Actively Managing your Capture Rate. By Bird & Blend Founder, Mike Turner.
Bird & Blend explain how they use Springboard’s Capture Rate technology.
Don’t just take our word for it. Mike Turner, founder of Bird & Blend explains how understanding Capture Rates can benefit retailers.
“At Bird & Blend Tea Co. we know that our customer experience is so great that once a customer crosses our threshold, it’s very likely that we have a customer for life. At the same time having a product that is a little confusing initially, means that we need to work extra hard to encourage potential customers into our stores, to give us the opportunity to introduce them to what we do.
This challenge of trying to grab people’s attention when they are bombarded with tens of thousands of notifications, marketing messages, calls, conversations and other distractions every day is a fundamental challenge in every business. Usually, the proportion of potential customers who start some sort of interaction with a business is the lowest of the core ‘sales-driving’ KPIs, and that presents a huge opportunity.
Online companies measure how many people visit their website; sales-based companies track how many people they have contact with, and where these numbers are low they look at ways to increase them. Capture rate is an important reporting number for retail businesses. It is the proportion of potential customers passing outside of the store, that you’ve managed to capture the attention of and encouraged into your store. It’s a number that most retailers pay no attention to, and even those that do often think that they only have limited control over.
This is a big mistake. As one of the three key influencers to how much goes through your till (alongside conversion and ATV), it is hugely important to understand your capture rate if you want to know why your revenue is increasing or decreasing and impact that.
Beyond this, as the number which is often the lowest and most ignored, it is also often the easiest one to use to make a big difference. e.g. If your capture rate is 5% and conversion is 25%, adding an extra percent onto the capture rate is going to make a far bigger difference to your bottom line than onto your conversion. And that is before you even factor in the potential to turn that captured customer into a long-term fan!
At Bird & Blend, we think that the number of people who walk into your store can be actively controlled. Obviously, you need to do the basics that everyone knows about – the storefront needs to look great and the displays need to be enticing, but you can go beyond this. Bird & Blend tries to create theatre that is visible from outside of our stores so that people want to come and investigate. We stand outside and bring part of our experience to people walking past, whether this is by offering samples or just talking to people. We focus our local marketing efforts on giving people a reason to come into our stores and put on events that have nothing to do with tea to give those who aren’t looking for us a reason to come in.
What isn’t measured, isn’t managed. So, at Bird & Blend we train our teams at every level on what capture rate is, along with how they can impact it individually. We then expect our employees to take an interest in how they have affected the store capture rate every single day that they are working. After all, once someone has given us their attention and come through our door, they’re probably going to be a fan for life!”