The following is an introduction to the meaning and composition of the term "number of purchases," an indicator closely related to sales.
What is the number of purchases?
The number of purchases is the number of times a customer's money is exchanged for a product in a store. It is synonymous with the number of purchasing customers and transactions.
Factors that make up the number of purchases
The number of purchases is made up of the following two KPIs
(1) The number of customers who visited the store (= number of customers visiting the store)
(2) The percentage of customers who purchased out of the number of customers who visited the store (= purchase rate)
In other words, the number of purchases can be expressed as "the number of customers who exchanged money for products at a certain rate among the customers who visited the store".
Indicators that the number of purchases influences
An increase or decrease in the number of purchases is one of the KPIs closely related to "sales".
The above slide shows the flow of each KPI leading to sales.
Sales are composed of "number of purchases" and "sales per customer," and these two indicators are important indicators that determine the increase or decrease.
If the number of purchases increases, sales will increase if the price per customer increases or remains the same.
On the other hand, if the number of purchases decreases, sales may decrease even if the price per customer increases.
In this way, the number of purchases is closely related to the KPIs that makeup sales.
Make sure you understand the indicators that influence the number of purchases and use the data to understand the current status of your store.