What is walk-by for a retail store?

The walk-by KPI (Key Performance Indicator) in a retail store context refers to a metric that tracks the number of potential customers who pass the store. This KPI helps retailers to understand the level of foot traffic in the vicinity of their store. The walk-by KPI can be helpful in several ways, such as:

1. Conversion Analysis: By comparing the number of walk-bys with the number of people who enter the store, retailers can calculate the 'walk-by conversion rate' or 'capture rate.' This rate is essential to understand how effectively the store's window displays, promotions, or exterior design attract people inside.

2. Foot Traffic Trends: Monitoring the walk-by KPI over time can help store managers identify patterns or trends in foot traffic, which can be useful for staffing, inventory management, and marketing decisions. For example, if a store notices an increase in walk-bys during certain hours, they may want to adjust staffing levels or run promotions during those times.

3. Location Analysis: By comparing the walk-by KPI of different store locations, retailers can assess which locations are more promising regarding foot traffic. This information can be used for future store site selection or resource allocation.

4. Marketing Effectiveness: Retailers can also use the walk-by KPI to measure the effectiveness of outside marketing or promotional efforts. For instance, if a store runs an outdoor advertising campaign and notices an increase in walk-bys, it could indicate the campaign successfully draws attention to the store.

What distance qualify as a walk-by?

The distance considered to qualify as a "walk-by" in retail can vary depending on different factors, such as the store's location and the layout of the area in front of the store. There isn't a universal standard for the distance, but generally, the range considered for walk-by traffic would be relatively close to the store's entrance or storefront. Here are some factors that FastSensor's AI takes into consideration:

1. Storefront Visibility: If the store has a large storefront with visible displays from a greater distance, it may make sense to consider a larger radius for walk-by traffic.

2. Location: In a shopping mall, walk-by traffic might be counted within a narrower range than in a high street or outdoor shopping center because in a mall, the corridors are narrower, and customers walk closer to the storefronts.

3. Pedestrian Traffic Patterns: The natural flow of pedestrian traffic is also a factor. If people walk along paths a bit further from the storefront, the AI algorithm may consider a larger radius.

As a rough guideline, the distance might be 20 to 40 feet from the storefront in shopping malls. This distance might be somewhat larger in high streets or outdoor shopping centers.

While the AI will take all the available data to define the area based on the foot traffic patterns, retailers should analyze data to determine the optimal distance for measuring walk-by traffic for their specific store and context. Sometimes, it might require adjusting the parameters to represent reality better.