve business planning and forecasts, to enhance profit and sales, thru better customer experience and improved efficiencies.

A typical question we always ask our customer is how do you know which of your store is the best performing store?

Referring to the following table A (a chain store which sells expensive grocery), one would give a typical answer that Store A is the best performing store because the sales of Store A is the highest. Table A is shown without traffic data.

Store Number of transactions Sales
Store A 600 620,000
Store B 210 205,000
Store C 120 125,000
Store D 580 510,000

By implementing people counting system, additional data is gathered as shown in Table B below.

Store Number of transactions Sales Traffic Conversation Rate
Store A 600 620,000 4,710 12.7%
Store B 210 205,000 820 25.6%
Store C 120 125,000 480 25.0%
Store D 580 510,000 1,950 29.7%
Average 377.5 385,000 1,675 23.3

Table B April 2014

From the table B above, we see that Store A is actually the store with the lowest conversion rate (17.4%). The fact that Store A generate the highest sales is not due to the highly efficient staff, but rather due to Store A has the highest traffic.

Store A is located in an expensive high traffic mall and thus attracted the highest traffic to its store. However, Store D has the best conversion rate. This can be attributed to Store D's management and staff performance is better than other stores.

From the table B above, one can conclude:

1) Store A has the lowest conversion rate (12.7%), which is far below the average of 23.3%

2) Store D has the highest conversion rate at 29.7%

3) Average conversion rate of the chain stores is 23.3%

4) Store C has the lowest traffic

Thus, with the additional traffic data, now we can have an added advantage of analzing store performance in a more sensible and systematic ways. Eventually, Store A staffs are being send for retraining and some staffs from Store D being relocated to Store A.

On further investigating the case above, our customer installed attraction rate sensors to further monitor their store performance.

Store Traffic Attraction Count Attraction Rate
Store A 3,350 34,500 9.7%
Store B 810 9,500 8.5%
Store C 510 10,200 5%
Store D 2,030 19,500 10.4%
Average 1,675 18,425 8.4%

Table C May 2014

From Table C above, it shows that Store C actually has quite a high attraction count but the attraction rate is only 5% (which is almost half the average attraction rate). Something might went wrong to Store C. An investigation on Store C found that the layout of Store C is very different from other stores and there are unwanted obstacles at the entrance which down grade the high class renovation look and feel of Store C.

Now you can see from the above scenario that how important people counting is for your store, moreover, we have not illustrated how traffic data can use for you to optimize your marketing campaign, staff allocation and staff management. Call us to know more, no obligations.

Once you start using people counting, you cannot manage your stores without people counting anymore!