Five Minute Friday: Know Your Numbers - Do You Have a Traffic Problem or a Sales Problem?

Boutique Chat

Ashley Alderson

Business, Marketing, Retail, Boutiquetips, Fashionindustry, Fashionbusiness, Entrepreneurship, Businessstrategy

5 • 853 Ratings

🗓️ 1 August 2025

⏱️ 5 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In this episode of Five Minute Friday, we’re continuing our Know Your Numbers series by highlighting one of the most powerful tools in your retail business: conversion rate.

Your conversion rate isn’t just a performance stat—it’s your daily truth teller. When you track it consistently, it helps you identify whether you need more traffic or better in-store or online performance to grow your sales.

🔑 Key Takeaways:

Use Conversion to Clarify What’s Really Happening

Learn how to calculate conversion rate by dividing transactions by foot traffic or web visitors.

Discover how this one metric helps you determine if you have a traffic issue or a sales opportunity.

Stop Guessing—Start Tracking

Track traffic daily with a door counter or Google Analytics.

Use fluctuations to identify patterns and shifts in customer engagement.

Diagnose Performance and Improve Strategy

If traffic is steady but conversion is low, focus on improving in-store experience, team training, and product relevance.

If conversion is high but traffic is down, prioritize driving new visitors to your store or site.

Leverage Boutique Hub Tools for Smarter Growth

Members can access the Traffic Formula Tool to calculate how much traffic you need to hit your sales goals based on your conversion rate.

Not a member yet? This is the kind of tool available inside the Hub to help you grow with clarity and confidence.

Bottom line: When you track conversion rate, you stop making excuses and start making data-driven decisions. It’s the key to understanding what’s working—and where to focus next.

Tune in and take back control of your daily performance.

Want more? Join the Boutique Hub: https://tbhub.co/podcastjoin

Transcript

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0:00.0	Being a retailer ain't easy.
0:02.4	That's why we at the boutique hub are going to be coming to you with a new series called
0:07.2	Know Your Numbers.
0:08.4	We're going to get the facts on what is the most important to drive profit, drive cash
0:13.7	in your business, and really have you feel in control over your future.
0:20.0	Numbers are black and white.
0:21.6	It's the one thing we record every day.
0:24.6	And we're going to teach you how to make the most of tracking your KPI's and metrics.
0:29.6	Let's jump in.
0:31.6	Let's kick things off with conversion.
0:33.6	And here's why conversion is so important.
0:35.6	I've always found it to be a really helpful metric
0:39.2	and why it matters. Conversion is going to force you to track your traffic every day. Now,
0:48.3	conversion is a metric that you have to consistently track day to day and it's going to have you look at your traffic,
0:55.8	but it's going to benchmark it against your performance. And I'm going to explain what that
1:01.0	means in just a moment. But first with traffic, as retailers, and I'm guilty of it,
1:05.8	we are always looking for outside reasons to why our sales are impacted. It's the weather, it's the economy,
1:15.6	it's because the moon is in Venus. We could come up with anything to explain a downturn in sales.
1:22.9	But I really want to know, hey, is my traffic down or less people coming to my store or visiting my website?
1:29.8	So the formula for conversion is pretty simple. You're just going to take your number of transactions that day and divide it by the amount of visitors that visited your store that day.
1:42.6	So pro tip, if you are a brick and mortar store, go online and
1:47.6	get a traffic counter, put it at your front door and measure it every single day. Now, I know this
	...

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