Measuring the Returns from Shopper Marketing · Pictographically, this methodology is akin to...
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Measuring the Returns from Shopper Marketing A Case Study www.retailalchemy.co.uk
Transcript of Measuring the Returns from Shopper Marketing · Pictographically, this methodology is akin to...
Measuring the Returns from Shopper Marketing
A Case Study
www.retailalchemy.co.uk
www.retailalchemy.co.uk
Background to the study
A large, well known FMCG manufacturer has historically spent in excess of £1m on Shopper activity per year but, thanks in part, to the granular and highly focused nature of the activity has to date not been able to ascertain if such activity has been a success
A large, well known FMCG manufacturer has historically spent in excess of £1m on Shopper activity per year but, thanks in part, to the granular and highly focused nature of the activity has to date not been able to ascertain if such activity has been a success
Perhaps more importantly, the team were also keen to use the results of such analysis ensure improved effectiveness of Shopper activity going forward. Using any insights gained as the basis of planning rather than relying solely on the experienced based approach that had been used to date
The manufacturer therefore turned to Retail Alchemy to help them with this brief
www.retailalchemy.co.uk
A statistical process that uses various data sources to assess the level of mutual correlation between a dependent (KPI) variable and multiple explanatory variables
“”
Dependent Variable Explanatory variables
Seasonality Price Competitors Marketing
Example equation:
EconomySeasonality
Our methodology: the basics
www.retailalchemy.co.uk
www.retailalchemy.co.uk
Pictographically, this methodology is akin to trying to explain the peaks and troughs in sales by matching up data with a similar pattern. Different stores have different types of activity, resulting in different patterns in sale
www.retailalchemy.co.uk
Key insights: Overall Campaign ROIs at Brand, Retailer and Shopper Activity level
ROI by Brand
£1.17
£1.03
£0.95
£1.00
£1.05
£1.10
£1.15
£1.20
Brand A Brand B
RO
I
ROI by Retailer
£0.20
£1.73
£1.27
£1.03
£-
£0.20
£0.40
£0.60
£0.80
£1.00
£1.20
£1.40
£1.60
£1.80
£2.00
Asda Sainsburys Tesco Asda
Brand A Brand B
RO
I
ROI by Activity
£0.10
£0.19
£0.04
£0.97
£0.97
£3.58
£0.30
£0.73
£8.31
£0.21
£0.19
£0.15
£6.79
£0.06
£1.27
£0.52
£2.27
£1.01
£- £1.00 £2.00 £3.00 £4.00 £5.00 £6.00 £7.00 £8.00 £9.00
Sampling
Trolley Panels
6 Sheet
Online*
Search
Online*
ATM Adverts
Barker Card
Sampling
Online*
Advertorial
Category POS
Sampling
Coupon at till
Trolley Media
Branded Info Barker
ATM/Digital Screens
Asd
a S
ain
sbu
rys
Tes
co A
sda
Bra
nd
A B
ran
d B
ROI
www.retailalchemy.co.uk
Key insights: the value of Shopper vs promotional activity
For small brands, Shopper activity is proportionally more important to sales than promotional activity
So whilst ROI from such activity isn’t quite as a large, its role in stimulating trial of the brand is clear
Shopper activity (together with promotional activity to some extent) help alleviate some of the decline in brand sales that would have resulted had the activity not taken place (grey area)
% Contribution of Shopper vs Promotions: Small Brand
Contribution of Shopper & Promotion over time
www.retailalchemy.co.uk
Key insights: benchmarking performance against other similar executions
Clear that spend plays an important role in determining ROI, with higher spends associated with lower ROIs
There is also a clear halo from digital activity onto sales in physical stores
£-
£1.0
£2.0
£3.0
£4.0
£5.0
£6.0
£7.0
£8.0
£- £10,000 £20,000 £30,000 £40,000 £50,000 £60,000 £70,000
RO
I
Spend
Email 2019
Online 2019
Search 2019
Online 2019
Online Banner 2018
Email 2018
Display 2019
Online to offline ROIs: Digital Shopper Marketing In-store ROIs by Campaign
£-
£1.0
£2.0
£3.0
£4.0
£5.0
£6.0
£- £10,000 £20,000 £30,000 £40,000 £50,000 £60,000
RO
I
Spend
Till Screen 2019
Trolley Media 2019Trolley Media 2017
Store TV 2018
6 Sheet 2019Trolley Media 20186 Sheet 2018
Clear that certain types of in-store media fare better than others for ROI
6 Sheets predominantly perform poorly, whilst more direct forms of in-store such as TV and Till Screens deliver higher ROIs
www.retailalchemy.co.uk
Key insights: the role of store selection in ROI
As one would expect, there is a clear link between the base rate of sale for a brand in store and the ROI that results from Shopper activity, with a threshold base rate of sale needed for the activity to pay back
Store selection for Shopper activity is often at the behest of the retailer, but its clear that poor selection of some stores by the retailer is behind the performance of the Shopper activity with many non selected stores offering much higher rates of sale than those selected
Relationship between store sales and uplift: Brand B Sampling, Tesco
£-
£50
£100
£150
£200
£250
£- £10 £20 £30 £40 £50 £60 £70
Ave
rage
Sal
es p
er w
eek
Sampling Uplift per store
100
436
Greater than covered average
Less than covered store average
Proportion of non-covered stores with rates of sale higher than the average covered store
