Some brands will only pay for demos (in store sampling) because the retailers require them to support the "exposure" of their products. Yet many of today’s well recognized brands achieved spectacular results in a very short time by using the leverage of field marketing. Their example shows that investment into smart field marketing/experiential marketing strategy can produce return by far higher than other forms of advertising.

Introduction of In Store Sampling

Brands are always looking for ways to get closer to consumers, especially in this digital era. With the fragmented media landscape, many are turning to “shopper marketing” - delivering messages to consumers when they are in shopping mode and receptive to such content. In-store sampling is among the most effective vehicles to drive consumers towards trial and purchase.
Whilst the path of purchase can vary for different products, consumer packaged goods generally enjoy a shorter conversion path (unlike buying big ticket or discretionary items where the buyer journey may take multiple turns). That means there is a greater chance for field marketing tactics such as product sampling to influence consumer behaviour.

Product sampling effectiveness

When the sampling marketing strategy is considered as part of an overarching marketing strategy, it can deliver great results both directly and indirectly.

Direct benefits

Many studies have proven that in-store sampling produces both an immediate and long-term lift in product sales. There is even a snowball effect in sales if repeated sampling events are organized for a single product. In addition, in-store sampling drives trial of the new product, with a well-established track record of boosting sales of new product launches.
Why is it so effective? As rational as humans think they are, we are still driven by our senses. Hence, one of the key purchase decision factors is the ability to sample the product or see a demonstration, with 83% of respondents agreeing.
Sampling also taps into the impulsivity of shoppers, with nearly 74% of respondents observed to make impulse purchases of the product being sampled. The physical proximity can make forgotten cravings more salient.

Another psychological factor is “reciprocity.” When you are given something, you are more likely to reciprocate. Especially in a high-traffic store, shoppers with a “heightened awareness of the presence of others at the sampling station may feel a level of social pressure to make a post-sample purchase.”

Indirect benefits

If brand awareness is your goal, product sampling can also be a great vehicle to assist your other marketing channels. Executed well, the in-store sampling experience can generate positive word of mouth - the most persuasive source of information for consumers.
Another indirect benefit is that running in-store demos can increase total category sales, not just sales for the sampled product.

 Devising an effective sampling marketing strategy 

As with any business operation, you need a clear strategy for the use of in-store sampling for brand/product activation. An important but often overlooked fact is you need to firstly know what success looks like. By having the right measurements and goals in place, you can work backwards to lay out a plan of attack.

So what are those metrics?

1. Traffic engagement - what percent of passing shoppers stop to taste the product
2. Product engagement - how much time a shopper spend by the demo station
3. T2P Conversion Rate© - what percent of shoppers who taste the product end up purchasing

If your sampling marketing strategy is focused on market test of a new product, review and analysis of captured shoppers comments, may prove the most valuable part of the exercise as they allow to tune your new product characteristics and messaging in sync with expected customer experience. 

Considering the cost-benefit equation, a research paper in the Journal of Retailing advises: “If the incremental cost of a sampling event exceeds 15 times the unit price of the product, the event ceases to be profitable.”

The next step is to then work out a detailed plan by considering the following factors: place, people and process.

Place

As the usual adage goes “location location location”, we can’t emphasize the importance of choosing the right store and right area within the store to run product sampling enough.

Essentially there are two factors: Store traffic and shopper demographics, plus other practical considerations.

And a number of questions for brands to consider:

• Are low-traffic stores worth it? What if they provide a highly targeted audience that is likely to convert?
• Are high-traffic stores always good? What if competitors are also known to be frequently running demos there?
• Does the sampled product match the store’s clientele, e.g. value-seeking vs. quality-seeking?
• Is the physical environment of the store conducive to sampling, e.g. aisle not too narrow, music not too loud etc.?

People

To avoid the trap of “old school demos”, hire brand ambassadors (BA) that are knowledgeable and enthusiastic about the product. Obviously, skimping on this by using minimum-wage BA would yield minimal return.

On the other hand, properly trained BA can effectively convey the product and brand image. This helps in influencing shoppers’ perception of the promoted brands positively.

Process

Running smooth in-store demo campaigns requires coordinating several factors: product inventory, store’s timetable and BA’s availability. The conventional way which involves multiple rounds of calls to different people generates inefficiency and dramatically lowers the ROI of in-store sampling.

Thankfully, there is a better way through using software. The simplicity of demo scheduling software implementation and ease of adoption makes the tool an attractive option. Smart technology enables a smart coordination, which combines lower management overhead with market intelligence and empowers quality BA to do their job.

Conclusion

Like other marketing strategies, in-store sampling is not a set-and-forget thing. Continuously refining the plan based on analytics and data will help brands get the most out of it.

FAQs

Q: How do I keep quality Brand Ambassadors?

A: Reduce their friction and frustration by giving them the ability to self-register availability and certainty of scheduled slots, as well as on-time payments.

Q: Do I need to hire a dedicated demo coordinator?

A: No. You can reduce overhead by deploying smart tools that allow brands to schedule and manage up to 400-500 demos/month

Q: Why aren’t a lot of brands deploying the sampling marketing strategy?

A: Many still think in-store demos are expensive and a waste of time. However, with proper planning and enabling tools, it can help brands build better relationships with stores, BA and ultimately, shoppers.

Q: Can I organize effective demos without hiring in-store sampling companies?

A: Yes. If you’re confident in recruiting BA or already have a database/relationship with promotional staffing agencies, the rest can be effectively handled by using technology to minimize cost.
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Want to see what smart demo scheduling technology can do for your CPG brand? Request a free demo here.

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.
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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. ​

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. 


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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.  ​

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. 

Field Marketing is more effective than any other form of advertising because it can measurably impact sales in a very direct and accountable way. 

“Half of my advertising budget is wasted away. Unfortunately I don’t know which half” is the quote attributed to John Wanamaker, Philadelphia retailer and marketing pioneer. Even with the advent of digital advertising it is difficult to account how ads exposure and clicks translate into actual unit sales. ​