Measuring In-Store Displays’ Effectiveness With Science

Posted on February 19, 2015 by Bud Morris
BLOG

Measuring In-Store Displays’ Effectiveness With Science

Posted on February 19, 2015 by Bud Morris
 

The mysteries behind the secret to successful in-store displays were revealed recently, by way of the results of the Compliance Initiative.

 

The Global Association for Marketing at Retail, POPAI, and Quri, a prominent provider of retail analytics and insights based in San Francisco, undertook this study (using the latter’s IMPACT tool) to learn more about in-store execution of displays across the grocery, mass merchant, drug and discount retail channels.
Quri reported on more than 5,000 in-store observations tied to real-time sales data and in-store conditions. Among other factors, they looked at location, inventory and merchandising efforts. Using these data, brand managers sought to relate these elements to sales lift and return on investment.

 

Such real-time, quantifying compliance measurement replaces the considerably less scientific predecessor strategy for measuring displays’ effectiveness, which was essentially reviewing anecdotal results.CBSF blog 021815

 

The results of the Compliance Initiative facilitated a review of in-store promotions’ performance. Ideally, retailers will use them to inform their display planning and forecasting.

 

Highlights of the study include the following:

 

  • While most retailers believe displays are being executed, unfortunately, many are not. “And thus,” says POPAI interim president John Anderson, “companies are losing sales revenue.”
  • On average, only about half of the stores executed the planned display, as defined by the consumer packaged good manufacturer, properly.

 

  • On average, power wings/sidekicks were the tactic that gained the most secondary distribution.

 

  • Endcaps were, on average, the most likely to be executed according to plan. Endcaps also scored big for significantly outperforming other vehicles.

 

  • Displays reliant upon store personnel for implementation were the most likely to be executed according to plan.
  • Consumer packaged goods manufacturers need to be aware of the realities that exist when trying to implement displays in overcrowded, under-staffed retail outlets.

 

POPAI and Quri announced their Compliance Initiative findings at the POPAI Industry Leadership Conference in Lake Buena Vista, FL, in late January.