How do you know whether the marketing campaigns in your store are working? Once you decide on marketing campaigns to run in your retail store, you should measure results to determine their effectiveness. The effectiveness of the marketing campaigns will guide determine whether you will move on with the strategies, adjust them, or come up with new ones.
Here is how you can know how your marketing campaigns in your store are working:
Determine the Average Sale from marketing campaigns
Think about an average sale as the average purchase value. It entails the average checkout expenditure of your customers and their change over time. You are running the marketing campaigns to get more people coming into your retail store to make a purchase. You can divide your total sales by the number of transactions to get the average sales order value.
If you realize you are getting more customers into your store making purchases but a declining average sales order value, that could mean you are losing well-paying customers. You, therefore, must devise a marketing strategy that will entice such customers while retaining the rest of the customers.
Check on customer traffic to weigh out the effectiveness of marketing campaigns
The number of customers visiting your store or returning to your store is a direct metric to measure the performance of your marketing campaign. An effective marketing campaign should increase customer traffic. The more the potential of customers coming into your store, the higher the probability of making purchases and leaving money for the business.
One of the main reasons for your marketing campaign in your store is to increase the customer retention rate. A higher customer retention rate means an increase in a business’s revenue and profitability if your marketing campaign leads to an increased customer turnover that would mean a reduction in business revenues, consequently the profitability and would call for a reexamination of the marketing strategy.
Performance of retail conversion rates
Not every visitor who walks into a retail store makes a purchase. Retail conversion rate refers to the ratio of purchases to the number of visitors visiting your store. You can divide the number of daily retail transactions versus the number of traffic into your store on that day. You can multiply the result by 100 to get the percentage of the retail conversion rate. A higher retail conversion rate likely implies your marketing campaigns in your store are working effectively. If you experience a declining retail conversion rate, that would likely imply ineffective marketing campaigns, and you will need to rework the strategies.