Transactions is a key KPI in your sales breakdown. Understanding why it rose or fell compared to a prior period is essential.
Transactions = Traffic × Conversion
Transactions is calculated by multiplying Traffic by Conversion. Whether it rises or falls compared to a prior period depends on how these two KPIs move.
There are three ways this can happen:
Both Traffic and Conversion increase
If both increase compared to the prior period, Transactions increases too.
Traffic increases enough to offset a drop in Conversion
Even though Conversion falls, the gain in Traffic makes up for it, so Transactions still increases.
Conversion increases enough to offset a drop in Traffic
Even though Traffic falls, the gain in Conversion makes up for it, so Transactions still increases.
There are three ways this can happen too:
Both Traffic and Conversion decrease
If both decrease compared to the prior period, Transactions decreases too.
Traffic increases, but not enough to offset a drop in Conversion
The gain in Traffic can't make up for the decline in Conversion, so Transactions decreases.
Conversion increases, but not enough to offset a drop in Traffic
The gain in Conversion can't make up for the decline in Traffic, so Transactions decreases.
Understanding why Transactions rises or falls — one of the core KPIs behind your sales — helps you manage your store more effectively.
