Protect and defend the lead
For now, supermarkets are still leaders in the American food retailing landscape, both physical and online. However, the gap is narrowing.
They can’t afford to be complacent as supercenters, mass stores, and warehouse clubs are catching up, especially in the online grocery domain.
“This suggests these less food-focused channels have been able successfully to leverage the online relationship they initially established in non-grocery categories to win over grocery purchases as well” (FMI’s 2019 U.S. Grocery Shopper Trends report).
What about online-only retailers? The trend is upwards there as well, with around 33% of shoppers now buy from these online grocery retailers ‘at least sometimes,’ more than double the number from 2015.
Meanwhile, Amazon has also branched out to physical stores, either through the acquisition of Whole Foods, the launch of cashierless Amazon Go stores, or even a new grocery chain altogether.
The opportunities in grocery store marketing
In this digital era of Amazon, Netflix and Facebook, people still crave the human experience and connection. And quite rightly:
“Retail anchors a human experience” - The Shelby Report
This phenomenon can be true when there seems to be an unlimited number of choices on the Internet.
So whilst online wins in terms of offering broad selections, it’s not always the best for consumers. Brick-and-mortar stores can capitalize on providing customers some guidance in making purchase decisions. Some grocery store marketing ideas include offering product curation, or featuring products through in-store demos. Sometimes, less is more.
Retailers often forget that they have access to first-hand customer data when shaping grocery store marketing strategies. From the early utilization of this in the form of loyalty programs, now there are even more opportunities to leverage insights and win customer engagement.
The reason to visit a supermarket or store
Customers are increasingly looking for experiences, especially Millennials and gen Z. In fact, the so-called concept of “The Experience Economy” dated back to 1999, and has given rise to a myriad of terms like retailtainment, experiential marketing/retail.
So what is the reason someone would go to a store if online retailers are competing on price and range?
The answer is you can differentiate by customer experience. Think long and hard about what you can offer that online retailers can’t (the same way they probably have thought about you and their point of difference).
Take a look at Costco. They have become famous for “free samples,” which on the surface seems to cost the business a lot but actually results in increased sales. Subconsciously and gradually, consumers have found a very compelling reason to visit Costco, where they will end up making purchases.
Ideas to increase sales in retail stores
With the physical space and the human touch, supermarkets/retail stores can grab those opportunities to provide customers with a better tactile experience, with more curation and interactivity.
A recent Retail Store Tours study shows that “when more senses are activated during the shopping experience, higher satisfaction levels are generated, which helps foster customer loyalty.”
That is why organizing in-store demonstrations to help consumers discover, try, and sample new products is so effective. Not only can they taste, see, smell, and touch the product, they can also interact and have Q&A with the brand ambassadors.
This simple tactic also casts a wide net to help increase sales, namely:
Simplicity of implementation
The beauty of it all is that it is not as complicated to organize in-store demos as you think. There is no need to add dedicated personnel as most supermarkets do not have so-called full time demo coordinators anyway.
The streamlining and coordinating of different people and processes can be left to a technology solution that is intuitive, easy to set up and operate, such as Demo Wizard.
Proven return on investment
As a final note, let’s look at the gains from these grocery store marketing strategies.
First of all, the cost of running in-store demos is covered by vendor brands. Second, there are mutual benefits, namely the lift in sales of a brand and product.
In fact, in-store demos can result in “a 150% lift in same-day sales for a demonstrated CPG item – followed by a 90% lift for that item over the course of the next 90 days.”
This shows that operational executives of supermarkets should consider the long-term gains by thinking of in-store demos as a “network of events.” Just as how you would evaluate the effectiveness of advertising, think beyond the single instance and consider the “halo effect.”
With an integrated approach and the right tool, in-store demos can help improve the stickiness of your supermarket’s brand as you improve your customers’ experience. The time to act is now, when online-only retailers are still trying to navigate the brick-and-mortar space.
Schedule an online demonstration of Demo Wizard, or see how it helps streamline in-store demo planning here.
Before you read why you don’t get them, perhaps you want to know why you want them.
Supermarket Executives Love In Store Demos
Since you are reading this, it is relatively safe to assume that you already realize the value in store demos bring to your stores, but let me provide some numbers.
Smart grocers love demos because they draw foot traffic, sharply increase the sales of promoted products, and boost sales for an entire category of products. While Retail Industry research shows 150% boost in the same day product sales*, Food & Beverage product demos often report over 400% sales increase, and that makes it one of the most successful Grocery Store Marketing Strategies. Consider additional 90% - 120% residual boost in item sales over the quarter following demo event, all paid for by the vendors, and it becomes very easy to understand why smart grocers want more demos.
The lessons below are distilled by analyzing tens of thousands of demo reports conducted by dozens of CPG brands in thousands of US supermarkets over the last couple of years.
Why It's So Difficult to Schedule In Store Demo
Most supermarkets do not have dedicated demo coordinators whose prime responsibilities are to schedule and coordinate promotional events with vendors. More often than not, it is handled by a person who already have too many “hats” to wear, some with specific measurement of performance. So it is not surprising that her attention is not focused on a number or effectiveness of the vendor’s in store demos.
That leaves Vendors with a very unpleasant task of multiple calls to the same store, and pain in the neck holding the phone while waiting for a “right” person who can give them availability date for a demo event.
Since stores often use Wall Calendars and no workflows, they usually will give only one date/time slot per day for a request. They may use a Google calendar, or a generic scheduling software without workflow coordination, which won’t provide any remedial relief. The more difficult and unpleasant it is for a Vendor to setup the demos in your store, the more likely she will spend her budget funds at a store of your competitors. I do have hard data to support this statement**.
While it may not be economically attractive to add a full time, salaried employee to manage this process, specialized software for in store demo management automation is readily available for supermarkets at an affordable price. Use of such software eliminates the requirement for dedicated demo coordinator to manage scheduling process.
Sometimes the great ideas to increase sales in retail stores are fall flat facing execution challenges. Too often the problems start when a Brand Ambassador shows up in your store and reports to a manager on duty asking for a designated place for the demo table. The response “I don’t know anything about any demo today in my store” deflates the Brand Ambassador enthusiasm and undermines all preceding efforts by Vendor, product Brand Manager, Distributor and your Buyer to create a successful selling event. While the space for demo challenge can often be resolved with with tactful negotiations, the lack of product inventory on hand for a demo, is a soul crasher. At this point all is lost, the Vendor is stuck with the black hole in her demo budget and nothing to show for all the money and effort. It’s time to cut her losses and go with different, more cooperative stores.
Ask And You Shall Receive
Brand managers, who control promotional budgets, frequently have no idea what stores carry their products they would want to promote. Many products on supermarket shelves are sold to the buyers by brokers and distributors, who often do not have access to the brand’s marketing budgets.
Proactive request from the store management, communicated directly to a manufacturer or via your demo agency/partner, often brings surprising number of demos with very little effort. Most samples for in store demos are purchased in store by brand ambassadors at retail price, and reimbursed by the manufacturer. If you offer to charge wholesale price for the samples, a vendor may reciprocate with an offer of multi demo campaign.
Money, like water, flows where it meets the least resistance. The supermarkets that welcome demos in their stores, i.e. make it easy to set up and execute, receive far more promotional funding and get better profit margins than the stores that see demos as distraction and nuisance.
** Request the data. Please enter “I do have hard data to support this statement**” in a message field, and will email it to you.
One of the recurring complaints you would likely hear from Field Marketing Managers and Demo Coordinators is how unreliable are the Brand Ambassadors they have to deal with. In fact, if you ever experienced scheduling a few demos, you have probably endured a Brand Ambassador's last moment cancellation or "now show".
I would like to posit that the Brand Ambassadors' perceived lack of reliability is not necessarily caused by their mercurial personalities, but by the nature of their business and unavailability of appropriate time management tools. Consider the fact that most Brand Ambassadors are independent contractors who try to earn their living selling their personal skills in small time increments. After all, most in store demos only last 3-4 hours. As such, the Brand Ambassadors need to market their services to Demo Coordinators, Brand Managers, etc. as well as delivering these services in stores and events.
It is impossible to estimate how many hours a Brand Ambassador has to market their services to get a single demo for which she can earn $60-$140. This reality forces them to continuously work with multiple Brands, conflicting times and constantly changing dates.
Demo scheduling is a very fluid process that requires a lot of flexibility from all participants, from Brand and Field Marketing Managers to store personnel, product distributor, to Brand Ambassadors. However, the last link of this chain, the Brand Ambassador, is the least equipped to deal with the demands of flexibility. The byproduct of a flexibility is uncertainty. In the case of Brand Ambassadors it is the uncertainty of being paid for their efforts, while everyone else is paid their hourly salaries. If the changes to dates and times create a conflict with their commitment to other brands they work with, they are the only link in the demo chain who is not getting paid.
Consider the fact that most Brand Ambassadors use a phone, email, Google Calendar and spreadsheets to manage their business commitments and activities, and you will see a picture of a juggler, desperately trying to keep all the "balls" in the air. It is only a matter of time and gravity before some of these "balls", i.e. demo commitments, come down crashing to the floor and cause the last moment cancellations or "no show".
Event Management Software
There are myriads of project/task/shift/etc management services available online today. However, all of them are designed for the owners of these business processes, who are in a position to control steps, tasks and communications. Not for the last link of the process chain, Brand Ambassador, who is on the receiving end of all that "flexibility". Besides, many Demo Coordinators do not use such services either because they do not offer enough specific help for the demo management process, and are not a good fit for other demo management tasks.
Use of the right tool for intelligent scheduling and coordination of ever changing demo requirements can go a very long way to reduce the frustration and "flakiness" of Brand Ambassadors. Additional benefits include:
- increased productivity of a Demo Coordinator who can manage 400-500 demos per month
- controlled automated communications with all involved parties
- greater availability of Brand Ambassador time to you because the use of such a tool reduces the uncertainty of Brand Ambassadors being paid for their time and efforts
- automated generation of BA invoices, payment statements and BA tax preparation documentation
- online demo reporting and data collection for subsequent analysis supporting Field Marketing ROI calculations.