There’s no question information is power, especially when it comes to targeting shoppers. Companies like Kantar and Marketing Lab, among others, specialize in providing insights to help retailers better align their shopper research, store ops, merchandising and upper-management buy-in with vendor products and programs.
The ability, or more emphatically, the willingness of chain management to translate this information into actionable sales steps for their stores is critical. However, it seems most can’t or won’t do it.
MarketingLab’s recent retail survey reported that 85% of chains have been participating in vendor-funded shopper programs. However, less than five percent of those feel they are successful in incorporating insights into action. This is a grim rate, indeed, especially given the effort and money involved.
Why do these marketing insights appear “lost in translation”? Did the chain not understand the information? Was there directive from Corporate on how to best align those with sales goals? Was the vendor at fault for not providing more guidance?
The answer is probably a combination of all three, but most likely the third: vendor at fault. We say that because we, ourselves, have been guilty of this in the past.
We admit we have conducted exhaustive (and pricey) studies of a client’s category or products, matched the findings nicely with a retailer’s customer profiles, then handed the whole kit & kaboodle to the chain’s marketing execs.
With a handshake and a big smile, we’re off. But when we call on them again months later, we see the file still sitting on their desks, gathering dust…
This situation is not only a waste of everyone’s time, but goes against the basic premise of the vendor/retail partnership, which is mutual advantage. It’s not that the chain doesn’t want that intel; it’s just that their personnel may not have the creativity, knowledge and even less time to review it and execute relevant programs.
It is then incumbent on the supplier to take steps to ensure their valuable support is both appreciated and executed. We have found that these six simple steps help get action in that area:
- Findings are not enough. Fascinating factoids about a chain’s customer base without relevant implications and proposed next steps is a time-waster. Specific proposed solutions should be part of every research study.
- Work within strategies already in place. Don’t propose, say, an aggressive mobile marketing campaign when the chain has never done one, or is unsure of its commitment to mobile to begin with. The learning curve is too steep to ensure timely and successful results for both client and retailer. Stick with the venues and strategies they are already comfortable with.
- Ensure upper-level buy-in. If the Big Cheese doesn’t like it, or the intel doesn’t fit the chain’s goals, culture or capabilities, it won’t make it to store level.
- Taking it to the streets. Conversely, we have found that field merchandisers — foot soldiers who visit stores frequently– are often instrumental in gaining program execution. In many cases they are the ones in there putting up the POS, running the customer surveys, guiding department managers, etc. In short, making sure the program is given life. Sometimes the influence works upward: an excited department manager tells Corporate he can’t live without the program. (Caution: some chains won’t allow this type of vendor interaction at store level. Get it OKed first.)
- Start small, then roll out (maybe). Don’t go in with the entire enchilada. A big program that involves all stores in a chain is a risky proposition for all. Start with specific stores, districts or other grouping that best align with your target consumer and program. Test small, then increase gradually, measuring results along the way. It may never reach complete roll-out, but at least you’ll have a track record and case history to boast about.
- Address the “YIIFM?” Factor. Competitive and job-security issues are at the top of many retail personnel concerns today. “What’s in it for me?” is a question often asked or at least implied. Be sure to sell in the benefits of their having the program to begin with, or otherwise appeal to the self-interests of the personnel involved. Is it general PR they lust after? Do they want to gain attention from their boss? Is it all a vanity effort with no care for ROI? Go with what floats their boat, and thus avoid the sinking ship.
- Innovation Driven By Consumer Insight Helps Retailers Compete and Grow (blogs.sap.com)
- Driving Innovation with Social Insights (business2community.com)