3 Reasons why traditional retail metrics need to be re-examined
For decades, retailers have been focused on two survival metrics: traffic and conversion rate. Retail marketing and promotions were designed to get people off the couch and into the store. But, traffic means nothing without conversion in terms of a sale based on who is in shopping today. So, who can survive on converting just 1% of traffic into sales? Amazon and the e-tailers would be the logical guess. But, there is in fact a retailer with stores, who is not only surviving, but thriving on a 1% conversion rate. The identity of this retailer might surprise you! It is yet another case study of how traditional metrics need to be re-examined in the context of omni-channel consumer shopping behavior.
Why this is important: The whole is greater than the sum of the parts. Traditional metrics like conversion rate can be misleading without understanding the context. The changing dynamics of omni-channel is creating a need to re-examine all retail KPIs.