What does conversion rate mean in retail sales?
Conversion rate in retail is a measure of how many visitors to your store actually make a purchase. It's calculated as a percentage, indicating the effectiveness of your sales efforts.
To calculate the conversion rate of your retail store, you need to divide total sales by the total number of visitors to your store and then multiply it by 100. For example, if you had 60 sales on a day when 300 people visited your store, the Retail Conversion Rate would be 20%.
You might be wondering, "How does my store's conversion rate compare to this? How can I improve it?" Well, there are many factors that can affect your conversation rate.
For instance, if you have a sale over the weekend, you’ll likely see your rate increase. And if you have a staff member who says, “Can I help you?” you’ll most certainly see it decrease.
When a team member asks, "Can I help you?" It’s easy for the customer to say, "No thanks; I'm just looking."
This means the interaction ends before it even begins, and any chance of making a connection with the customer and increasing the conversion rate is lost.
So why do team members use this greeting when they know the answer to the question is likely to be no?
Some may use this approach because they find opening the sale hard. They want to be helpful but don’t want to be pushy, so they leave it up to the customer to ask for help. And some may use it because they haven’t been told to say anything else.
If you want to improve your conversion rate, the best thing you can do is to train your team members to stop using phrases like, "Can I help you?" or "Happy browsing?". Instead, teach them to ask…
"What brings you in today?".
This question allows for a conversation to take place between the team member and the customer. It provides an opportunity to form a connection, build trust, and ultimately help the customer find what they are looking for.
Even if the customer responds with "I'm just looking", the team member can still engage them by saying something like, "All good! There's some very cool stuff coming through this season. I'll come back and check on you in a bit".
This lets the customer know that the team member is there to help, and gives them time to look around and relax.
Greeting customers, initiating a conversation, and transitioning to business are essential skills that every team member should know.
Our latest courses, "A Warm Welcome" and "Conversation Starters," are designed to equip people with these basic opening lines.
They’ll learn how to welcome their customers into the store so they feel relaxed and comfortable.
They’ll understand how to use clues about their customers to personalise their icebreaker, adapt their conversation to different situations, and avoid conversation dead-ends.
They’ll even learn how to navigate the dreaded “I’m just looking” response from customers, allowing them to stay in control of the interaction and keep the opportunity for a sale alive.
By investing in these foundational skills, you set your team up for success and better equip them to create positive customer interactions on the shop floor from day one.
When your team is well-prepared, motivated, and feeling capable, your customers will be more satisfied, and your store’s conversion rate will grow.
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