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Why use Wi-Fi to count footfall?

Actionable outcomes from Wi-Fi footfall counting

Wi-Fi Footfall Analytics Insights

As you may have seen in our last post The Evolution of People Counting, today’s technology allows retailers to capture ongoing foot traffic data which is an important part of any successful retail business. Point-of-sale (POS) systems give you half of the picture and they don’t tell you anything about potential customer behaviour or numbers. Foot traffic Data can make big difference as it allows you to unlock the the key to customer happiness and loyalty, customer behaviour. Here we will explain, in more detail, what types of actionable conclusions you can come to from understanding foot traffic.

Staffing:
Unlike sales reports or periodic human counting, Wi-Fi footfall counting provides ongoing data. Having ongoing traffic counting establishes a baseline for foot traffic which retailers can then use to understand how both controlled and uncontrollable events affect traffic. Knowing your high and low traffic periods are important for staffing. Looking at external factors such as weather, construction or nearby events may also help you predict staffing needs over long periods of time. Retailers can save hundreds, maybe even thousands of dollars a year by learning how to staff their shops more effectively.
Marketing:
Understanding a foot fall baseline means that retailers can also see trends and anomalies in their data. Understanding how many people come into a building, when they arrive and leave, how they move through the store and which entry or exit they used can help marketers understand what is and isn’t working. Managers can see how a change in store front has affected the conversion of passerby to shoppers and how any other in store promotions are affecting shopper behaviour.
If using geo-targeted ads to advertise a specific store or promotion, marketers can also see changes in their daily, weekly, or monthly data due to campaigns. This is an advanced technique but can prove effective in capturing shoppers and learning about your ads and promotions.
Consistent counting and analysis are key to measuring, not estimating, in-store ROI on marketing.
Conversion Rates:

Until now, most retail conversion has been the number of sales from each store location each day. Some retailers will compare these numbers between specific store locations and some between all store locations.

Now, not retailers can not only see the number of sales vs the number of people who entered the store, but also see the number of people who entered vs the number of people who walked by! To measure retail conversion, one must not only measure the number of visitors but must also understand how to interpret the data. If 300 people visit your store in a day, but only 75 buy, the conversion rate is 25 percent. If 1000 walked by that same day the shop only had a 7.5% conversion rate. The retailer can now analyse sales at a deeper level.
With true conversion rate data, businesses can explain sales spikes and slumps. If sales are down, the conversion rate can show whether it’s because foot traffic has slowed. If traffic hasn’t dropped, the conversion rate may give insights into why your sales have slowed.
Conclusion:

As mentioned previously, you can use the retail conversion rate to assess the effect of other marketing or operational activities. The numbers will help you make an informed decision as to what types of improvement in conversion represents a success for your business. 

Gathering timely traffic data is the cornerstone for critical performance measurements in retail, event spaces and hospitality locations. The data provides the means to consistently check up on labor efficiency and scheduling as well as the effectiveness of promotional tools both inside and outside the store. Make sure you are capturing all the data you can, but more importantly, use the data to achieve positive outcomes.

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You can follow us on twitter at @KeplerAnalytics, call us: 1800 300 892 or email us at: info@kepleranalytics.com.au. At Kepler we believe that privacy is most important. Secondly, understanding your foot traffic and visual merchandising is the start to bridging the gap between the physical and digital. Understanding your customer behaviour can help you understand what types of communications are working. Linking your foot traffic to digital and traditional marketing campaigns will allow you to see how your marketing efforts actually
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