Summer is fast approaching, bringing retailers a host of traffic-driving opportunities: from pre-vacation shopping and families looking for leisure activities during the long holidays, to a rise in tourist numbers and the annual back-to-school retail rush. Each of these – and more – provide retail organizations with an opportunity to drive profitability via a solid marketing strategy.
And brick-and-mortar retailers have an opportunity to better leverage technology in order to more effectively measure the impact of their marketing campaigns. Therefore, to make the most of the summer spending, now is the time for retailers to spring clean their approach to store marketing, while ensuring that their strategy tracks and drives ROI for physical locations.
Here are some areas that senior marketers should address, which will enable them to benchmark the strength of their campaigns in the store environment:
Understand the key objectives
The first step in strengthening any marketing strategy is to have a clear picture of the outcomes. What should a successful marketing campaign achieve?
One of the key retail marketing drivers is improving traffic: if a store simply isn’t attracting enough shoppers, then marketing spend should be focused on driving traffic.
However, it is also important to understand what happens as a result of marketing-driven traffic. If traffic is high but conversion is low, marketers need to understand how customers behave when they reach the store. There may be issues with product lines, pricing, store layout or staffing, which are impeding the success of marketing campaigns. A problem can only be solved if its causes are recognized, and there are likely to be multiple factors at play.
Use technology to get closer to customers
As we’ve previously mentioned, customer insight is key to making sure your marketing strategy drives ROI. Technology such as traffic-counting solutions can provide vital detail into how shoppers use the store, and campaigns can be crafted around those behaviors. And the most sophisticated solutions on the market leverage location-based technologies, which accurately track how shoppers move around a store, and how much time they spend in each place.
In addition, technology can be leveraged within the store environment to help marketers influence shoppers at the shelf edge. From mobile point-of-sale devices to in-store beacons, data can be employed to create a more personalized service, and increase the relevance of marketing offers, based on a shopper’s location and behavior, in real time.
Make sure marketing converts
Aside from understanding how shoppers move around a store, retailers can use technology to identify where and how shoppers are converted. Driving in-store traffic is the start of the marketing process; however, turning these shoppers into buyers is critical.
Technology makes it possible to evaluate which parts of a marketing strategy are prove to be effective. It may be the headline markdown sale that pulled the customers in, but are the items on promotion the ones they actually left with? And what else did they look at or purchase? Once this behavior is understood, marketing efforts can be refined, to ensure a clear strategic link between campaigns and commercial outcomes.
Conducting a campaign without analysis is fruitless. How can it be executed better next time if its performance is not benchmarked? Measuring ROI is critical, and marketers should actively report on a campaign’s progress, benchmarked against previous performances and, if applicable, from store to store.
For all marketing campaigns, retailers should monitor store traffic before, during and after, and compare it against stores in similar markets. They should also see how factors outside of their control, such as news-driven events or inclement weather, affect business.
Spring clean your marketing strategy with ShopperTrak
To ensure marketing strategy is built on customer insight and delivers tangible results, retailers need the technology to track customer behavior and measure ROI. ShopperTrak Analytics Suite collects, compares and analyses data from every area of a retail business to deliver a clear picture of how stores are performing.