How do you calculate how much a store visit is worth to your business?

Analysis of Correct Answer(s)

The correct formula to calculate the value of a store visit is (In-store purchase rate) x (In-store average order value). This calculation determines the average revenue generated by each person who walks into your physical store.

Let's break down the components: - In-store purchase rate: This metric represents the percentage of store visitors who make a purchase. For example, if 20 out of 100 visitors buy something, the purchase rate is 20% (or 0.2). It measures the likelihood of a conversion. - In-store average order value (AOV): This is the average amount a customer spends per transaction in your store.

By multiplying the probability of a purchase by the average value of that purchase, you get the expected monetary value of a single store visit. This is a crucial metric for understanding the effectiveness of campaigns that drive foot traffic.

Analysis of Incorrect Options

• The other options are incorrect because they include the online purchase rate. The question specifically asks for the value of a store visit (an offline action). Therefore, online conversion metrics are not relevant to this direct calculation.
• Including the online purchase rate would be appropriate if you were trying to measure the total omnichannel value of a customer, but not for isolating the value of a physical store visit itself. The formula must exclusively use metrics related to in-store behavior to accurately answer the question.