How do I convert browsers to buyers?

Q: What is a good shopper-to-buyer conversion rate for a specialty store? How do I figure out my store's conversion rate and improve it?

A: The percentage of shoppers at specialty stores who make a purchase averages 40 percent, according to a 1999 study by Boston Consulting Group. But that's just an average dependent on many variables.

A store selling jewelry or appliances will have a much lower conversion rate than one selling small-ticket items, notes Neil Stern, a partner with McMillan Doolittle, a retail strategy firm. A mall store will have more walk-in traffic, and thus a lower conversion rate, than a free-standing "destination" store.

Since conversion rates vary so widely, the best method is to make a baseline measurement for your store and focus on improving from there.

Your conversion rate is the number of purchases made in your store in a given time period divided by the number of shoppers visiting the store during that time.

Your point-of-sale system can provide data on the number of transactions. To find the number of people, you can conduct a time-consuming manual count or invest in traffic-counter technology that will enable you to perform frequent checks.

Once you know the rate, look at your store from the customer's perspective and ask, "How can I make it easier for customers to complete a purchase?"

Shoppers buy because they find in your store the right combination of merchandise, price, presentation and service, says Karl Bjornson, senior manager for consulting firm Kurt Salmon Associates. When shoppers don't buy, it's often because they couldn't find what they wanted -- possibly because of a deficiency in inventory, signage or store layout -- or because they wanted more information and didn't get it, perhaps because sales associates weren't available or didn't offer assistance.

Conversion rates are a key measure of your store's success at connecting with consumers. And since an increase of three to five percentage points in your conversion rate can mean a 10- to 25-percent increase in sales, improving your conversion rate can quickly make a positive impact on your bottom line.