How to Improve Conversion Rates in Your Retail Store

Have you ever seen someone walk into your store, look around, and walk right back out without purchasing anything? We all have. And, here’s the bad news. You’re not going to make any money from window-shoppers. What you need to do is learn how to improve your conversion rates.

Obviously, your goal as a budding modern-day retailer is to try and optimize your retail store to encourage more conversions. However, it’s easier said than done though, isn’t it? 

So, we’ve written up a short how-to guide to explain what you’re missing out on, and offer some ideas to improve your chances of converting your customers. Let’s get started.

What does conversion rate mean in retail?

Your conversion rate is the percentage you get when you divide the number of purchases by the number of people who came into your store. To figure this out, you will need to get a counter installed at your door (if you don’t already have one).

Whenever you’re calculating a conversion rate for your brick-and-mortar store, you should know that it is a close approximation rather than an exact number. Your store will often have people coming into your store that don’t exactly count, i.e., your employees, children, people shopping in pairs, couriers, and potentially even riders from Deliveroo or Uber Eats (depending on your business).

Another important metric to consider alongside foot traffic is dwell time—how long customers stay in your store. The longer a shopper lingers, the more likely they are to make a purchase. Tracking and improving dwell time can help you understand how engaging your store environment is and where you might be losing potential sales.

How to work out your conversion rate

Working out your conversion rate sounds trickier than it actually is. All you’ll need is a customer counter (sometimes called a ‘people counter’ or ‘footfall traffic sensor’) and a point-of-sale system that can show you the total number of sales you have made in any given time period. (We recommendLightspeed Retail.)

Here’s the conversion rate formula:

 (Sales ÷ Total Visitors × 100 = Conversion Rate %)

How it works:

• Gather footfall data for a month or any given time period.
• Take the total number of sales completed during that period.
• Divide your total sales by the total number of visitors.
• Multiply that number by 100 (to get the percentage).

Example: You have 2,000 visitors to your retail store across the month of June. In that time, you make 400 sales. 400 sales ÷ 2,000 visitors = 0.2. 0.2 x 100 = 20. In this example, your conversion rate would be 20%.

To get even more accurate insights, consider using advanced analytics tools. Modern people counters can integrate with video analytics and AI-powered software to track real-time traffic, identify peak hours and even distinguish between new and returning customers. These tools can help you make smarter staffing decisions and optimize your store layout based on actual customer behaviour.

Once you figure out your current conversion rate, you can set yourself a goal and start using the following techniques to achieve it. You should note that if your starting conversion rate is really low (think 15% or lower), you should check your marketing. You may be mis-marketing your store, and bringing in shoppers expecting something completely different than what you offer.

How to increase conversion rate

Improving your conversion rate can be done by focusing on optimizing your store layout, employees processes and behavior, and providing retail offerings. Here are our favorite ideas.

1. Set up your store for success

Focus on how your store is set up. Where are the displays? How long does the queue usually look? Does the store look packed to the rafters? Or, is it easy to find things?

Unless you are a discount retailer, you don’t want your store looking like your customers will need to hunt through racks and racks to find things. Instead, set up clean displays that make it easy for shoppers to find unexpected items they just have to have.

Here are some ideas:

• Use your “power wall” wisely. If you’re in the UK, Australia or New Zealand, use your left wall to make a big statement because customers naturally turn to the left when they walk in. However, if you’re in the US (or a country where people drive on the right-hand side of the road), your power wall is located on the right, since most of your shoppers will have a tendency to turn right when they enter your store.
• Remove excess merchandise from the floor (i.e., only have a few items of each size or product on the floor) to keep the store from looking cluttered.
• Mind your decompression zone. What’s a decompression zone you ask? It’s the first five to fifteen feet inside your front door. Shoppers who are in this part of your store are prone to distractions, which is why most experts agree that retailers should keep the decompression zone simple and uncluttered. Avoid placing too many products or fixtures in this area, as people will likely just walk right by them.
• Group complementary products together to encourage cross-merchandising. For example, place socks near shoes or wine glasses next to bottles of wine. This not only inspires impulse purchases but also increases your average basket size.
• Create an immersive in-store environment by using scent, lighting and music strategically. A pleasant aroma, warm lighting and curated playlists can help set the mood and keep customers browsing longer. Interactive displays or demo stations can also enhance the shopping experience and make your store more memorable.

2. Hide your queue

Customers can be easily spooked if they see a lengthy queue. The good news is that there are several ways to fix this.

Put your registers in the back. You’ll notice that many stores do this. Or, get rid of the registers altogether and go mobile. By allowing your employees to ring customers anywhere on the floor, you’ll get rid of your queue altogether. Pro tip: use a solution like Selling on Scanner to implement this.

Of course, if that doesn’t work for your business, simply adding a POS system for retail stores will help you reduce your queue, at the very least. 

3. Staff according to traffic

Many stores will schedule their staff according to hours where the most sales are made, rather than the amount of traffic walking through the door. By switching to heavily staffing when there are many customers in the store, your employees will be able to more effectively help everybody, which will likely cause an uptick of sales.

4. Know that your employees play a huge role in boosting conversions

This point is part and parcel of the previous point. Not only do you need to be well-staffed, but it’s essential that you train your employees well. In terms of increasing your conversion rate, there are some important things your staff can be taught to do:

Have them greet and engage each and every customer in the store

It’s fairly rare for a shopper to engage an employee out of nowhere when they need assistance, so have your staff establish the relationship.

An easy method to ensure that your staff is greeting everyone is to have someone work the front zone specifically to greet people. You could ask your staff to wait near the front of the store, so they can greet people while “just happening” to be folding and tidying up near the front. This method can seem less intrusive than having someone stand at attention staring at people as they walk into your store, which, as we’re sure you’ve experienced before can make you feel uncomfortable, and sometimes pressured.

Train your staff on how to prompt customers to share what they’re looking for

The bulk of this is to ensure that they don’t ask yes or no questions. For instance, “Can I help you find something?” will most often be met with “No.” But, “What are you looking for today?” requires the shopper to engage with the question a bit more, even if the answer is negative.

Put in the effort and mean it

Once your staff member has identified the customer’s wants/needs, train them to go above and beyond in solving these problems. When your employees are putting in a huge amount of effort, they will:

• Most likely come up with a great solution and
• Convince even iffy shoppers to make a purchase.

And, even if your staff is well-trained at this, you can always incentivize them to help you reach your objectives by offering them a prize for meeting the goals. This normally comes in the form of commission which gives employees a percentage of every purchase they help to make. But, you could also offer prizes, additional annual leave or recognise their effort, commitment and brilliance with salary increases or even promotions.

5. Introduce loyalty programs to reward repeat customers

Another powerful way to boost conversions is by offering a loyalty or rewards program. These programs give customers a reason to return and make repeat purchases, turning casual browsers into loyal buyers. 

Whether it’s a points-based system, exclusive discounts for members or perks like early access to sales, loyalty incentives can create a sense of belonging and appreciation. Make sure your staff is trained to promote the program and explain its benefits clearly at checkout or during interactions. This not only increases the likelihood of a sale today but also encourages future visits and long-term customer relationships.

6. Give free samples, nibbles or drinks

Whenever a business offers you a free sample, you feel obliged to do something for them. This isn’t just our opinion, but rather that of Dan Ariely, Behavioural Economist at Duke University. Dan says, quite simply, that: “Reciprocity is a very, very strong instinct.” Which means that if you’re in a position to offer free samples to your customers, they recognize that you’re going above and beyond, appreciate their custom, and will feel more motivated to return the favour and buy something from you.

If you’re selling something that can’t be given away as samples, then find something else to offer. Several retailers are now serving drinks to get people to come and linger.

7. Create bundled deals and expand your product assortment

Strategically combining complementary products into bundled deals can significantly boost your retail store conversion rate. When customers see the value in purchasing multiple items together at a special price, they’re more likely to make a purchase decision. 

For example, if you sell electronics, bundle a laptop with a case and headphones at a slightly discounted price compared to buying each separately.

Additionally, optimizing your product assortment in retail gives customers more options to choose from, increasing the likelihood they’ll find exactly what they need. Just be careful not to overwhelm shoppers—curate your selection thoughtfully to maintain a clean, organized store environment. 

Consider using your POS data to identify which products frequently sell together, then create targeted bundle offers based on actual customer buying patterns.This strategic approach to assortment in retail not only improves the shopping experience but directly contributes to increased retail store conversion rates.

8. Use social proof

Social proof means showing your customers that other people have bought or want to buy your products. The most obvious example is when an online store offers product reviews on its page. You can replicate this in your store as well.

In Amazon’s physical locations, for instance, each printed product tag contains a snippet of a highly starred review from their website, clearly demonstrating that others have bought and loved the product.

9. Create the feeling of scarcity

Scarcity is a well-known psychological trick to increase an item’s perceived value. Scarcity makes something seem special to a customer. There are a number of ways you can make things feel scarce in your store.

• Reduce the amount of merchandise on your floor. Not only does this make the floor feel de-cluttered, but it can make customers think that the item on the floor is the last one in stock.
• Train your staff to let customers know when something really is the last one that you have. It’s an easy sales line that can help them close a deal. Nothing would make a customer jump at buying one of our clothing items faster than knowing it was the only one left and it happened to be in their size.
• Run limited-time promotions to provide a temporary boost in your conversion rate and artificial scarcity. By limited-time we mean very short, not several days or a week. A great example is doorbuster sales on Black Friday. These sales typically only last until noon and/or until the products sell out. Running a one-day-only sale will create a sense of urgency for your customers, making them feel like they don’t have much time to get that amazing deal.

10. Get customers to invest time with you

The more time a customer spends in your store, the more likely they are to purchase something. Recent 2024–2025 research indicates that each 1% increase in dwell time can boost sales by approximately 1.3–2%, though some retailers have seen a 10% or higher lift with targeted strategies.

11. Have a backup plan for products you don’t have in store

Give your customers no excuse not to spend money with you. Have a plan for customers looking for an item that your physical store is out of. You could do this by ensuring that you offer free shipping on any item whenever they’re out of stock in your store. This can discourage customers from walking away from a purchase. 

The associates can also ring customers for that purchase right from the floor on a mobile device so that the customer experiences minimal frustration. Have everything emailed over to them with their confirmation purchase, receipt and estimated delivery date for the item in question.

Usinginventory management software can help automatically update stock levels and streamline the process of offering alternatives like free shipping when items are unavailable in-store.

12. Host in-store events and workshops

Drive more foot traffic and increase conversions by hosting in-store events, product demos or workshops. These experiences not only create buzz around your store but also give customers a reason to stay longer and engage with your offerings. 

Whether it’s a seasonal product showcase, a hands-on tutorial or a meet-the-maker session, events help build community and encourage impulse purchases. Pairing events with exclusive discounts or free samples can further boost sales and customer loyalty.

13. Offer flexible payment options

Sometimes, a limited budget is the only thing keeping a customer from purchasing. If this is the case, consider being more flexible with how you accept payments. For example, you offer installment or layaway options.

14. Streamline the checkout process

The final hurdle in converting browsers to buyers is the checkout process. Streamlining this critical touchpoint is one of the most effective ways to improve conversion rate in retail.

So strive to get rid of friction points during payment. Doing so can significantly boost your numbers, as customers who encounter complications at checkout are likely to abandon their purchase. 

For best results, implement a modern POS system that allows for quick transactions, multiple payment methods, and digital receipts. This optimized checkout process reduces wait times and creates a seamless experience that leaves customers with a positive final impression. 

With Lightspeed’s POS solutions, you can process transactions anywhere in your store, accept various payment types including contactless options, and even save customer information for faster future purchases—all essential elements of a high-converting retail checkout experience.

15. Create brand hype with events and workshops

Transform casual browsers into enthusiastic buyers by hosting regular in-store events, workshops and exhibitions. These experiential marketing opportunities not only drive foot traffic but create memorable connections with your brandthat significantly increase conversion rate in your retail store. 

From product demonstrations to skill-building workshops, these activities give customers compelling reasons to visit and engage. The excitement and community feeling generated during these events often translates directly into higher conversion rates, as customers are more emotionally invested in supporting businesses they’ve connected with personally.

16. Leverage customer feedback to drive improvements

Understanding what your customers think about your products, services and overall shopping experience is invaluable for improving conversion rates. 

So, actively collect feedback through post-purchase surveys, comment cards or digital kiosks at checkout. Train your staff to casually ask customers about their experience and what could be improved. This direct input helps you identify pain points in the customer journey that might be preventing conversions. 

When customers see you implementing their suggestions, they feel valued and are more likely to return. 

17. Offer limited-time promotions

Learning how to drive conversion in retail starts with creating urgency through strategic time-bound promotions.

Seasonal sales, holiday specials or flash deals, limited-time offers motivate browsers to become buyers by creating a fear of missing out. Promote these events through multiple channels—in-store signage, email marketing and social media—to maximize visibility. 

Also, make your promotions genuinely special with meaningful discounts or exclusive merchandise that’s only available during the promotional period. Then, track which limited-time offers generate the highest conversion rates so you can refine your approach for the future.

Key Takeaways

Improving your retail store’s conversion rate is about creating an environment where browsers become buyers. Start by calculating your current conversion rate using the formula: Sales ÷ Total Visitors × 100 = Conversion Rate %. From there, implement strategic changes to boost your numbers:

• Optimize your store layout with clean displays, strategic product placement, and an uncluttered decompression zone to create a shopping-friendly environment.
• Reduce visible queues by placing registers at the back or implementing mobile POS systems that allow for checkout anywhere in the store.
• Train and incentivize staff to greet customers, identify their needs, and provide exceptional service that converts interest into sales.
• Create immersive experiences through strategic use of lighting, music, and scent to increase dwell time and purchase likelihood.
• Implement loyalty programs that reward repeat customers and encourage long-term relationships with your brand.
• Use psychological triggers like social proof, scarcity, and reciprocity (through free samples or refreshments) to nudge customers toward purchases.
• Offer flexible payment options and streamline checkout processes to remove final barriers to conversion.
• Host in-store events and workshops to create memorable brand experiences that drive traffic and sales.
• Continuously collect and implement customer feedback to refine your approach and address pain points in the shopping journey.

When you act on these strategies consistently and measure  their impact on your conversion rate, you’ll transform your retail space from a place where people browse to a place where people buy. Remember that even small improvements in conversion rate can significantly impact your bottom line.