According to a survey by RSR Research, the biggest barrier to improved collaboration between brands and retailers around in-store marketing is a "lack of visibility" into in-store execution. Rather than improved execution tools, however, the respondents saw technology, particularly improved measurement methods, as the best way to bypass this issue.
According to the report, "The logic goes, 'If I don't have to rely on in-store employees, I have a greater chance of getting consistent in-store execution.'"
The report, Enabling the Shopping Process: In-Store Marketing for the Empowered Consumer, was based on a survey of 88 retailers and manufacturers in spring 2009.
Survey respondents reported best way to create a "compelling, consistent shopper experience" involves tapping into customer-facing technology. The technology not only provides personalization for the consumer but also increases the chance of in-store compliance. But because technology is expensive, especially at the store level, collaboratively funded efforts are required both to bring in the money as well as "the best insights from both parties."
While the economy has slowed technology investments, the wish list for new technologies around in-store marketing focuses on those measuring program effectiveness, rather than new innovations to reach consumers in stores. RSR said this reflects "a shift in perception around in-store marketing programs: few seem to question the value, and are willing to make investments if it helps them identify exactly where the value lies. This is a warning to solution providers: for the retailers that ultimately own the real estate, 'results' need to be measured not in eyeballs or dwell time, but in hard dollar sales increases."
In its conclusion, RSR said that some basic capabilities must be in place to successfully measure the value of in-store marketing programs.
"First, the right capabilities need to be built in the right order - recognizing that this is an iterative process," the report states. "It's useless to pursue personalized communications if you don't have the content or the delivery channels first."
Second, RSR thinks its best to bring as many parties to the table as possible when it comes to funding and planning in-store marketing campaigns. "This applies both internally and externally - the more coordination you have, the higher quality the campaign, and the more likelihood of getting all of the funding you need to make it happen."
Finally, RSR said even in cases where brands drove the funding, survey respondents reported that retailers retained responsibility for execution.
That's why it's even more paramount to let in-store technologies resolve execution issues.
"It's easy to blame in-store execution when an in-store campaign does not yield expected results," the report states. "But it's a lot more honest, and better for everyone in the long term, if that can be eliminated as an issue. The solutions that enable in-store compliance tracking - from store execution management to video analytics - are more powerful than ever, and retailers are missing out on a big opportunity by choosing to live with the problem."
Discussion Questions: What do you think of the potential of in-store compliance tracking technologies to resolve execution issues and drive collaboration between brands and retailers around in-store marketing programs? What challenges may be faced in measuring the value of in-store marketing programs?