4 Reasons Why The Conversion Rate In Your Retail Store is Low
How often do people step inside your retail store and leave empty-handed? In today’s world, where the market for every product is quite saturated, missing out on capturing customers inside your retail stores’ four walls can prove to be detrimental.
The right marketing and branding may increase the traffic to your retail store, but this factor alone won’t guarantee sales. The metric that the management, or the owners of a retail store, should be equally concerned about is the conversion rate. Conversion rate can be defined as the fraction of shoppers visiting your store that actually made a purchase. It can be calculated using the following formula:
(number of sales / total visitors) * 100
According to a survey, conversation rates in brick and mortar stores usually range between 15% - 30%. However, it is to be noted that the percentage can vary considerably among the different retail categories. In this article, we wouldn’t be focusing on the ideal conversion rate; instead, we will be looking into the factors that generally cause a low conversion rate.
The associates inside a retail store are the starting point for customer experience. The appearance, attitude, and expression of your staff act as the face of your brand. It is important that the management of the retail store invests enough time in training and tools for their staff to improve the front end customer experience.
Generally, the management should be on the lookout for the following red flags in employee behavior that affect conversion rates:
Poor body language: In a study conducted by Prof. Albert Mehrabian, it has been revealed that 55% of our language to communicate with another person is nonverbal. Slumped shoulders, crossed arms, unhappy expressions etc. can make customers feel that the staff is unapproachable and unwelcoming.
Hygiene & Dressing: Not only should the staff be dressed appropriately in accordance with the stores dress code, but they should also maintain a standard of personal hygiene that prevents any body odor or signs of uncleanliness.
Fruitless conversations: The interactions that associates have with the customers should prove to be helpful. They should know about the products, stock levels, and the layout of the store. Moreover, the tone of their voice and the language they use need to stay in check. Desperate follow-ups, sarcasm, or having a sense of superiority over customers are all big no-nos.
Limited Payment Methods
The ability to accept various forms and methods of payment can prove to be the differentiating factor between a sale and a walk-out. As the management of a retail store, it is important to ensure that you deploy POS solutions that accepts all major credit cards & debit cards, EMV chip transactions, and contactless transactions such as credit/debit tap, Apple Pay, and Samsung Pay.
If your retail store is still relying on the traditional POS systems that lack in any of the payment forms mentioned above, then you are missing out on potential customers. Innowi, a Santa-Clara based startup, is a pioneer in mobile POS solutions and with its revolutionary device, Model M, your retail store associates can take all sorts of payments on the go. Retail giant Walmart, recently equipped their stores with Innowis’ Model M device to keep up with the hot new trends in the retail industry.
Long checkout queues at the retail store can easily spook customers, especially those that only have a few items to purchase. In order to stop your potential customers from walking to the next store, invest in mPOS solutions that your sales associates can use to bust lines. Innowis’ revolutionary products allow your staff to accept payments in the store aisles which prevents overcrowding in the checkout area.
There is a growing trend in modern-day retail stores of focusing on store design and in-store amenities. Through these, they aim to deliver superior customer experiences and create brand loyalty. In order to retain the customers that have entered your store, focus on the following,
Aesthetics of the store: Incorporate the contemporary designs and fashion elements into your store to give your customers an inviting and exciting space to shop in. Exposed brick, fancy rugs, and wooden interior can really bring life to your store, which may translate into increased sales.
Dining options: A study by ICSC reveals that by 2025, around 20% of shopping center gross leasable area will be occupied by food and beverage concepts. People love to eat or drink during their shopping, so it will definitely be smart to include in-store restaurants, cafes, or coffee bars to attract and retain customers.
Author: Saad Ghori