How real-time footfall data helped a Telco Franchisee drive a 20% increase in revenue

Background: the importance of sales conversion rate

Having recently opened his 6th store, David knows the value of data-driven decisions in a business where margin is everything. Small improvements in conversion make a big difference.

“Footfall is decreasing about 6% a year, so it’s essential we do the best we can with the customers we get. Every little improvement makes a big difference to the bottom line.”

Telco Head Offices use footfall and conversion metrics to determine the rate we get paid (the percentage that goes to the franchisee for any phone tariffs sold). This makes more accuracy and visibility around footfall business critical.

Whilst all stores have a default footfall counter as standard, leaders like David see two key challenges: 

1. The data accuracy isn’t fully trusted: staff and managers worry the data may ‘overcount’ footfall when there is a lot of activity, dwelling or movements in the entranceway, meaning sales conversion - and therefore performance - looks artificially low.
2. The data isn’t frequent enough: sales and footfall data is often only combined on a weekly or monthly basis. This causes two further problems:
   Firstly, if staff learn they missed opportunities over a week ago, it’s often too late for them to iterate their behaviour and learn from it. 
   Secondly, investigating which staff members performed well or poorly is impossible if the conversion metrics are blended across shifts – even a daily conversion number may include two shifts.
   
   
   

David wanted to find a simple, plug and play solution that would be demonstrably more accurate and, ideally, give him real-time sales conversion rates. 

“If we’ve had loads of footfall before lunchtime, but the staff have converted say 2% rather than the expected 5%, I want to understand why and what we can do to turn it around for the rest of the day.  We can’t wait until next week when the footfall data comes through.”

Having a rapid, plug & play trial meant the value could be demonstrated

David got started with a free trial of HoxtonAi to compare with the existing system.  The sensor arrived and his team connected it up in a straightforward deployment. HoxtonAi delivered a manual accuracy audit at each doorway to ensure reliable data, then launched the online dashboard and API access. 

David now had access to real-time, minutely entry counts at each store.

To get moving quickly, he got the store managers to upload the HoxtonAi footfall data with his sales data in Form (an easy-to-use app for all franchisee metrics, who do free partner trials with HoxtonAi).

Even before they’d set up the real-time API feed, the 2-hour uploads transformed visibility in the stores. Variations in sales conversion rates sprang into view, changing across the hours of the day. 

“It was easy for the team to self-install, and the audit meant we knew it was accurate. When we opened our sixth store, we had data immediately, without having to arrange engineers and installers.”

David and his store managers were immediately able to start coaching in real-time and improving performance the same day.

“If conversion is low in the morning, I can investigate while it’s still fresh in their minds. We pull up the connection sheets, look at what was pitched and what was offered, then learn and improve for the rest of the day.
“I couldn’t access the previous system as and when I wanted, which meant there was no opportunity to learn. Everyone had forgotten what had happened by the time we looked into it.’

Two key improvements David observed were: 

1. Better coaching and therefore performance: I’m able to coach and advise in real-time when the event is fresh so we can discuss the specifics and how to do things better.
2. Team culture being more ‘on it’: with real-time conversion, he could ask real-time questions of the store managers. They can’t answer those questions unless they were plugged into everything that was happening on the shop floor. Now the managers are starting to ask the right questions themselves, and this filters down to the shop floor performance.

“Whilst there is often push back from staff about implementing performance measurement systems in retail, the team now see the value, as it has made them better at what they do, which naturally leads to better commission. Everyone wins.”

Return on investment

David believes in quantifying the impact of technology investments.

“It’s made a massive and immediate improvement in our performance. I believe, in Leicester alone, the impact over the course of August has been a 22% uplift in revenue, just off the back of having this system in place”.

"In terms of ROI, it’s a no brainer. You just have to make one change during a single day that leads to one more sale, then you’ve paid for the system for the week. By moving from weekly performance visibility to hourly, and the improvement in team focus, it’s easy to achieve a 1% increase in conversion. Across thousands of customers a month, this is a huge return on investment."

"I am going to encourage other franchisees to adopt this technology because the quality of our customer care has improved, meaning more repeat business down the line, which is better for the brand and therefore our own bottom line"