One of our customers is a major retail chain within the sports industry. Like most others, they run frequent campaigns. To increase both sales and traffic, they have used the first zone of their stores to display promotional products. Here, the shopper has always found a variety of products on offer. The problem is that the first zone has been clotted with campaign products from all categories, which easily can be perceived as confusing and not inviting.We consider this a thing of wanting too much. Our customer worries about not having enough to offer every individual shopper, and therefore focuses on everything instead of something that works. Preparing for campaigns can also be time consuming. Products will be moved around, posters will be hung up. If a campaign fails, the store ends building up stock levels.Our hypothesis was that the sales would increase if we optimized the first zone and gave it fewer products. In addition, we used posters and well stocked displays to give the campaign a clear focus. This is because we know these factors will have a very positive effect on sales:
- The best products
- At the best location
- With well stocked displays
- And good POS material
Analysis and implementation
In advance, we carried out a store diagnosis which involved analysis of traffic, range and sales. Based on this, we selected the best selling campaign products in two categories and used identical POS material with photos and a clear price message. We tested this in 10 stores in two campaign periods. Does that sound as an easy thing to do? It was actually easier, both for the shopper and the store.
With this simple test, sales increased by 154%. Make it easy. Fewer products, clear priorities and posters with clear pricing and a message that does not can be misunderstood.
- We removed products with low stock turn
- We selected the best seasonal products and gave them the best space
- We gave the products a strong price message
- We used dominant POS material
The outcome of the optimization were fantastic! By focusing on fewer best selling promotional products in one category, with well stocked displays and dominant POS material, sales increased significantly – up to a 154% for the test products. The improvement over the rest of the chain’s stores showed that they by implementing this across could have made another €100k worth of revenue – on just one campaign.The optimized promotional area accounted for a 12 percentage point higher campaign share than the ordinary. The test stores also experienced increased traffic and increased average transaction value, up to five percentage points higher than the rest of the chain. At the same time, the test stores had higher total sales – 17 % higher than the rest of the chain. The reason? By placing promotional products from only one category on the promotional area, they increased sales of ordinary priced products.We have solutions that make campaign execution fun and easy to follow up. Would you like to know how you can improve your campaigns? Contact us