Three Ways to Boost In-store Sales Using Shopper Insights
Rajeev-sharma-1
Rajeev Sharma
January 19, 2022

In-store behavior analytics drives reliable growth strategies

1. Get closer to your (current) shoppers

More than ever, there is a need to understand your category shoppers to see if your strategy is aligned with them. You may think you know who your shoppers are, but you may be surprised to see how much has changed especially in the past two years. There are categories that have seen 20-30% shifts in gender composition or significant skew towards younger shoppers.

Shifts in shopper demographics may not be the only change. The trip types in which your category is shopped may have changed. Certainly the product preferences may have changed significantly due to a multitude of consumer trends. These impact the in-store dynamics of the category – even the way that the shoppers navigate the category, engage at the shelf, interact with products and make their purchase decisions.

It is thus important to take a fresh look at your category’s shopper behavior fundamentals. How is the category being shopped today? What factors are influencing purchase decisions? What are the prevalent cross-shopping and cross-purchase patterns? Is your category/brand getting enough exposure? What is the biggest opportunity to improve the conversion rate?

Incorporating the latest fact-based insights from in-store behaviors can inform marketing decisions that will resonate much better with today’s shopper.

2. Squeeze out inefficiencies in your marketing spend

This is the best time to challenge the status quo! With so many changes in the shopper and retail landscape, what worked before almost certainly will not be as effective today. Even before Covid-19, without precise feedback a significant percentage of trade and shopper marketing dollars were wasted. Now, it is even more critical to use fact-based insights to drive promotional decisions and to track the ROI.

Start questioning the basics of in-store and shopper strategy. Should we invest in promotional displays? What are the best locations for your displays today – given the shifts in shopping patterns? Can we justify having multiple displays? What is the best combination of displays and price promotions? Do you really need so many SKUs in our category? Should we question the value of the costly category reset that a retailer is planning? How can we motivate a retailer to pay attention to shoppability and conversion issues in your category?

 So much of the trade and shopper marketing dollars are wasted today, that with fact-based insights and awareness of actual in-store behaviors, you could be avoiding major wastes in spending and deploying those dollars to boost sales and profit.

3. Conduct rapid in-store tests with behavioral feedback

In the current market conditions, it may be unwise to skip the critical step of in-store testing before rolling out an innovation. Simulations and focus groups alone simply will not give you the reliable feedback to go to market. Whether it’s a new product or a new marketing/merchandising idea, in-store tests along with measurement of real shopper behavior responses can be the difference between failure and success. With reported failure rates of over 95% for new product launches, without in-store testing you may be rolling the dice with your innovation budget.

AI technology now enables rapid feedback to support much faster and reliable decisions to move forward or tweak ideas, significantly improving your chances of success.

With access to in-store behavior data from millions of shoppers, analytics to tie response data to specific marketing/merchandising strategies and ability to do rapid in-stores tests, take the guesswork out of your growth strategy. Let the shopper behavior insights guide your success in 2022!

 

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