Measuring Marketing

Chapter 76 Transactions Per Customer

Measurement Need

To determine how many in-store potential customers convert to actual buying customers.

Solutioni

Transactions per customer (TPC) measures the percentage of potential customers that actually buy. The formula is:

$TPC=\frac{T_{transt}\times 100}{T_{trafft}}$

Where

TPC = transactions per customer

Ttranst = total number of transactions in time period t (usually one day)

Ttrafft = total customer traffic in time period t

For example, if you run a retail outlet and a particular day has customer traffic of 1,000 people, and the total transactions for that day is 100, then the TPC is 10%:

$\begin{array}{l}TPC=\frac{100\times 100}{1,000}\\ =10\%\end{array}$

Impact

TPC is a measure of a retailer’s success in converting ...