The proof is in the pudding, as the saying goes, and especially so when you are talking ROI for marketing programs. We’ve posted often enough about the value of metrics and measurement, and nothing is quite as satisfying for a marketer than to see those sales needles jump in-store.
That’s because no matter how brilliant or elegant your marketing plan is, if it doesn’t play in Peoria (or wherever your target market is) then you’ve failed. The ability to have it work in-store — where the rubber meets the road — is where it counts.
This is especially so when you consider that in-store marketing has recently surpassed the $18 billion mark and is projected to grow significantly in the next five years. Regardless of the relevance and performance of primary drivers (see last week’s post), over 70% of buying decisions are said to be made in-store .
Savvy retailers then partner with their vendors to ensure they are keeping a sharp eye on the results of their programs. Unfortunately for most retailers, developing a program template that achieves reliable results is still a work in progress. According to MarketingLab, most claim less than half of programs are successful, but as with much of media, the question is: which half?
The chart below reflects the interesting results of what promotions and merchandising activities seem to work best:
To us it’s not surprising that “Seasonal Programs” are the most effective , with almost 30% of responses. After all, if most shopping is done on impulse then “what’s hot now” is certainly a key motivator. We would combine this with the “Short Term” stat because, again, it’s the now-or-never inpulse that drives sales.
Within the seasonal focus we would add themed promotions. We’ve found that when you build an event and display around a well-executed theme — even ones as mundane as “Christmas in July” “Winter Wonderland”, “Fruitful Fall”, or even “Fiesta Days” –customers are drawn in by the visuals (retailtainment) and the promise of a bargain.
When it comes to the second most effective in-store tactic being media-specific, again, we are not surprised. Radio, especially, which does not require shoppers’ active attention and plays a strong subconscious influence, is the most cost-effective and easily-measurable.
VOXPOP, a leading in-store media company, reports that over 40% of shoppers who listen to in-store radio are influenced to buy differently. They also report 300%+ lifts from their campaigns.
Finally, the higher percentage of success with in-store as well as department-specific programs reinforces that a cohesive effort that goes across all store departments is the best.