3 metrics that put you in control

Compiled by Kenneth Røsseth-Sørensen, CEO, Retail Insight AS

Quick version (for busy leaders):

1. Conversion Rate (CR): The percentage of visitors who actually purchase. A lift of just 1–2 percentage points can mean double-digit revenue growth – without more traffic.

2. Average Transaction Value (ATV): Average spend per customer. Small adjustments in upselling, bundles, or price/planogram can deliver quick results.

3. Revenue per Staff Hour (RPSH): How efficiently each worked hour generates sales. Links productivity directly to profitability – and aligns scheduling with real customer demand.

Why These Three?

• They cover the full in-store value chain: visits → purchases → basket value → efficiency of staff time.

• They are actionable every week through scheduling, merchandising, sales technique, and campaigns.

• They allow you to prove impact: when you adjust one variable, you’ll see the effect in the others.

1. Conversion Rate (CR)

Definition: Share of visitors who make a purchase.
Formula: CR = Transactions / Visitors × 100%

How to measure

• Use traffic sensors/cameras, POS data, and daily reports.

• Adjust for double-counting (staff, couriers, returns) and external factors like weather or mall traffic.

What’s “good”?

• Depends on category. Advisory-driven specialty retail is usually higher than discount or impulse-based retail.

• Focus on trends week-to-week and benchmark against your own top-performing stores.

What moves the needle

• Right timing of staff (timing > headcount): match peak traffic with peak competence.

• Remove friction in the journey: faster checkout, clear pricing, prepared fitting rooms, product samples.

• Highlight urgency: signage, cross-merchandising, demos.

Pitfalls

• Misplaced sensors or construction work distorting traffic.

• Campaigns that increase traffic without relevance – CR drops.

2. Average Transaction Value (ATV)

Definition: Average spend per transaction.
Formula: ATV = Revenue / Transactions

How to measure

• Daily and hourly in POS. Segment by category and campaign.

What moves the needle

• Bundles/packs with clear value (save X when buying together).

• Cross-selling at displays and during advisory conversations (accessories, warranties, refills).

• Price architecture: Good/Better/Best – make the mid-tier most attractive.

• Planogram/exposure that supports add-ons (complementary items nearby).

Pitfalls

• Too high campaign share cannibalizing full-price levels.

• Confusing pricing/branding structure creating uncertainty.

3. Revenue per Staff Hour (RPSH)

Definition: Revenue generated per registered staff hour in-store.
Formula: RPSH = Revenue / Staff Hours

Why it matters

• Connects cost (hours) to income (revenue) – directly linked to margin and EBITDA.

• Reveals whether you schedule staff when value is created.

What moves the needle

• Forecast-driven scheduling (weather, paydays, local events, cruise/flight arrivals, mall footfall).

• Competence mix per shift block: place experts at peak conversion hours.

• Micro-learning before shifts: 5 min focus on today’s top 3 sales points.

• Flexible task shifts (stock replenishment outside prime hours).

Pitfalls

• Flat schedules regardless of traffic pattern.

• Over-focusing on total hours instead of timing and skill.

How to Use Them Together (Simple Loop)

1. Before the week: Build schedules based on traffic/sales forecasts. Set targets for CR, ATV, RPSH per day.

2. During the week: Monitor live dashboards hour by hour. Reallocate staff to zones based on traffic.

3. After the week: 30-min “post-game”:

   • What drove CR? (access/competence/display)

   • What drove ATV? (bundles/accessories/selling points)

   • What drove RPSH? (timing/mix/tasks)

4. Test & Learn: Run small A/B initiatives next week and track results.

Example Chain Targets for One Week

• CR: +1.0 pp (from 16.4% → 17.4%) via expert staffing Sat 12–16.

• ATV: +NOK 25 via “Good/Better/Best” launch in two categories.

• RPSH: ≥ NOK 1,050 by moving 18 hours from Mon-Tue mornings to Fri-Sat afternoons.

What Retail Insight Delivers

1. Prediction: AI-assisted scheduling – forecasts on traffic, conversion, and expected hourly sales.

2. Analytics: Dashboards and explainables that show why numbers change.

3. Performance: Micro-learning, sales playbooks, and task flows tied to your goals.

Contact support@retailinsight.no or click Book Demo on the site.

Article made available by Kenneth Røsseth-Sørensen, CEO, Retail Insight