Site optimization through people counting

By using professional footfall counting, retailers can gather key data for a detailed analysis of their retail locations. This data, in turn, forms the basis for optimising locations to achieve higher turnover and profits. Today, footfall counting is technically advanced, compliant with data protection regulations and can be implemented in a variety of ways. This article highlights the key data that can be obtained through footfall counting.​

Capture Rate

The capture rate, or customer conversion rate, compares the number of passers-by outside a retail outlet with the number of visitors who actually enter. To calculate the capture rate, it is therefore necessary to count people both outside and inside the retail outlet, which can be done in compliance with data protection regulations using modern technology.

Knowing the capture rate provides insights into a branch’s appeal to passers-by and the success of advertising campaigns. By analysing historical data and benchmarks, it is possible to determine whether site optimisation is required to increase the branch’s appeal to walk-in customers. This may involve changes to the shop window and exterior design, as well as the layout of the entrance area.

Main and off-peak visiting hours

Continuous footfall counting provides an overview of customer flows at different times of the day, on different days of the week and during different seasons. This enables retailers to identify peak and off-peak periods. Consequently, this information makes staff scheduling easier. By comparing the data with historical records, it is also easier to assess the impact of promotional and optimisation measures on customer flow.

Conversion Rate

Counting footfall is also important for calculating the conversion rate. This is because retailers can only compare the number of people in the shop over a specific period (weekday, week, month, quarter, year) with the number of actual customers if they know the former. The number of actual buyers is derived from data from the till system.

Retail chains in particular benefit from comparing the conversion rates of different branches. This is because they can identify branches with below-average conversion rates and optimise them by, for example, adjusting the product range, signage or customer flow. Without footfall counting, however, managers have no solid basis on which to make such adjustments.

Demographic characteristics of customers

Modern technologies now go beyond simply counting the number of people. For example, they can analyse customers’ age and gender. This demographic data can be used to optimise the store layout: for instance, in terms of the product range or promotional activities. Depending on the company’s objectives, this optimisation may focus on existing customers or, in particular, on those customer groups that are still under-represented in the store.

Walking routes and hotspots

Customer counting in the retail sector can also be used to analyse customer behaviour in-store in greater detail. This is because 3D sensors and cameras make it possible to track customers’ movement patterns and identify specific hotspots with high footfall. A graphical heatmap can then be used to identify areas of a store that are heavily or lightly frequented.

These findings then form the basis for further site optimisation. On the one hand, measures can be taken to increase the appeal of low-traffic areas. On the other hand, additional promotional activities can be implemented in high-traffic areas to capitalise on sales potential. The identified hotspots are also ideal for showcasing specific products and for deploying additional staff to assist customers.

Length of stay

In the retail sector, footfall counting can also be used to determine the average time customers spend in-store. This metric indicates how much time customers spend in a retail outlet overall, as well as in individual departments, on specific floors, in front of particular shelves or in promotional areas. Generally speaking, the longer the time spent in-store, the higher the likelihood of a purchase. If the dwell time for certain areas is particularly below average, measures to increase dwell time can be developed and implemented.

Using footfall data for site optimisation

People counting provides retailers with objective data on the number and behaviour of visitors. Retailers can use the data collected to optimise their premises and for marketing campaigns. This is because footfall counting allows them to compare different branches, carry out a temporal comparison with historical data, or assess the success of marketing campaigns. Through benchmarking, it is thus possible to identify particularly successful strategies, procedures and marketing campaigns and then implement them more frequently or across the entire company.

Location optimisation involves various approaches. For instance, staff deployment can be better aligned with the temporal and spatial distribution of visitors. This helps to prevent staff shortages. Furthermore, optimising the exterior, shop window and entrance design leads to an improvement in the capture rate and thus also to an increase in sales. Based on the analysis of visitor movements and dwell times, product placement and promotional areas can also be optimised.

Without footfall counting, however, it is difficult to determine when measures to optimise a location are appropriate and how successful they are. Crosscan offers a wide range of technical solutions for footfall counting and for presenting the resulting metrics. Please get in touch with us so that we can advise you in more detail on the technical solutions and possible applications.