How do you consistently measure the ROI of your shopper marketing programs? This question weighs on most manufacturers. In fact, they are struggling with methodology, tools, and even the metrics they should be using to evaluate success. Before you measure your ROI, it’s important to consider your overall ROI strategy.
Four critical questions manufacturers should think about:
Are the programs achieving short-term or long-term objectives?
If it’s short term, then merchand ising will most likely play a significant role in how you measure ROI. If you’re looking to drive revenue, be sure to watch your investment in tactics that may not drive in-store merchand ising. If you’re looking to grow brand loyalty at a specific retailer, the investment and time needed to accomplish your goals will take longer. Your ROI should reflect those metrics.
Are you accomplishing your objectives – and those of your retailer?
Successful shopper marketing programs are a win/win situation for both the manufacturer and the retailer. Your brand s should look to enhance the total category or store image while increasing market basket or driving frequency.
Are the programs contributing to the long-term health of the brand ?
While short-term volume spikes are important, consider the impact on awareness, loyalty, uniqueness and relevance for your brand s
Are the programs enhancing relationships with your key customers?
Shopper marketing can have a “softer ROI” by improving relationships with key retail partners, resulting in more interaction with senior-level personnel. Shopper marketing can go a long way in improving thought leadership – which can sometimes be more valuable than dollars.
What does this mean for you?
Start with the end in mind. As you begin to develop your next program brief, clearly define and communicate your objectives. This will allow you to identify the best possible strategies and tactics to accomplish your goals and produce a profitable return.
Some content provided by Retail Wire: What’s Your Shopper Marketing IQ by Gary Schanzer, May 2011
