Transactions is the number of times a customer completed a purchase in the store — synonymous with the number of purchasing customers.
Transactions is made up of two KPIs:
Traffic — the number of customers who visited the store
Conversion — the percentage of visiting customers who went on to purchase
In other words, Transactions is the number of visiting customers who purchased, at a given rate.
Formula: Transactions = Traffic × Conversion
Transactions is one of the KPIs most closely tied to Sales. Sales is made up of Transactions and Average Purchase — together, these two indicators determine whether Sales rises or falls. If Transactions increases, Sales will increase as long as Average Purchase stays the same or improves. If Transactions decreases, Sales may still fall even if Average Purchase increases. Understanding what’s driving Transactions up or down is a direct way to understand what’s driving Sales — use the data to assess your store’s current status.
