Since the number of customers is an important indicator of KPIs that makeup sales, it is very important to understand why they increase (or decrease) compared to the comparison period.
Transactions consist of two KPIs: [Traffic] and [Conversion].
The increase or decrease in the number of purchasers (transactions) will be determined by the movement of these two KPIs.
The number of purchasers can be calculated by multiplying the figures for traffic with a conversion.
After comparing with the comparison period, the factors that increase or decrease the number of customers purchasing will vary depending on the movement of Traffic and Conversion themselves.
The pattern when the number of purchasers increases are divided into 3:
(1) Both Traffic and Conversion increase
If the number of customers visiting the store and the purchase rate both increase compared to the selection period, the number of customers purchasing will also increase.
(2) Increase in Traffic and decrease in Conversion
In this case, although the Conversion rate decreases, an increase in Traffic brings in more purchasers. An increase in Traffic compensates for the decrease in Conversion.
(3) Decrease in Traffic and Increase in Conversion
In this case, although there is a decrease in Traffic the number of purchasers increases because along with the increase in Conversion. An increase in Conversion compensates for the decrease of Traffic.
The pattern when the number of purchasers decreases are divided into 3:
(1) Both Traffic and Conversion decrease
If both Traffic and Conversion rates decrease compared to the selection period, the number of customers purchasing will decrease.
(2) Increase in Traffic but a decrease in Conversion
Although there's an increase in traffic, the number of purchasers may decrease because there's a decline in Conversion. A decline in Conversion can not make up for more customers, resulting in a pattern in which the number of purchase customers decreases.
(3) Decrease in Traffic but increase in Conversion
Although there's an increase in Conversion, the number of purchasers may decrease due to a decrease in Traffic. A decline in Traffic can not make up for more customers, resulting in a pattern in which the number of purchase customers decreases.
By keeping all of these in mind (which are the KPIs that make up sales for example), better store management can be done to increase the number of purchasers.
