Chapter III – How To Execute & Measure Shopper Marketing

In this chapter, shoppernewsblog explores how to execute and measure shopper marketing campaigns. In order to provide our readers with some guidance, we introduce a 7-step shopper marketing framework. Moreover, we explain which metrics to use best to measure a campaign’s effectiveness.

Our shopper marketing framework consists of 7 steps which apply to both retailers and manufacturers.

First, a company must identify individuals who shop at their stores (retailers) or category (manufacturer) and segment them according to the following criteria:

  • Who are they (demographics)?
  • What is important to them?
  • How and where do they shop?
  • What is their relative value?
  • Are their needs satisfied (expectation gap)?

Second, based on their relative value and on the likelihood to satisfy an expectation gap, the company selects the shopper segment to satisfy (i.e. moms in a certain age and socioeconomic level).

Once, a company knows which shoppers to target, it becomes important to look for the right partners:

  • Who targets these shoppers?
  • Who has insights into this specific shopper segment?
  • Who would benefit from collaboration (strategic fit)?

It is important that there is a strategic fit between a retailer´s / manufacturer’s corporate strategy and the segment of shoppers it wants to target. For example, a retailer specializing in fresh produce might not be interested in price-sensitive shoppers looking for the best bargain.

After choosing appropriate partners for the campaign, goals must be determined conjointly. Only if all parties involved agree on the objectives, a shopper marketing campaign can be successful. Determining the goals starts by defining the shopper insight to satisfy which in turn should be aligned with each company´s corporate strategy.  In order to be successful, any shopper marketing campaign must be relevant to shoppers, unique to differentiate from competitors, customizable to the specific store layout, and consistent with the participating companies’ overall strategy (strategic fit).

The fifth step is to define execution. This includes agreeing on marketing tactics, merchandising / category management tactics, and operational tactics to apply. These three dimensions must be defined along the path to purchase to allow for an effective shopper marketing campaign.

Sixth, the shopper marketing campaign is implemented according to the predefined plan.

Once the campaign is completed, it is evaluated against the pre-established goals and targets.

For a sample shopper marketing program plan, please click on the picture on the right. It introduces a sample plan for a retailer aiming to satisfy moms shopping for fresh produce products. The campaign’s goal is to “drive both penetration and frequency with perishables with core and mid-loyal shoppers”.

The complete sample shopper marketing program can be found in the Shopper Marketing Best Practices: A Collaborative Model for Retailers and Manufacturers report published by the Retail Commission on Shopper Marketing ¹.

Measuring a shopper marketing campaign’s effectiveness is a complex process due to its holistic nature. Nevertheless, Shopper Marketing magazine presents a straightforward approach to measuring shopper marketing campaigns in its April issue.

The framework includes four metrics namely, transaction data, shopper behavior, attitudes and beliefs, and non-shopper returns. The metrics in turn contain measures for both retailers and manufacturers. According to a campaign’s scope, different metrics are included. For smaller campaigns, the investment might only justify transactional data whereas larger campaigns should be evaluated along all four metrics.

To enlarge the measurement framework, click on the picture above.

In Chapter IV we introduce a new trend in shopper marketing: Shopper Solutions.

Also consult our post Why Shopper Marketing Matters – The Tragic End Of A German Drugstore Giant” to read how neglecting Shopper Marketing brought down a retail giant.

Did you find this chapter helpful?

Please comment so we can continuously improve the content.

Sources:

¹http://www.thepartneringgroup.com/pdf/Shopper%20Marketing%20Best%20Practices%20Report%204-2010.pdf

http://www.shoppermarketingmag.com/home/

Stahlberg, M. (2012). Shopper Marketing – How to Increase Purchase Decisions at the Point of Sale, Second Edition. London, England: Kogan Page Limited.