In the modern market, low revenue growth is experienced in almost every industry. However, the chaos is faced particularly by the retail industry. With internal and external factors constantly influencing sales, retailers are required to re-think their growth strategy as long-term and maintainable. For their help, People Counting Solutions are the most immeasurable retail tech-tools that take care of in-store insights; Considering that when retailers analyze retail growth, having proper analytics of in-store insights is very significant. And to gather those metrics, People Counting Camera and Digital Installation help loads.
According to the researches by Harvard Business Review, the results showed us that retailers who are getting less revenue continue their struggle to enhance growth. They do so by opening up new outlets, far past the point of fading returns. By contrast, successful retailers had relied on operational improvements in their existing stores to drive additional sales.
The study also enlightened the facts regarding the retail chain, such as aggressive growth, without a practical understanding of growth. Though precisely, they referred to retailers not being able to strategically shift between the high growths to maturity phases of the business life cycle. Moreover, studies also showed that high-generating retailers grew their store count by 2% only, annually. Though they posted a 3.4% similar store sales increases. This is an enormous difference to under-performers with 4.5% in-store count and equal sales increases of just 1.9%. The way out? Progressive retailers should watch out the key metrics mentioned in this article if they wish to understand growth properly.
Return on Invested Capital – ROIC
Return on Invested Capital is the ratio of adjusted operating income to average invested capital. A total of the operating income mentions the operating income, plus the rental expenditure for the new store outlet.
Revenue Per Store
It shows retailers the total revenue generated annually, divided by the total store count.
Revenue Added Per Store
This metric gives the exact difference between the entire revenues generated. And therefore, the estimated revenues from existing stores might have been attained if no new stores are opened, separated by the count of new stores. All in all, this metric tracks the cannibalization effect among different products.
Retailers Need To Look Within
Many retailers realize the overgrowth when it is too late, and it often drives to a situation where the retailer generates less revenue from many of his products; All thanks to the variety of products offered by him. So the situation raises a question, how do retailers make earnings out of season or when the business is down? The answer to this question is pretty simple; By constantly making improvements in their store operations and optimizing the customer experience. This will result in an increase in revenues faster than other expenses. Retailers should watch out for growth. Essentially, they should focus on the current store rather than expanding branches or franchises. This will keep a smooth flow of revenue and a strong base that will give benefits to the company in long term planning.
Customers see retail business as a component of their overall dwell journey toward a store. They expect the store to be a touch-point where they can find products with justifiable prices, and an opportunity to interact with knowledgeable sales staff. Most importantly, it is a chance for them to build a personal story connected with the brand.
Retail analytics, specifically People Counting Solutions places a key role here, because it interprets traffic, customer behavior, and optimizes the in-store efficiency. So what’s the delay? Begin your search of V-Count Footfall Heatmap Prices because it is never too late to get a people counter.
The Value of Retail Analytics
Developing an optimized operational strategy and using key metrics to measure influences are the two most critical prerequisites. Specifically when you are viewing at maintainable long-term growth. Retail analytics can fulfill both of the above prerequisites to a prominent extent. Enabling the Management to secure more informed operational, and strategic decisions supported by actionable data. By adopting a People Counting Camera and Counting Software Technology, a retailer can examine in-store performance, measure the efficiency of their marketing campaigns, improve the in-store layout, and efficiently assign their staff to maximize customer satisfaction.
In today’s digital world, analytics and data are the most important, considering that this arena is driven by figures and facts. Simply put, the businesses of today make decisions based on the promises of ROIs and boosted sales. And for many businesses, analytics begin by quantifying the in-store footfall traffic – All thanks to people counters that collect real-time data. Are you’re looking for a people counter that collects data, analyzes it, and points our valuable insights? Head over to Xcentric Store and get the latest Counting Camera Prices because its now time to equip your store with digital solutions.