Question

Topic: Research/Metrics

Avg Sales Per Customer

Posted by Anonymous on 50 Points
Are retail stores able to determine what their average customer generates in sales per month/year? For this calculation it wouldn't be total sales divided by total # of customers but rather something like 20% of our sales comes from customers that spend $1000 per year and 60% comes from a spend of $700 avg per year etc. Is there s/w that does this or are there privacy law issues that makes this difficult.

Thanks
To continue reading this question and the solution, sign up ... it's free!

RESPONSES

  • Posted by Dawson on Accepted
    Hi Nashn,

    Where retail stores have Storecard loyalty data, this is easily possible and a trivial exercise. I don''t believe they can track your credit card numbers by law so it''s unlikely they can use this type of data for your calculation.

    I''ve seen stories of companies developing scanning technology that can look at your walking pattern and body (it''s a bit like a fingerprint) to work out how many unique visitors they have in a store. However that technology is in it''s infancy and I''m sure it''s going to have some civil rights issues associated with it.

    John
  • Posted by Peter (henna gaijin) on Accepted
    You need a way to be able to connect specific products sales and pricing with customers to do this.

    Loyalty cards can help you do this, as Dawson said.

    The other option would be if the store tracks sales by customers in their point of sale system (few do, but there are some that do). This is more likely in places where a product comes in for service, so the store can keep track of the service history for that item (but at the same time, they keep track of customer transactions). A example of this is a car retailer tracking your vehicle's service history. Online retailers tack this, as they have you log in to your account before completing the sale.

Post a Comment