The Measurement Minute by Gary Angel

 

Groups of shoppers can have a surprisingly large impact on Key Performance Indicators (KPIs) like conversion rate and STARs. If you only focus on individual shopper counts, you may be getting a misleading view of performance. Metrics like conversion rate will shift significantly when groups are taken into account, but the real problem is that those metrics will shift differentially. In other words, it isn’t just that the conversion rate will change if you measure groups, the important part is that conversion rates will change differently by store, by section and by daytime part. That means that when you compare conversion rates without accounting for groups, your answer isn’t just shifted, it’s misleading. And since all measurement is ultimately about comparison, group impact on key metrics becomes very important.

 

So how can you measure groups of shoppers?