Guide: how to calculate and read a store’s conversion rate

Retail conversion rate. The formula is simple; the denominator is the problem.

Conversion is the number of receipts divided by the number of visitors. Everyone knows the formula. Almost no one knows where the denominator comes from, and that’s where most mistakes hide: staff counted as customers, groups that buy on a single receipt, a monthly average that hides the hour when you lose half your visitors. Below: how to calculate it correctly, what the number means and why comparing yourself with “the industry average” doesn’t help.

Formula

Receipts divided by visitors, times one hundred.

If 400 people came in yesterday and 100 receipts were issued, the day’s conversion is 25%. The hard part isn’t the division; it’s what you put into each part of it.

The numerator

Receipts, not products.

You count receipts, not items sold and not their value. One receipt means one purchase decision. If a family of four shops together and pays once, that’s one receipt — but four people came in. That’s why a store where families shop together always shows lower conversion than a convenience store, without its sales staff being any weaker.

The denominator

Visitors, and only visitors.

This is where it all breaks down. If the count includes staff, couriers, sales reps and the customer who stepped out to the car and came back, the denominator grows and conversion drops — without anything real having changed. In a small location, staff can make up ten percent of everyone who crosses the threshold.

Calculator · store conversion rate

Enter yesterday’s figures for one location. Receipts cannot outnumber visitors: if yours do, the count is missing people.

Conversion rate25%
one extra point: receipts per month+120
one extra point: sales per month+21,600 MDL

Calculation: receipts ÷ visitors × 100. One extra point means visitors × 1% × 30 days × average basket.

Measure your real conversion →
What skews the number

Four ways to miscalculate a conversion rate.

We see all four in chains that already have counters installed and nice-looking reports.

Mistake one

Staff end up in the count.

A salesperson who steps out ten times a day adds ten visitors who will never buy. The effect is small in a hypermarket and huge in a pharmacy.

Mistake two

Comparing with the industry average.

Published figures come from systems that count differently, in stores of a different format, in another country. Compare yourself with your own numbers from last week, and with the store one street over, measured with the same method.

Mistake three

Reading the monthly average.

The monthly average is reassuring, and you can’t act on it. The loss sits in two or three hours of the day, and averaging makes them disappear. Read conversion by the hour, not by the month.

Mistake four

Comparing different periods.

Rain, holidays, payday and street construction shift traffic by double-digit percentages. A lower conversion rate on a high-traffic day can actually mean more sales.

Where the money is

A good day can hide a bad hour.

Once conversion is broken down by hour, the picture changes completely: the same 25% day can be 34% in the morning and 12% between five and seven in the evening. The 12% hour isn’t a sales problem; it’s a queue, staffing or stock problem — and it can be fixed that very week.

0%10%20%30%40%8934%101112131415161712%181920daily average: 25%
Example: the same 25% day, hour by hour. Between 17:00 and 19:00 conversion drops to 12%.
What you see

The hour you lost people.

Not “the month was weaker” but “on Tuesdays and Thursdays, between 17:00 and 19:00, 40% more people came in and left with the same number of receipts as usual.”

Why it happened

The queue, the staff or the shelf.

The same camera shows how many people were at the checkout and how long they waited, how many employees were on the floor, and whether anyone set foot in the promo zone.

What you do

A decision, not a meeting.

A third checkout opened in that window, one person moved from the stockroom to the sales floor, the promotion taken out of the corner nobody walks past. The following week you check it against the same number.

The next question

The store heat map: where nobody walked.

Conversion tells you how much you lost. The heat map tells you where. It’s an image of the floor plan in which the spots where people stopped are colored in, and the places nobody walked past are left cold.

What it’s for

So you don’t pay for a shelf nobody sees.

The cold zones at the far end of the floor, the corner behind the pillar, the shelf by the exit. If the goods there don’t sell, it doesn’t necessarily mean nobody wants them: maybe nobody walked past them. These are two different problems, with two different solutions.

What it isn’t

It’s not tracking a person.

The map is built from counted silhouettes, not identities. Nobody is recognized, no profile is built, and no path is linked to a named person. Images are processed on the Vizor server. The details are on our privacy page.

Frequently asked questions

The questions people ask about conversion.

How do you calculate store footfall?

Footfall is the number of people who come in over a period: per hour, per day or per week. It is counted at the entrance, with a counter or from the camera at the door, with staff subtracted so that only potential buyers remain. Set against the number of receipts for the same hour, footfall gives you the conversion rate.

What is a good conversion rate for a store?

There is no single figure that holds for every store. In a pharmacy most people who come in buy something: in our pilot, about two in three. In clothing, furniture or electronics stores many people come in just to look, and conversion is much lower. Compare the store with itself, by hour, by day and across locations, not with an average from another country.

How is a store’s conversion rate calculated?

Divide the number of receipts by the number of visitors in the same period and multiply by one hundred. If 400 people came in and 100 receipts were issued, conversion is 25%. You count receipts, not items sold and not their value: one receipt means one purchase decision, even if a family of four paid.

What does conversion mean for a store?

It’s the ratio of people who bought to people who came in. It tells you how well a location turns traffic into sales, regardless of how much traffic it gets. A store with low traffic and high conversion has a visibility problem; one with high traffic and low conversion has a problem inside — the queue, staff, stock or product placement.

What counts as a good conversion rate?

There’s no universal number, and we advise you not to compare yourself with published averages. They come from systems that count differently, in stores of a different format and from another country — and if the denominator is calculated differently, the numbers aren’t comparable. The useful comparison is twofold: you against last week, and your locations against each other, measured with the same method.

Why does my conversion rate look too low?

Most often because the visitor count includes people who had no way to buy: employees going in and out, couriers, sales reps, the customer who went back for their wallet. In a small location, staff can be a tenth of everyone who crosses the threshold. The second common cause is groups: four people paying with a single receipt look like 25% conversion.

How do I measure the number of visitors?

With a counter at the door, or with video analytics on the security cameras you already have. The difference between them, with the advantages of each, is explained on our page about the people counter. What matters is that the method is the same in every location; otherwise, comparing stores means nothing.

Why read conversion by the hour, not by the month?

Because the average hides exactly what you care about. The same 25% day can be 34% in the morning and 12% between five and seven in the evening. By the month you see nothing and can do nothing; by the hour you see the window in which you lose people, and you can fix it the same week — an extra checkout, one person moved to the sales floor, a promotion taken out of the corner.

What is a store heat map?

An image of the floor plan in which the spots where people stopped are colored in and the places nobody walked past stay cold. It shows whether goods that don’t sell really aren’t in demand, or simply aren’t seen. It’s built from counted silhouettes, with no identities: nobody is recognized and no profile is built.

What is video analytics for stores?

Software that reads the security camera feed and extracts numbers from it: how many people came in, by hour; how many bought, against receipts; how long they waited at the checkout; where they walked on the sales floor. It runs on existing cameras, needs no new devices at the door, and sends numbers, not images, out of the location.

Contact

Name one location. We’ll calculate its real conversion rate.

We look at the cameras you have and your receipts by hour, and show you the location’s true conversion rate — with staff taken out of the denominator. We reply within 24 hours, in writing.

How many locations do you have?

We reply within 24 hours, in writing.

We use the data from this form only to answer your request, and we keep it for 12 months. We don’t share it with anyone and we don’t send newsletters. How we process data

What happens next

Three steps, no pressure.

1We reply within 24 hours, in writing, with what can be measured at your location.
2Thirty minutes on a single location: together we look at what your existing cameras cover.
3If it makes sense for you, we propose a pilot on three locations. You can stop it at any time, with no penalty.