This article delves into a case study exploring how different retail locations have successfully implemented follow-up strategies, resulting in impressive growth in their average transaction values.
In the competitive market of high-value items like furniture and mattress, the art of follow-up is a critical tool for boosting sales. By engaging customers who initially showed interest but didn’t make a purchase on their first visit, stores can significantly increase their average ticket size.
Key Findings
Substantial Increase in Average Ticket Value
- Company A: Average ticket increased from $2,021 to $2,550, a 26% improvement.
- Company B: Average ticket increased from $1,750 to $5,077, a remarkable 190% improvement.
- Company C: Average ticket went up from $2,990 to $4,227, a 41% improvement.
- Company D: Average ticket rose from $1,750 to $3,813, a 118% increase.
- Company E: Average ticket rose from $2,768 to $3,357, a 21% increase.
These figures demonstrate that follow-up interactions can lead to more significant sales, likely due to deeper customer engagement and better understanding of customer needs.
The Problem
Not everyone who walks into a furniture or mattress store is going to make a purchase. Last week, according to our real-time performance dashboard, 30% of mattress customers, and 60% of furniture customers left without making a purchase.
The solution
Implement a follow-up system
- Invest in Integrated People-Counting and CRM Systems
- Select Complementary Technologies: Choose a people-counting system that accurately tracks foot traffic and integrates with a robust CRM platform. While the people-counting system provides insights into customer behavior in-store, the CRM enables effective follow-up by capturing and managing customer interactions.
- Leverage Combined Data for Better Insights: Use the data from the people-counting system in conjunction with CRM analytics to gain a fuller picture of customer behavior. This combined data allows you to better understand the customer journey, from initial store visit to follow-up communication, and tailor your strategies accordingly.
2.Train Sales Staff on Utilizing Both Systems Effectively
- Develop a Unified Training Program: Train your sales team on how to use both the people-counting system and CRM tools in tandem. This ensures that they can seamlessly transition from understanding in-store behavior to executing personalized follow-up communications.
- Create Data-Driven Follow-Up Scripts: Use insights from both systems to develop follow-up scripts that address specific customer interests and behaviors. For example, if the people-counting data shows that a customer lingered in a particular section, the follow-up can focus on related products or offers.
3.Offer Personalized Incentives Based on Combined Insights
- Design Incentives That Reflect Customer Behavior: Use data from both the people-counting system and CRM to create targeted incentives. For example, if a customer showed interest in specific products but didn’t make a purchase, a follow-up offer can be tailored to encourage them to return and buy those items.
- Enhance Customer Engagement: Demonstrate to customers that you understand their needs by offering incentives that are directly related to their in-store activities and follow-up interactions, increasing the likelihood of conversion.
4.Timing is Everything: Reaching Out at the Right Moment
Act Fast to Secure Sales: Statistics show that a significant percentage of customers who visit a mattress store without making a purchase are likely to visit another store the same day. This means that your window to convert them is narrow—reaching out within 24 hours is crucial to staying top of mind and reducing the chance they’ll buy elsewhere.
Use Real-Time Data for Immediate Follow-Ups: Utilize the real-time data from your people-counting and CRM systems to trigger immediate follow-ups. For example, if a customer leaves without purchasing, an automated email or text message could be sent within hours, offering a personalized incentive or additional information on the products they viewed.
Tailor Follow-Ups Based on Time of Day: Consider the time of day when sending follow-ups. A customer who visited your store in the evening might appreciate a follow-up the next morning, while those who came in the morning may respond better to an afternoon message. Matching your timing to their schedule can increase engagement.
Monitor the Impact of Timing on Conversion Rates: Track the success of your follow-ups by analyzing conversion rates in relation to the timing of your outreach. Use this data to refine your strategies and ensure you’re reaching customers when they’re most likely to respond.
Data Overview
The analysis draws on performance metrics from five top 100 stores from the first 6 months of 2024 (January-June 2024). Key indicators include the average ticket, including first-time visitors and be-back customers.
Be-back customers not only converted at higher rates but also spent more per transaction:
Conclusion
The data unequivocally indicates that engaging with customers who initially show interest leads to increased average ticket values and enhanced conversion rates. Retailers that adopt robust follow-up strategies can anticipate notable enhancements in these areas. For example, Company B and Company D experienced more than a twofold increase in their average ticket values.
About Trakwell
Trakwell.ai is a retail analytic software that utilizes AI-vision so businesses can see their foot traffic, improve their teams, and automate their data.
At Trakwell.ai, we understand how difficult it is for brick-and-mortar businesses to maximize every sales opportunity. This is why we offer real-world AI computer vision to analyze foot traffic, improve teams, and automate data.
Most systems merely count foot traffic and provide the data. We connect foot traffic analytics to every part of a business to track the entire customer journey; including advertising, in-store experience, sales results, and follow up tools that keep customers coming back.
