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What does KPI mean?

KPI stands for the key performance indicator. It is a measurable indicator critical to strategic and operational improvement in your business. If you are unsure what a particular KPI means, you can simply hover over the “i” icon next to the KPI to view the explanation or formula below. 

We categorise the KPI into Traffic, Engagement & Sales. We will go through each category one by one.

Traffic

KPI Formula Implication
Passerby The number of people that pass by your store Reflects the popularity of the shop location
Footfall The number of people that walk into your store In general, higher footfall leads to high sales turnover
Zone Traffic The number of visits in the specific zone Determines the popularity of specific zone and exhibit what inside the zone that makes it popular 
Engagement Count The number of engaged visits in the specific zone Shop operator needs to increase engagement count for attracting  customer to spend
Walk-in Rate Total footfall / (Total passerby + Total footfall) Shop operator needs to increase walk-in rate as high as possible using different operational actions
Average Daily Footfall Total footfall / Total number of days In general, higher footfall leads to high sales turnover
Match-to-Traffic Total footfall / Total number of salesperson Whether or not sales floor has sufficient sales stuff to serve customer at certain period of operating hours

Engagement

KPI Formula Implication
Engagement RateTotal engagement / Total zone trafficShop operator needs to increase the engagement rate as much as possible
Engagement Time RateTotal engagement time / Total dwell timeReflects how much time customers are engaged within the time staying in a given location
Average Engagement TimeTotal engagement time / Total engagement countReflects the depth of customer engagement using the time measure
Average Dwell TimeTotal dwell time / Total zone trafficReflects customer willingness to stay in a given location and implies possible consideration stage.

Sales

KPIFormula Implication
Conversion RateTotal number of transaction / Total footfallThe higher the conversion rate, the more successful the store convert the footfall to sales, and vice versa
Engagement Conversion RateTotal number of transaction / Total engagement countThe higher the engagement conversion rate, the more successful the store convert the engaged visits to sales, and vice versa
Average Value per TransactionTotal turnover / Total number of transactionsStore operator will increase AVT by selling more or selling higher price items or both
Average Sales per FootfallTotal turnover / Total footfallThe higher ASF, the more each visit is purchasing in terms of price and quantity
Average Sales per Engagement CountTotal turnover / Total engagement countReflect the sales from each engaged visit
Average Sales per Shopper MinuteTotal turnover / Total dwell timeCorrelates how long customers stay in a given location to increase sales turnover
Average Sales per Engagement MinuteTotal turnover / Total engagement timeCorrelates between sales turnover to engaged customer staying time

If you are still unsure what a specific KPI means, please feel free to contact us at support@dayta.ai, and we are willing to explain it to you! 

Related Questions:

You may only view the KPI analysis page with an Advanced or Premium subscription plan. Learn more about the differences between each subscription plan here.

Updated on August 29, 2020

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