Through a special arrangement, presented here for discussion is a summary of a current article from the GfK insights4u blog.
Financial return on investment (ROI) is an important element of any shopper marketing assessment, but it only tells part of the story. A true assessment needs to capture both the short and long-term effects of shopper marketing initiatives, for the manufacturer and the retailer.
Here are four critical questions brands should consider:
1. Are programs achieving short-term objectives? Measuring short-term results vary depending on the brand's primary shopper marketing objectives. Is the brand looking for financial payout or something else -- new product trial, expanded distribution, share growth, category sales growth? Benchmarks should be considered carefully. What may seem acceptable in one retailer or geography may not be enough in another.
2. Are programs contributing to the long-term health of the brand?
- Awareness - What is the program impact on unaided and aided brand awareness?
- Loyalty - What is the claimed future share of requirements among brand buyers?
- Uniqueness - Does the program help the brand to uniquely own key attributes? Do shoppers perceive the brand as differentiated? Do the programs help set the brand apart from others?
- Relevance - How do programs affect purchase intent? How do they help
the brand to deliver against key purchase drivers?
3. Are programs significantly enhancing relationships with key retail customers? Beyond the specific business results, shopper marketing programs should move the needle in how a brand is viewed by its retail customers. Are retail customers bringing valuable and unique insights to the table? Does the retailer perceive the brand as the go-to supplier in the category? Is the brand's role with the retailer expanding? Is the vendor gaining greater access across functions and at more senior levels?
4. Are partners' objectives being accomplished? Similar to their own objectives, a brand must take a similar approach for the retailer. How does a brand's shopper marketing efforts help grow the category? Is it helping the retailer partner gain share from other channels and competitors? How does it help grow share of wallet or increase market basket? Does it bring in critical new shoppers, or drive visits and purchases among their core shoppers?