In-store promotions are an effective marketing strategy for every retailer. They are used to bring more sales volume and build awareness. A successful in-store promotion brings along increased brand awareness and loyalty, bigger revenue, and more sales per square meter.
There are various channels available today through which sales promotions are derived. Some of these channels and methods include in-store displays, investing in retailer’s ads, and online advertising.
After running a promotion campaign, a brand anticipates higher sales volume. To check whether your in-store promotions performed as planned, there are metrics to gauge success.
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Knowing The Baseline To Measure Success
77% of consumers, along with 60% of Millennials, have fostered relationships with specific brands for over 10 years. So, understanding the KPI for the effectiveness of promotions is important. To do so, first establish a baseline performance. Track the product performance and learn the volume and calculate the impact on performance. For example, you usually sell 1000 items in a week without promotion. So, know that 1000 products per week is your baseline. Analyse how much you are able to sell during the promotion.
There are more metrics that are effective in measuring the success of your in-store promotions.
1. Customer Satisfaction
The higher the customer satisfaction, the more the customer loyalty. A satisfied customer is more likely to stick to your brand and avail services. So, measuring this factor is important. Do it by collecting data and evaluating how many customers were satisfied with your overall product and promotion.
Check if any of your items go out of stock quickly. Check people’s reaction about your product online. Creating a quick survey for customers and asking questions about their experience are other ways to measure customer satisfaction. In this way, you can hear the truth, analyse how the best POP displays for brands in 2021 and other promotional channels worked for you.
If you are using a robotic POP display like Tokinomo, you can also receive relevant data in real-time and see how many people passed by and the number of device activations.
2. ROI (Return on investment)
Promotions are investments. So, the investor should analyse how much ROI they have achieved.
If you are not happy with the results, then pay attention to incremental customer sales. They should increase. Make sure you consider all the related data such as development, sales staff training, and external advertising. Also, try investing in innovative robots that give life to your products. They can convert a normal shelf to a speaking shelf and grab the attention of customers when they arrive near to the product. If you are new to this concept, check these robots for in-store promotion.
3. Sales Volume
To accurately measure the sales volume, you need to compare it to the baseline. Check the current sales volume by calculating the difference between new sales and baseline sales volume. It is called lift in Promoted Item Sales.
Overall Sales Lift+ Lift in Promoted Item Sales + Halo – Pull Forward – Cannibalization
In the above formula, halo is the effect on the second item while promoting the first. On the other hand, cannibalization is the process when the promoted items affect the sales of other items. Pull-forward is stocking up of the item on sale. It might cause a spike in sales of the product during the promotion and a reduction in sales after the promotion ends.
Source: Cross Cap
4. Set Goals
Before launching a promotional campaign, you must have set the objectives. What did you want to achieve: boosted sales, increased brand recognition or both? What does your data show? Have you achieved them?
If it didn’t go well, then also you must accurately measure all the factors at hand. It will be very beneficial for you and your team to identify some or all areas of improvement. A promotion can seem a success on the surface, but it might be opposite for the long-term. The main thing is to set several goals ahead of your promotion and track all the involved metrics.
The Bottom Line
You can also involve the crowd in measuring the execution of your promotions. You can ask them to check how they liked your in-store promotion under use cases such as placement of promotion, pricing and availability, general quality of products & services.
Take into account our tips and tricks and you will be able to implement successful in-store promotions that increase both sales and brand loyalty. All the best for your future promotional efforts.