In our analysis of more than 20,000 shopper marketing events for hundreds of leading CPG brands at the top 15 retailers over the last 8 years, we have uncovered 10 best practices that consistently deliver positive ROI. While custom modeling is required for accurate forecasting, our industry benchmarks for the most common shopper marketing programs and tactics by category and by retailer can offer clients reassurance when developing shopper plans for a new brand or brands that are new to shopper marketing. It’s like having your personal Alfred Pennyworth prep the Batmobile with everything you need to be successful.
When compared at the campaign level, a pre-assessment based on adherence to these principles predicted the results within 5% of the actuals. Why the principles may seem simple, they are not always followed. A process driven assessment and budget reallocation to better align with these predictable guidelines can lead to a 30% or more improvement in ROI.
As you are preparing for launch, make sure these best practices are part of your disciplined regimen.
- Bundle complementary brands to create solutions for shoppers and build scale for retailers.
- Forge strategic partnerships to share costs.
- Customize programs by retail format (High/Low vs EDLP).
- Pre store tactics are especially important for High/Low chains.
- “Go Big” or “Go Often” based on category purchase frequency.
- Go big infrequently with high-cost/high lift tactics for seasonal products.
- Use lower cost tactics to promote frequently purchased products more often.
- Leverage shopper to get more from your trade spend (via feature, margin compression, display, bigger display, etc.).
- Be relevant in timing, concept and creative. Seasonally relevant offers, innovative solutions and charity tie ins drive better ROI.
- Communicate to the shopper along the full path to purchase (at home, on the go, in-store and at the shelf).
- Drive traffic with a targeted offer while shoppers are planning trips.
- Leverage in-store messaging to differentiate the brand and close the sale.
- Digital tactics generally outperform non-digital. Make small bets, test and learn.
Over the coming months I will dive into more detail on these best practices starting with solutions, partnerships and customization by retailer which we will be presenting at Shopper Summit on Tuesday, March 28, 2017 with our partners Wendyjean Bennett from Tyson and Dorothy Engelhardt from Pinnacle Foods.
Super shopper marketers not only plan using these guidelines, they accurately forecast ROI by brand, retailer and event, continuously improve their ROI, and subsequently grow their budget, year after year. Contact us to learn how.
Foresight ROI is the leader in shopper marketing measurement, decision support, and software solutions for CPG companies and retailers. To learn more about our measurement, software or industry ROI benchmark solutions, contact us at: contact@ForesightROI.com