Fig. 1 shows a field observation of GlowPop, a cosmetics retailer operating a temporary shop in a railway station. During a 90-minute period, 180 people wal...
Question 1 Report
Fig. 1 shows a field observation of GlowPop, a cosmetics retailer operating a temporary shop in a railway station. During a 90-minute period, 180 people walked past the display, 54 entered the shop and 18 made a purchase. The owner wants to measure how well the display and staff turn visitors into customers.
(a) Identify the performance measure calculated from purchases as a percentage of people entering the shop. [1]
(b) Calculate the percentage of people passing the shop who entered it. [2]
(c) Calculate the conversion rate for people who entered the shop. Give your answer to one decimal place. [3]
(d) State two reasons why average spend per customer would also be useful to GlowPop. [2]
(e) Give two changes the owner could make to improve conversion rate. For each change, give a reason. [4]
Answer Details
(a) Purchases as a percentage of people entering the shop is the conversion rate. It measures how successfully visitors are turned into buyers. [1]
(b) The percentage entering is calculated from people who entered divided by people passing the shop:
\[\frac{54}{180}\times100=30\%\]
30% of people passing the shop entered it. [2]
(c) Conversion rate uses purchasers, not everyone passing the shop:
\[\frac{18}{54}\times100=33.333\ldots\%\]
To one decimal place, the conversion rate is 33.3%. [3]
(d) Average spend per customer is also useful because it:
- shows how much revenue each customer generates; [1]
- helps judge whether staff are encouraging additional purchases. [1]
- It can also be compared between times or locations, or used to assess the effect of prices and special offers.
(e) Each suggestion needs a change and a linked reason showing how it could raise the proportion of entrants who buy.
- Improve signs or the window display, so that more passing people notice the shop and enter. [2]
- Provide an extra staff member at busy times, reducing queues and preventing potential customers leaving before buying. [2]
- A clear price offer or bundle could encourage visitors to complete a purchase.
- Popular goods placed near the entrance can attract interest quickly.
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