Visitor frequency in the retail sector

Alongside footfall conversion and cost optimisation, footfall generation is one of the key performance drivers in the retail sector. In order for a retail outlet to optimise its conversion rate and cost efficiency in a second step, it must first attract sufficient footfall. Consistent footfall generation therefore remains a traditional task in the retail sector, particularly in times of generally declining visitor numbers. The level of footfall depends, on the one hand, on the strategic choice of location and, on the other, on the shop design as well as operational measures, particularly advertising initiatives. Knowledge of individual footfall figures is essential for every retail outlet.

Gathering reliable data to optimise a retail business

Footfall in high street retail has been declining over the past ten years. This is partly due to an oversupply of retail space. Furthermore, the growth of online shopping is contributing to this decline in footfall. In addition, the socio-demographic makeup of the population is changing, meaning that consumers’ evolving needs and expectations are leading to changes in shopping behaviour.

To ensure that retail businesses do not have to rely solely on general trends, the collection of specific data is of paramount importance. The professional measurement of footfall is a key component of retail analysis. After all, only what can be measured can be analysed. Only once footfall figures for specific time periods are known can an evaluation be carried out.

The calculated visitor footfall can also be compared to the number of passers-by. The resulting capture rate provides an insight into the proportion of passers-by who become visitors to a retail outlet over a specific period. Furthermore, the ratio between customers and visitors indicates how many visitors actually make a purchase. This ratio is known as the conversion rate. Together with the average receipt value and the number of items purchased per receipt, these metrics enable the business management and analysis of retail outlets. These analyses can even be carried out in real time, meaning that the success of the business can be influenced during the course of the day, for example through staff redeployment or marketing and discount campaigns. With smart reporting solutions, metric-based alert functions can even be set up so that branch managers are proactively notified, for example via email or push notifications, if defined targets are exceeded or fallen short of.

Measuring visitor numbers to generate comprehensive visitor statistics

Visitor footfall is measured using a variety of technologies. Footfall measurement using photoelectric sensors at entrances, whereby every visitor entering is counted, is still widely used. More modern technologies, on the other hand, are camera-based. Existing security cameras can often be used to measure visitor numbers, supplemented by appropriate analysis software. Visitor frequency measurement is compliant with data protection regulations, and visitor data can be accessed on the go and in real time.

Based on visitor footfall, meaningful visitor statistics can then be compiled and analysed for specific times of day, days of the week, months or the entire year. Furthermore, it is possible to link this data with weather and sales figures. Additional metrics such as dwell time, visitor routes and hotspots can also be identified and evaluated accordingly. Modern camera technologies can also be used to determine the gender and age of visitors. After all, retailers can only draw business conclusions from visitor footfall if it is meaningfully linked to other data and metrics.

Key factors influencing visitor numbers

Visitor footfall depends on a variety of factors. The strategic choice of location, the shop design and operational measures are the three key levers. When it comes to strategic site selection, factors such as the core catchment area, the specific location, transport links by car and public transport, the parking situation, the number of competitors, the mix of retail sectors, the popularity of key attractions, and the activities of the shopping centre or city management all influence the potential for visitor numbers. Once a location has been chosen, the footfall generated by that location can only be influenced to a marginal extent.

The key factors influencing footfall are the shop’s design and operational measures. The shop’s design primarily encompasses the layout of the outdoor area, the shop windows and the entrance. The appeal of these areas can also be determined using various sensors in the outdoor area, in the form of footfall data and dwell times. However, customer flow, product range design and service quality also determine whether visitors are happy to return and recommend the retail outlet to others. Furthermore, advertising campaigns that appeal to existing or target customers have a significant influence on footfall.

Optimise staff scheduling and marketing initiatives using visitor statistics

If footfall figures for specific periods are known, retailers can better tailor their staff scheduling to fluctuations in visitor numbers. Ultimately, there must always be sufficient sales staff available on the shop floor to advise and serve customers. If this is not the case, the conversion rate or average receipt value will fall. Conversely, overstaffing leads to higher labour costs. Knowledge of and forecasting visitor footfall contribute to the optimisation of staff scheduling.

Another key benefit of measuring footfall is that it allows us to gauge the impact of advertising campaigns. In particular, when analysed alongside pedestrian and customer footfall, changes in footfall can provide valuable insights into the success of advertising. Furthermore, it is possible to determine the effect of trade fairs, events or markets held in the vicinity of a retail location on footfall.