What does 'units per transaction' measure in retail?

'Units per transaction' is a key performance metric used in retail that measures the average number of units or items each customer purchases during each transaction. This metric helps retailers understand their customers' buying behavior and can indicate the effectiveness of sales strategies, promotional efforts, or product placement.

By analyzing 'units per transaction,' retailers can gain insights into customer engagement and make informed decisions to enhance the shopping experience. For instance, if a retailer sees a lower number of units per transaction, they might consider strategies such as bundling products, upselling, or improving in-store displays to encourage customers to buy more items per visit.

This metric is distinct from measuring the number of customers visiting the store, total sales figures, or the number of transactions. Instead, it specifically focuses on the quantity of items sold on average in each individual transaction, making it a crucial metric for evaluating sales performance and customer purchasing patterns.