"Retail execs are experimenting with all sorts of initiatives to drive results, but few have connected the dots to pull the ROI they need from their investments."
Brooklyn, NY (PRWEB) March 08, 2016
An exhaustive study of over 600 retail locations demonstrates the value of data-driven coaching in driving net sales productivity in retail stores. As documented in a newly released RetailWire m•Paper™, HeadCount Corporation's store-level test resulted in a net sales productivity gain of 537 basis points for stores that made use of simplified traffic and conversion reporting coupled with field manager coaching.
“Physical stores are on the chopping block," says Al McClain, CEO of RetailWire, the retailing industry's premier online discussion forum. “Store traffic counts are on the wane and retailers are battling with online and mobile channels for the attention of digitally-attuned shoppers. Yes, retail execs are experimenting with all sorts of initiatives to drive results, but few have connected the dots to pull the ROI they need from their investments."
More than ever, as foot traffic softens, retailers need ways to drive revenue increases to justify the very existence of their physical stores. In search of answers, the HeadCount team analyzed data from seven discrete experiments spanning four retail verticals. Using A/B methodology, test stores added coaching and simplified analytics reporting to the regimen. The process was designed to help store and district managers understand how to turn data insights into action.
The results were impressive. Test stores in the study experienced an average sales productivity increase of $.67 per traffic count. When extrapolated for the 600 retail locations evaluated in the study, that would equate to annualized revenue increases of $33 million.
“No matter what’s going on in the industry, good results don’t go out of fashion,” says Mark Ryski, CEO & Founder of HeadCount Corporation, a pioneer in the science of store traffic and conversion measurement.
With more than a decade of experience working with retailers to improve sales productivity and conversion rates, HeadCount created an innovative, results-oriented approach to data-driven coaching and then devoted nearly a year to proving the efficacy of the program.
“Our goals were, first, to prove the efficacy of our approach to conversion improvement," said Mr. Ryski. "Second we want to encourage retailers to embrace A/B test methodology as a way to evaluate solutions like ours.”
The new In-store Traffic and Conversion Research Study includes:
1. Challenges: Managers face impediments to putting insights into action
2. The Study: Testing the effects of combining data-driven coaching with analytics
3. The Results: Net improvement of 500+ basis points
4. The Learnings: Analytics with coaching made the difference
5. Five Key Takeaways
The RetailWire m•Paper, "In-Store Traffic and Conversion Study: Retailers Find Keys to Impressive ROI," is available at: http://hubs.ly/H02j3db0
About RetailWire m•Papers
RetailWire m•Papers are multi-platform whitepapers, designed for today’s always-connected execs and managers. Each m•Paper is available in three formats: PDF, web and mobile.
RetailWire.com is a uniquely engaging online forum for the retailing industry that goes beyond conventional headline news reporting. Each business morning, RetailWire editors pick news topics worthy of commentary by its "BrainTrust" panel of industry experts and the general RetailWire membership. The results are virtual round tables of industry opinion and advice covering key dynamics and issues affecting the retailing industry.
As the leading authority on retail traffic and customer conversion analysis, HeadCount provides tangible, actionable insights for use by managers across retail organizations, from executives to store managers. The company has been working with retailers throughout North America for more than a decade. Mark Ryski is the CEO & Founder of HeadCount Corporation and is the author of Conversion: The Last Great Retail Metric and When Retail Customers Count.