The main topic of this blog is finding a conversion opportunity for your category. A focus on conversion is important because lost conversion and reduced shopper loyalty are strongly related.

A conversion opportunity is a performance gap relative to an appropriate benchmark.

There are 5 key ways of finding a Conversion opportunity, ranging from simple to advanced. Here are some examples:

Outlet Data: “Beans are 35% of our sales to you, versus a benchmark of 40% to similar stores, improving = $ 500 profit per week”

Scan Data: “Total coffee sales per store per week are 20% lower than your competition, improving = $ $2500 profit per week”

Panel Data: “Premium coffee basket penetration is at 12% versus a benchmark of 15%, improving = $ 1000 per store”

Segmentation Data:  “ You are getting 7% less value from Premium shoppers than the benchmark improving = $ 750 per store”

Shopper Funnel Data: “Navigating to Purchase conversion is 60% versus a benchmark of 65%, improving = $ 2000 per store”

To find a conversion opportunity I start with an empty table that covers each of these 5 areas and then fill in as much data as possible. You can find the table in my book.

I then review the data and choose the most robust information as the basis for the conversion opportunity.

Works Cited
Conroy, P., & Bearse, S. (2006). The Changing Nature of Retail: Planting the seeds for sustainable growth. Deloitte Development LLC.