Module5 0 ppt jti measurement 141114 by POPAI UK & Ireland

MODULE FIVE

Display Effectiveness & Measurement

Learn

Aim and Purpose

This, the final unit of the POPAI Diploma in In-Store and Shopper Marketing, looks at what has arguably become one of the most important issues for marketers in recent years – measuring and improving display effectiveness.   This module is designed to help you develop a clear understanding of the importance and methods of measuring P-O-P campaign effectiveness.

MODULE 5 | Introduc5on

More information can   be found in the

POPAI Textbook   See Chapter 8,   page 153

Learn

Module Introduction The focus of this unit is on ways to ensure campaign activation success and use more accurate measures of how shoppers engage with P-O-P displays.     We will explore the use of new Shopper Engagement Metrics as well as useful research techniques to improve campaign effectiveness.    These are the key topics we will cover during the course of the next 45 minutes: Return on investment and Shopper Engagement Metrics Campaign Testing and Evaluation Introduction to Research Techniques

MODULE 5 | Introduc5on

Learn

Learning Outcomes

After completing this module, you will be able to: 1. Explain the three key Shopper Engagement Metrics 2. Compare performance of different P-O-P types 3. Understand the basic principles of test and evaluation 4. Identify appropriate research methods depending on desired outcome

MODULE 5 | Introduc5on

Part 1 ROI & P-O-P Metrics

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Insight

Measuring ROI Measuring the effectiveness of P-O-P advertising continues to be problematic for the industry. But the need for justification around investment on marketing support activities and focus on financial accountability is rising. If you are a brand with a €multi-million in-store spend budget, how do you know what is working and what isn’t to make future spend more effective? Measurement of marketing investments has always been a challenge.   Traditionally, brand marketing has targeted the consumer masses, and proving direct relationships has been difficult, while Shopper Marketing, as the newest addition to the marketing family of nvestments, has some different challenges, as we’ll explore here.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Measuring ROI Though Shopper Marketing promises much in terms of driving demand at the point of purchase, it often fails to deliver because Measuring the effectiveness of Shopper Marketing requires collaboration between brand and retailer to exploit the mass of transactional and consumer behavioural data available.     The old advertising saying: “I know that half of my advertising doesn’t work, the problem is I don’t know which half” also applies to the P-O-P industry and sums up the difficulty of accurately measuring effectiveness.

P-O-P measurement is a hugely complex process.

MODULE 5 | ROR & P-‐O-‐P Metrics

Insight

Measuring ROI

With time constraints surrounding the implementation of some temporary campaign activations there is often not enough time to focus on detailed analysis.

Approaches remain inconsistent amongst industry marketers.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Measuring ROI There is, however, a need within the industry for a better measure of P-O-P advertising’s contribution to sales increase.

Review

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Measuring ROI

There is increasing interest from retailers in the ability to monitor the performance of promotions – in itself a significant challenge for the industry.   The DNA of shopper marketing offers great scope for measurability. This is because it is ‘micromarketing’ not mass, executed much closer to the point of purchase, and within retail. In fact, it is micro-marketing done on a large scale. Large scale is important if we are to significantly impact the bottom line and revenues. If something huge happens in one store on one day, it may be amazing, but will hardly impact the overall result for a brand.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Measuring ROI

(Gross Profit – Marketing Investment) Marketing Investment

Marketing campaigns are investments. And like any smart investment, they need to be measured, monitored and compared to other investments to ensure you’re spending your money wisely.   In simple terms, the best formula for marketing ROI is Gross Profit minus Marketing Investment divided by Marketing Investment.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Return on Investment…Sales uplift

Much of P-O-P advertising’s return on investment is measured simply on the basis of sales uplift compared with non-promotional activity.  This could be measured against different promotional activity independently of each other, to help determine the most effective moving forward, as well as to identify the best combination of activity.   Typically, the measures will be determined between comparable stores with and without promotional activity.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Return on Investment…Sales uplift Summary of Results Total Market (Ave Weekly £ Sales – Wtd % Change) New Planogram Only

New Display Only

New Planogram and Display

Account X

+3.1%

+8.6%

Account Y

+0.8%

+2.9%

+3.4%

+10.5%

+12.2%

Account Z

MODULE 5 | ROI & P-‐O-‐P Metrics

N/A

+9.0%

Case Examples Applied

14 Â

Unilever…Purchase Tracking Increasingly, the use of mobile and shopper technology is enabling brands to establish more direct links between promotional activity and sales in-store. Unilever teamed up with a Southern California grocery store chain for an in-store promotion that leverages mobile to make it easy for shoppers to track qualifying purchases and become eligible to win free concert tickets. The promotion took place inside 36 Northgate Gonzalez Markets with the goal of driving mobile engagements for brands such as Axe, Dove and Ragu.  Mobile users could text in or scan a QR code to receive personalised shopping recommendations and product information, with those spending $50 on Unilever products receiving free concert tickets. For users who have a smartphone, they can download a new Northgate Gonzalez application that was created for the promotion. The app can be used to track purchases so users know how much they have to spend to reach the $50 goal.  “Unilever’s goal here was to support the grocery store at all costs” raising awareness for two non-profits but also helping the retailer build a mobile database and measure promotional performance in partnership with the brand, to inform future decision making. MODULE 5 | ROI & P-O-P Metrics

adidasâ&#x20AC;Ś shopper technology ROI Another example, is that of adidas, a brand which has recently been using shopper technology to track ROI The aim of the project was not only to drive sales to adidas brick and mortar stores but also to assign a value for mobile to in-store conversions, proving incremental increase in ROI as a result of incorporating mobile into their in-store strategy and setting the stage for further mobile advertising investments But how did they do it?

MODULE 5 | ROI & P-O-P Metrics

16 Â

adidas… shopper technology ROI

To attribute the amount of foot traffic to in-store conversions adidas analysed shoppers interaction with the retailer’s mobile website near to the store.   Based on adidas target consumer’s shopping patterns, key information from retail stores, plus relevant industry data, they developed a unique way to measure conversion rates. It was determined that four percent of the people who clicked on a store locator translated into an actual sale for adidas. With an average order value of $80, this means that each store locator click is worth $3.20.   adidas could therefore prove that for a mobile investment of $1M, the value brought by store locator clicks beyond direct mobile purchase was an extra $1.58M. Meaning mobile is actually driving a considerable return on investment of $1.81:$1 in-store. MODULE 5 | ROI & P-O-P Metrics

Black & Decker… ROI Model

Black & Decker also has a well established model for measuring ROI

MODULE 5 | ROI & P-O-P Metrics

DisplayPlan ‘front end’ ROI predictive tool - RoDI Black & Decker… Model By calculating the total investment made versus the sales returns achieved it can identify the payback period and Return on Display Investment.

DisplayPlan ‘front end’ predictive tool - RoDI Importantly, it can then also analyse the RoDI for additional investment projects, such as incorporating a digital screen on the display, versus not including one to determine commerciality ahead of full-scale rollout.

MODULE 5 | ROI & P-O-P Metrics

DisplayPlan ‘front end’ predictive Black & Decker… ROI Model tool - RoDI

layPlan ‘front end’ predictive tool - RoD The Black & Decker RoDI model makes several baseline assumptions to determine the investment return a display makes, enabling it to make ROI predictions, which it is then able to prove against during in-store trials.  By including known data on retail price, retailer and manufacturer margins, estimating sales uplift, time the display will spend in-store and factoring estimates of installation time, merchandising time and a few other relevant in-store cots, it can achieve relatively sound predictive modelling.

MODULE 5 | ROI & P-O-P Metrics

PepsiCo/Walkers…ROI Model

PepsiCo also follows a very similar type of ROI modelling MODULE 5 | ROI & P-O-P Metrics

PepsiCo/Walkers…ROI Model Here, the brand measures base sales against total sales with P-O-P material to arrive at incremental sales and uplift figures

Sales and Payback Projection

From there, by taking into action profit margin for the brand and costs of producing the P-O-P material, is can determine a return on P-O-P marketing investment Brand : A

Base Sales :

£2000 p/w store

POP Material(s) : Thematic + Brand Sign Lift Factor : 33.13%

Incremental Sales

£ 663

C=AxB

Total Sales with POP Material

£2663

D=A+C

Incremental Sales

£ 663

Profit Margin from Brand

25%

Incremental Profit

£ 166

F=CXE

Estimated POP Material Cost

£ 100

Profit after POP Material Cost

£ 66

H=F-G

Return on POP Materials

66%

I = (H G) x 100

POP Material Cost Per Incremental Sales £

£ 0.15

J=G/C

Payback Projection

MODULE 5 | ROI & P-O-P Metrics

PepsiCo/Walkersâ&#x20AC;ŚROI Model Here is an example of their ROI calculation spreadsheet, showing columns to record Cost of Goods Sold (P-O-P costs), Stockholindg data, variable contribution to sales from the promotional activity and, lastly, the final ROI figures as a result of that activity.

MODULE 5 | ROI & P-O-P Metrics

23 Â

Aubuchon…Digital ROI

Measuring ROI is becoming increasingly important for digital P-O-P investment, which typically has much higher marketing expenditure costs associated with it, so attempting to determine return on that investment as accurately as possible before rolling costly display material out to a bigger number of stores is vital.  The North American Retail Hardware Association (NRHA) conducted research comparing sales of specific products in stores that used digital signage for promotion vs. stores that did not. For the research, the NRHA teamed with Aubuchon (Au-bu-chon) Hardware, a large hardware retail chain with 130 stores in the Northeast US. The results of the NRHA test confirm that product sales increase when interactive digital signage is used. MODULE 5 | ROI & P-O-P Metrics

Insight

ROI…Test versus control

Store with   retail display  (Control)

Store without   retail display (Pilot)

Success is typically measured by the net increase in sales and gross margin in a pilot store (or stores) compared to a control group. Success would be confirmed by doing a pilot in one or more test stores compared with similar control stores. The test store would need the right categories of product and the retailer would need to provide transaction level sales data for several periods before the trial started and throughout the trial. The control store would need the same level of competition, the same level of transactions before the pilot and the same average transaction size.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Measuring ROI Some marketers hold the view that there is no science to it – that there are simply too many variables involved.   But there is general agreement that traditional advertising metrics such as reach, frequency and recall are not suitable for instore. For example, being able to recall an advertisement or brand does not mean that you are likely to buy it.

It is difficult to isolate other factors that may also have an impact on shopper behaviour.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Measuring ROI Most businesses still measure how its TV, print, radio, and online ads each functioned independently to drive sales. But it’s also now vitally important to understand that ads increasingly interact. For instance, a TV spot can prompt a Google search that leads to a click-through on a display ad that, ultimately, ends in a sale.    Traditional approaches are backward-looking: It largely treats advertising touch points—in-store and online display ads, TV, radio, direct mail, and so on —as if each works in isolation. Making matters worse, different teams, agencies, and media buyers operate in silos and use different methods of measurement as they compete for the same resources.    This still-common practice, what we call swim-lane measurement, explains why marketers often misattribute specific outcomes to their marketing activities and why finance tends to doubt the value of marketing MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Return on Marketing Investment

Last year, P&G announced a review of its ROI measurement, suggesting that it needed to chose a more optimised media mix, and place greater emphasis on innovation rather than promos to drive greater return from investment in marketing activity, whilst also moving its focus to concentrate more on purchase decision-making related media such as online, social and in-store. MODULE 5 | ROI & P-‐O-‐P Metrics

“The problem is not the total amount we are spending, the problem is the mix.”  CEO AG Lafley, Procter & Gamble

Insight

Spend Effectiveness But some brands are considering alternatives, with marketers focused on demonstrating P-O-P effectiveness against specific insight based objectives.

Performance against objectives

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Spend Effectiveness Really successful shopper programmes demonstrate many other “soft” measures of return on investment such as increased brand visibility and superior shopper satisfaction, together with improved, stronger relationships with retailers and overcoming important barriers to purchase through shopper insights that will lead to much greater sales opportunities in the longer term. Overcome barriers to purchase    Attract new audience to product    Improve relationship with retailers    Increase in-store visibility    Become category leader

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Other ROI measures Core ranging creates a positive impact for store These charts for example show “soft” ROI measures, but this time linked to creating a positive impact on shoppers and store managers, rather than direct financial returns. managers Driving an overall +8% improvement in the ‘appearance’ of the category and making products easier to find 7.6

‘Appearance’ Rankings

‘Ease of finding’ Rankings 7.5

8.2

7.4 7.3

7.3

8.0

7.3

7.8

7.2

6.8

6.6 6.5

6.4

Score out of 10

6.8

6.5

7.8

7.6

7.0

7.0 Score out of 10

8.0

7.4

7.3

7.2

7.1

7.0 6.8

6.8

6.6 6.4

6.2

6.2 6.0 Core

Core & Kit Appearance PRE

Core & Healthy

Avg

Appearance POST

MODULE 5 | ROI & P-‐O-‐P Metrics

6.0 Core

Core & Kit

Ease of finding crisps PRE

Core & Healthy

Avg

Ease of finding crisps POST

Insight

Shopper Engagement Metrics Industry attempts to provide a more accurate measure of how shoppers engage with P-O-P displays and, ultimately, which type of P-O-P advertising drives shoppers to buy has led to the development of the POPAI Shopper Engagement Metrics.  The metrics have been developed in the UK and Ireland following the Marketing at Retail Initiative Proof of Concept work carried out six years ago and the follow-up Grocery Display Effectiveness Study in 2011, with the support of leading retailers and brands including Unilever, Asda Wal-Mart, Morrisons, Tesco and The Co-operative.

Providing comparable metrics to above-the-line advertising.

100% focused on retail marketing.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Shopper Engagement Metrics Until now the design of P-O-P displays and promotional messages has been based on little more than the perceived success of past campaign and in some cases, little more than professionally-informed guesswork.  By finally applying analysis of shopper responses to each item of P-O-P display, the industry is now able to work with a set of metrics specific to in-store marketing.  These provide marketers with insight into the effectiveness of P-O-P display by analysing shoppers who pass, look at, engage and buy from displays during the shopping mission.

Review A worldwide standard measurement of shopper engagement for marketing at retail. Shopper Engagement metrics measure every display in store, recording the shoppers who

PASSED

LOOKED

ENGAGED

with displays during the shopping mission.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Shopper Engagement Metrics The key metrics are Impact, Engagement and Conversion Impact measures the number of shoppers who passed the display as a percentage of those who entered a store. Engagement is a measure of shoppers who looked at a display and the extent to which they went on to interact with it. For example, they read, open, touch and in some cases taste or smell. Conversion is a measurement ratio of shoppers who looked at a display versus the products purchased by shoppers from the display. Crucially, it also provides analysis of instances where shoppers have picked a product up from a display but have then not gone on to purchase it. This is known as the Lost Conversion metric. Review A new set of ratios for effective display measurement

IMPACT

ENGAGEMENT

CONVERSION

This can be calculated for any combination of brand, category, display message, location and height.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Shopper Engagement Metrics The Grocery Display Effectiveness Study began in Asda, Tesco and The Co-operative stores, concluding in 2011.   It analysed 7 million shopper transactions. As part of the project, every item of P-O-P advertising, its message and its associated product was photographed and catalogued, along with its unique location in-store, together with its height.

7 million shopper transactions within the grocery retail environment, working with three of the big supermarket retailers.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Development of Metrics

Shoppers wore ClipCam glasses during store visits. A total of 1,718 shopper journeys were captured and recorded. Video footage was analysed to calculate a performance ratio for each item of P-O-P throughout the store.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Development of Metrics With key aspects of the shopper journey recorded including: the route taken around the store, categories visited by shoppers and the impact of in-store media on their purchase decisions, marketers can access forensic information on the performance and combination of individual P-O-P display type, location and message by category.. Better informing future decision making during the campaign planning process.

1.  Route taken around store 2.  Categories visited by shoppers 3.  Impact of in-store media

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Shopper Questionnaire Demographics Shopping Mission Basket spend – Intended vs Actual Frequency of store visits Review

Store Loyalty Use of Shopping List In addition to the ClipCam technology, a detailed shopper questionnaire was also completed for each shopper. This provided supporting background information and context to each recorded shopping mission including shopper demographics, shopping mission, final basket spend, frequency of store visits, store loyalty and whether the shopper was using a shopping list, or not.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Performance of P-O-P Overall Here are some of the outline findings of the study that provide insight into the broader performance of P-O-P – comparing grocery and convenience channels. Impact as you would expect, given the overall number of P-O-P displays in-store is relatively small.   Interestingly, Impact within the convenience channel is slightly higher, most likely due to the smaller store format and fewer aisles. But also limited by the type of shopping mission normally conducted in the convenience store.

Review

Engagement levels when shoppers do see a P-O-P display is relatively high – over half in grocery and a third in convenience.   It does however highlight that Conversion may not be as high as you would expect. This could be due to issues such as messaging which doesn’t provide the shopper with sufficiently compelling reasons to buy the product, but it may also be due to specific product attributes that are outside of the control of P-O-P. For example, ingredients use, quality of product or packaging issues.

MODULE 5 | ROI & P-‐O-‐P Metrics

Insight

Performance of P-O-P Overall Impact

Grocery Convenience

MODULE 5 | ROI & P-‐O-‐P Metrics

1.2%

Engagement

51.1%

Conversion

38.6% Review

1.3%

33.2%

27.7%

Part 2 P-O-P Effectiveness

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Insight

What makes P-O-P effective? The metrics have already provided some interesting insights into key plus points for improving effectiveness in-store. These include:  Having more than one or two shelf talkers helps to enhance standout   The use of bus stop fins provides good fixture direction and signposting as shoppers walk down the aisle.   Gondola ends merchandised with a single product or offer/message work best.

Review

✓

Having more than one or two shelf talkers enhances standout

✓

Bus stop fins at right angle to fixtures so they   can be seen as the walk down the aisle

✓

Gondola ends with a single product merchandised or a single offer/message

MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Effective P-O-P – Shelf Talkers

The Shopper Engagement Metrics have now provided marketers with a number of learnings about how to improve P-O-P effectiveness.  Shelf talkers are a constant source of discussion amongst retailers especially. But it appears repetition is good.

MODULE 5 | P-‐O-‐P Eﬀec5veness

Review

Insight

Effective P-O-P – Shelf Talkers

Review

However, there are limits. MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Effective P-O-P – Shelf Talkers

Review

Sadly, even the gantry area behind the counter is not safe, as this example also shows. MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Effective P-O-P – Dump Bins Although low-tech, dump bins can still be effective, but they must be located to the side Gondola ends to increase the likelihood of shoppers seeing them They also work well in high footfall areas such as near bakery goods, opposite breakfast cereals and snack bars.  In order to achieve Impact they must also be brightly coloured with the price clearly visible.

1. Side of Gondolas 2. High footfall areas 3. Colour 4. Price

MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Effective P-O-P – FSDUs

Review

When it comes to freestanding display units, there appear to be some clear rules:  Ensure the offer is very clear. Use bright and bold colours Popular brands drive greatest impact and engagement MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Effective P-O-P – FSDUs

Review

In terms of location, it’s important to be in the first aisle of the store MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Effective P-O-P – Premium Display

Review

Premium displays should always be brightly lit and appealing to the   eye like this cosmetics display unit. MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Effective P-O-P – Premium Display

Review

As also demonstrated here within Samsung’s first retail store in Burnaby’s Metropolis at Metrotown, Canada MODULE 5 | ROR & P-‐O-‐P Metrics

Insight

Effective P-O-P – Premium Display

Review

And this time within Rayban’s flagship London store in Covent Garden. MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Effective P-O-P – Bus Stops

Review

As already touched upon, bus stop P-O-P is highly effective in highlighting products to shoppers as they walk down the aisle.

MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Ineffective P-O-P – Hanging Display Interestingly the metrics demonstrate that perhaps one of the least effective types of display is ceiling hanging displays, with shoppers more likely to look ahead and be focused on the shopping task than to look up. This is an interesting insight given how much is currently invested by grocery retailers in ceiling hanging   P-O-P.

Very few hanging displays are consciously looked at by shoppers.

MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Ineffective P-O-P – Hanging Display

The only time when shoppers do look up is when they need assistance in navigating around the store.  Hanging displays do work where the are located down the main aisle of a supermarket store, for example, where shoppers are approaching P-O-P from a distance and their field of vision means they do not need to look up to read communication messages.

MODULE 5 | P-‐O-‐P Eﬀec5veness

Review

Insight

Ineffective P-O-P – Parasite Units

Review

The metrics show that parasite units have very little impact on shoppers. They are often too focused on the main fixture to notice such displays.  In addition, the display type often suffers from a lack of adjacency relevance. Alternatively, it can often be obscured from view by other P-O-P.

MODULE 5 | P-‐O-‐P Eﬀec5veness

Insight

Ineffective P-O-P – FSDUs

Review

Whilst FSDUs have the potential to be a highly effective P-O-P tool, they can also prove ineffective if their implementation is not carefully managed.  Displays placed after category index very low with the Shopper Engagement Metrics. So too do FSDUs which are poorly merchandised or replenished.

MODULE 5 | P-‐O-‐P Eﬀec5veness

Part 3 Campaign Testing & Evaluation

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Insight

Test and Evaluation

It can sometimes be useful for marketers to conduct comparative measurement in order to begin analysing the potential and ultimate success of P-O-P campaigns.  When it comes to pre-testing prior to full campaign rollout, if timescales allow (this is not always possible when working on temporary P-O-P campaigns, due to tight promotional windows), live store testing can provide valuable insight into any design ideas, production techniques or messaging decisions that may show up deficiencies once exposed to a real store environment and real shoppers. MODULE 5 | Tes5ng & Evalua5on

Insight

Test and Evaluation Testing also plays an important role by providing retail partners with added confidence in the effectiveness of proposed campaigns they will be accepting in to store.   However, it is not without its problems. It is expensive. Any learning will ultimately only be limited, with it often possible to only test in a few stores. Testing can also provide competitor brands will early into future campaigns, giving them more time to react.

Test and control is only a simple reference to gauge effectiveness.

MODULE 5 | Tes5ng & Evalua5on

Insight

Test and Evaluation Post-campaign, test and control provides a guide to effectiveness. Differences between similar test stores (with P-O-P display) and control stores (without P-O-P displays) can give an indication to changes in awareness, attitude towards the brand and uplift at the till which could be attributed solely to the impact of the campaign rollout.

There are several factors which may impact on the test rollouts.

MODULE 5 | Tes5ng & Evalua5on

Insight

Shopper Numbers However, there are a number of factors that may affect the results of test-control style analysis models, which marketers must be aware. These can include: Differences in shopper numbers

MODULE 5 | Tes5ng & Evalua5on

Insight

Demographics And differences in the demographics of people visiting the shopper during the period, which marketers are unable to control

MODULE 5 | Tes5ng & Evalua5on

Insight

Store Locations Store location can also be an important factor. Whilst every effort can be made to choose similar stores, even then, subtle differences can have a significant impact on results.

MODULE 5 | Tes5ng & Evalua5on

Insight

Weather Weather conditions are also something that, sadly, marketers have little control over.

MODULE 5 | Tes5ng & Evalua5on

Insight

Competitor Activity

Perhaps one of the most important influencers is competitor activity, both in-store and through other media channels which may have an effect across all or a select number of stores. To rely on a test-control measure for post-campaign evaluation therefore will not present a truly reflective picture.

MODULE 5 | Tes5ng & Evalua5on

Part 4 Research Techniques

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Insight

Research Techniques

The majority of brands use several forms of ongoing research to better understand shoppers, their missions, consumption habits, relationships with specific categories and the brands they choose.     The key thing for marketers to remember is that often there is a clear difference between what shoppers say they do and what they actually do.  Focus groups are used regularly to provide marketers will valuable feedback on shopping habits, attitudes to categories and shopping experiences as well as for testing of proposed concepts for new campaigns prior to being rolled out.   It gives those taking part the opportunity to think in more depth about shopping motivations and gives marketers direct access to shopper feedback.   But the detachment from the direct influence of the retail environment itself can limit its value.

MODULE 5 | Tes5ng & Evalua5on

Insight

Focus Groups

Discussion pushes shoppers’ thinking beyond comfort zones.

MODULE 5 | Research Techniques

Insight

Visual Tracking/Filming The use of Visual Tracking/Filming, as we have seen when we looked at the work conducted by POPAI to develop the Shopper Engagement Metrics can provide valuable insight into the actual behaviour of shoppers in-store.

Provides a view of what the shopper has actually not claimed to have recalled.

MODULE 5 | Research Techniques

Insight

Visual Tracking/Filming

Respondents are asked to conduct a shopping mission while wearing eye-tracking equipment as they shop.  Importantly, it identifies the order of visual activity. For example, whether visuals or message are noticed first.   Researchers can conduct a follow up trace of the filming to give them the opportunity to probe more about the rationale behind their actions in-store.   In recent years, the cost of conducting such research has become increasingly affordable

MODULE 5 | Tes5ng & Evalua5on

Insight

Depth Interviews

Shopper interviews in-store ensures detail of purchase activity is still front of mind.

MODULE 5 | Research Techniques

Insight

Depth Interviews

Depth interviews are often conducted in-store, with researchers standing in the aisle and approaching shoppers as they shop the fixture.  This relatively low cost option enables marketers to shape questionnaire coverage to key objectives only.   They also provide an opportunity to collect data about shopping behaviour that still has a high level of immediacy to actual shopping actions, as the shopper will have only just completed the interaction with the display or purchased from the category – detail is therefore still front of mind.

MODULE 5 | Tes5ng & Evalua5on

Insight

Accompanied Shops

Less disruptive to store and shoppers than intercept methods.

MODULE 5 | Research Techniques

Insight

Accompanied Shops

Accompanied shops offer a form of research that is less disruptive to both the store and shoppers.  Instead of intercepting the shopper in-store, respondents are typically recruited away from the store or before they enter and are accompanied by the researcher, with questions asked about decisions they make during the shopping mission, as they shop or simply observe behaviour.   This method is important because it offers marketers an opportunity to gather shopper comments on reactions in-store in real time, meaning that the ‘why?’ is more spontaneous rather than post-rational.

MODULE 5 | Tes5ng & Evalua5on

Insight

Unassisted/Exit Interviews

Link between actual versus claimed behaviour after purchases have been completed.

MODULE 5 | Research Techniques

Insight

Unassisted/Exit Interviews

As the name suggests, researchers question shoppers after they have completed their shop. Sometimes shoppers will be recruited away from store and set a mission, store plan or specific tasks to follow, and then questioned later once this has been completed.  Alternatively, researchers may choose to simply intercept shoppers as they leave a store to gather data about purchases they have made, areas of the store they have (or have not) visited and details of interactions they made with P-O-P displays.   This form of research has the benefit both of immediacy (the shopper does not have to recall reasons for purchases made several hours or days ago) and can prompt shoppers, why they behaved the way they did in-store and prompt consideration of issues that are not at the front of their mind, such as layout and merchandising.

MODULE 5 | Tes5ng & Evalua5on

Summary

MODULE 5 |

Learn

Learning Outcomes Congratulations. Now you have completed this module, you will be able to: 1. Explain the three key Shopper Engagement Metrics 2. Compare performance of different P-O-P types 3. Understand the basic principles of test and evaluation 4. Identify appropriate research methods depending on desired outcome

MODULE 5 | Summary

Key Learnings

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Key Learnings 1.  2.  3.  4.  5.  6.  7.  8.

P-O-P measurement is complex process Measurement can strengthen case for P-O-P spend Success can be measured by financial ROI Alternative approaches focus on spend effectiveness Accepted industry metrics impact, engagement, conversion and lost conversion Understanding what works and why is vital to enhance standout Testing must consider store locations, shopper numbers, and external factors such as competitor activity Research techniques are becoming more cost effective

MODULE 5 | Key Learnings