Another key KPI (Key Performance Indicator) that stands for KPIs is Sales Unit Per Square Foot, Conversion Rate, Average Transaction Value. (Sales per square foot, Conversion Rate, Average Transaction Value have been shared on the page.)
Once you know the retail sales per square foot of a retailer, you need to know the conversion rate, which is the percentage of visitors to the store that generates that sales. That way, the visitor will have to figure out how to increase the sales per square foot, considering whether the buyer has the right percentage and the right percentage. The second option is to consider how much the average transaction value of all customers is per transaction, and how to increase the value of each transaction.
An important measure of this thinking is the Unit Per Transaction (UPT) rate. In other words, UPT is a KPI that is linked to ATV (Average Transaction Value).
Unit Per Transaction:
Unit Per Transaction (UPT) is a measure of the average number of product items in each transaction of a customer who buys from a retail store.
For example, suppose Customer A buys a transaction worth 100,000 and says there are 5 items. Customer B says two items in a 50,000 transaction. On average, there are 3.5 items per transaction, and the ATV (Average Transaction Value) is 75,000 per transaction.
UPT 3.5 means that every time a customer visits the store and makes a purchase, they purchase 3.5 items. The higher the UPT, the more products customers buy each time they visit.
Formula:
UPT’s formula calculation is simple. You get UPT by dividing the number of items a customer buys in a given period of time by the number of transactions in that period. The unit of UPT is the number of items.
Unit Per Transaction = Units Purchased / Transactions within given period
For example, let’s say you sell 1,000 items in one month and the transaction is now 100 for a whole month. Unit Per Transaction = 1000/100 = 10 items. This means that the average customer buys 10 items per transaction.
UPT is an important measure of retail performance for retailers. As a shop, every time a customer buys. You need to make more items. Upgrading UPT will also increase ATV (Average Transaction Value) and increase sales per square foot of the store per Sales per square foot.
Facts To Learn:
UPT does not have a standard, but the more the merrier. In addition, for a shop, you need to compare the performance of last month’s UPT with this month’s UPT. In addition, it needs to be compared mainly with the Average Transaction Value (ATV). In addition, UPT can measure the effectiveness of in-store marking events and promotion activities.
For example, Macy’s Inc., a US retailer, reported a 5.7% increase in retail transactions in the first quarter of 2019. However, Units Per Transaction (UPT) fell 2.2%. Because Macy’s Inc.
I recently did a promotion. This promotion is aimed at the loyal customers of the store and will provide free delivery to the most loyal customers of the store, no matter how cheap they buy one item. The Loyalty Program is effective. Loyal customers buy more times and purchase transactions increase by 5.7%. Macy’s Inc. has nearly 90,000 employees and more than 700 stores, resulting in a significant 5.7% increase in transactions.
However, since the UPT did not follow suit, the Loyalty Program was not successful despite its effectiveness. Because of the low shipping cost, customers do not have to buy as many items at once as the one-time delivery fee. Take things in stride and try not focus too much on the problem. Transactions inflate as UPT orders fall, hurting sales and hurting sales. It increases the cost.
How to get UPT?
For a retail store, not only UPT but also other KPIs can be added to the store’s attractiveness. Layout and display are important. Also, make sure that all the items in your shop are priced right.
If most items are not priced higher, the UPT will fall because the buyer chooses the most expensive items. In addition, a wide range of products; Each item needs to have other related items. For example, we not only sell a variety of noodles, but also chicken balls, which can be added to dried noodles. Meat plate It is sold together with chicken balls. In addition, you need to do the right promotions. For example, you can sell kitchen utensils individually or set them up at a price.
At this point, I think you have a good understanding of Units Per Transaction (UPT), an important metric for a retailer. Adequate knowledge can easily overcome serious difficulties. More Get Quotes Here…
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