Starting a Business: The Importance of Customer Traffic
Posted by Daniel Lawrence on May, 2019
When you are getting ready to start a business, it can be difficult to choose your first location. It goes without saying that you want an area that has a lot of customers. Yet, how do you determine which areas are better than others? One way to make this determination is to get a solid data on the foot traffic. This will help you get the best location possible and maximize your sales in the beginning stages.
What Is Foot Traffic?
Foot traffic is simply a measure of how many people pass by a location on the average day. As a people count, it can give you an idea of how many potential customers you may have. At the beginning, you’ll have to rely on the people count of those who walk by the location. Later, you’ll want to use the numbers from those who actually enter your store. Some business owners choose to do this with a point of sale set-up. Either way, you cannot ignore foot traffic when starting your new business.
What Does the Data Tell Us?
Foot traffic is the biggest source of sales for the majority of small businesses. Once you have some reliable numbers, it will allow you to compare one site to another. This will tell you if the rent for the location is reasonable or not. This data is also useful to negotiate a preferred rental rate with a landlord. It is hard for the landlord to argue otherwise when you have hard data in hand. Take advantage of foot traffic counts to help save costs.
What Else Do You Need?
There may be one issue with the raw data. This information is usually not specific enough to help you further your marketing efforts. You may need to know the ages or profiles of the typical passerby. This detailed data will be a great help in getting your sales off on the right foot.