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Indicia Staff
Indicia Staff 25 June 2018

Measuring in-store marketing effectiveness – your questions answered

With the recent advances in technology and data, retailers are now able to optimise their in-store marketing. Here we help you understand how you can measure in-store marketing effectiveness

Indicia Staff
Indicia Staff 25 June 2018

With the recent advances in technology and data, retailers are now able to optimise their in-store marketing. Here we help you understand how you can measure in-store marketing effectiveness

Despite the time and money retailers spend on in-store marketing, it has always been notoriously difficult to determine its effectiveness.
That is, until now. In recent years, technology and data have paved the way for more accurate measurement, and have given retailers the chance to optimise their in-store marketing.

So, how can we measure in-store marketing effectiveness? And in what ways can retailers benefit? We quizzed Steve Lowell, our Director of Insight and Data, to find out.

Q: What are the current problems with measuring the effectiveness of in-store marketing?

A: Retailers are producing a lot of in-store marketing and are attaching big budgets to it. However, it’s not always easy to see whether it’s shifting the needle or driving incremental sales.

There’s a reason for this. Traditionally, brands have relied on qualitative measurement. For example, pulling together a panel of customers, or speaking to shoppers as they leave the store.

This can provide a sense of what’s working in terms of brand awareness, but can rarely offer an indication of how the in-store collateral has driven sales.

With the rise of new technology and the increased availability of data, all this is changing. Retailers can now expect better results and are therefore looking for more scientific approaches to measurement.

Q: How will brands benefit from more effective measurement?

A: Recently, there has been a shift towards zero-based budgeting and flat marketing budgets. So the time is right for brands to start taking measurement more seriously.

Put simply, better measurement means brands can be smarter with their money – and optimise their in-store marketing to drive more sales.

Q: So, how can brands measure in-store marketing effectiveness?

A: Well, there are a couple of ways of doing this. Firstly, image detection and eye tracking tools provide a means of measuring dwell time at the shelf.

Using image analysis and a deep learning algorithm, these tools allow a brand to monitor a customer’s movement and behaviour in store. We can see how long customers stand in front of a shelf and whether they pick up certain products. We can see whether they walked past a POS piece, or interacted with it.

This approach really helps retailers to see what’s working and what isn’t. It also enables them to optimise their marketing – and improve sales.
We’re also using regression modelling to test scenarios and measure effectiveness.

For example, we can use modelling to see what would have happened if a certain type of POS hadn’t been used in store. Then, compare these results against a store that has used the POS to gain a clearer view of its effectiveness.

Q: Are brands looking at any other approaches?

A: Yes. Some global brands are now creating concept stores that allow them to measure their POS before it’s rolled out.

We work with a number of clients who are using VR and AR technology to visualise their in-store marketing ideas. This makes it possible to gather customer views, and measure the effectiveness of in-store marketing, before it even goes live.

Q: Going forward, how do you think these measurement methods will change?

A: Realistically, it will take a while for these measurement techniques to become widely established. The technology is evolving and we still have a way to go.

That said, we are really excited about these new methods and techniques. At KMMS we’re already seeing what can be achieved, and how retailers are improving their sales as a result.

Hopefully, this quick Q&A has provided you with some useful information on measuring the effectiveness of your in-store marketing.

If you have any further questions for Steve, or our wider team, please get in touch.

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