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 Is It 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.
Field Marketing is More Effective
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.
Difference Between Solid ROI and Lost Sales
“Per our study (Adweek), in the U.S. 39 percent decide brand choice inside the store and that decision is most frequently triggered by a product demo versus other activities. Twenty-nine percent of shoppers buy products impulsively in-store. How would you rework your marketing if you had this information about your brands?
Activating brands in-store is the single biggest investment most manufacturers should make today, and using a shopper insight-based approach will be the difference between solid ROI and lost sales.”
In Store Demo Campaign
Any field marketing manager can easily figure out the complete cost of in store demo campaign. Understanding factors that contribute to return on this investment is a little more challenging. Most brand builders realize that the product sales during in store demo are only one piece of this puzzle. While it is easy to measure it is only the tip of the proverbial value iceberg.
Another contributor to in store demo profitability is the product residual sales uplift that often lasts weeks after initial event. You need help from the grocer’s POS data or your distributor”s sales reporting to detect and measure it. Keep in mind that grocers benefit greatly from your in store demo investment, as these events lift sales of an entire product category and promote more traffic in their stores. Your demo reports data also has value to both grocers and distributors, and can be used to incentivise them to pool your information resources together as it enhance the value of this information for all.
Brand Awareness contribution of In Store Demo
Lastly, the brand awareness contribution to profitability of in store demo is often targeted, but rarely measured. We have borrowed a methodology from CAC (Customer Acquisition Cost) calculations as it is commonly used in digital marketing to simplify brand awareness contribution estimates and incorporated it into the Demo ROI Calculator available free of charge.
To build this Calculator, we analyzed data collected during thousands of in store demos, including sales numbers for demonstrated products, day of the week variations of foot traffic during the events, and number of shoppers who tasted a product without purchasing it. We also looked at follow-on sales of these items for four-five weeks after the events. This data is a critical asset in your drive to secure more and better shelf space in the stores.
Retail transactions done online afford customers, wholesalers, retailers and even the manufacturers, the luxury of conducting business anywhere at their own convenience. With speed and accuracy, operations can be carried out smoothly - one can therefore see the dilemma traditional independent grocers face. The concerns about falling traffic in your stores are very real as over 71% of consumers trust that they can find better prices online.
So how do you as a traditional retailer survive and most importantly thrive amidst the disruption and turbulence caused by ecommerce? Below are some ideas to increase sale in retail stores.
The first key to survival is to retain and increase foot traffic in your store - this is one of most important grocery store marketing strategies. The good news is that 94% of retail sales are still conducted in brick and mortar stores. Even with the ease of ecommerce, people still prefer a physical experience, a relationship, an interaction with the product or the retailer. This is what defines us as humans - our desire to interact.
The Major Keys to Survival in this Volatile Retail Environment
One of the best strategies to boost number of customer visits in your stores is to leverage this human desire to interact and to discover new experiences. Try to re-imagine your store as an event space which your customers see as being a fun place to visit - not just the place they need to go for weekly provisioning. Promoting limited time price discounts (TPR) on popular and well known products only leads to erosion of margin.
“If consumers come to expect price cuts as the rule rather than the exception, then price promotions lose their ability to boost sales and become unprofitable. “
Consequently, one of the major keys to survival in this volatile retail environment is the creation of exceptional customer experience in your stores. Retail leaders realize that customers now have a plethora of choices available to them. Surely, the store that provides the best experience is certainly where the customers will throng to. In essence, the traditional grocers have the advantage over ecommerce giants in providing quality customer experience through in store demo and other event based marketing strategies.
According to a survey of 1,786 US grocery shoppers conducted by Food Marketing Institute.
“Among all regular food shoppers, brick-and-mortar supermarkets continue to enjoy a clear edge over online grocery retail in perceived performance on key evaluation criteria, especially in providing fresher produce (a top store-selection driver) and better customer service,”
According To a Survey
With the ever dynamic nature of retail today, there is no way you can talk about improving customer experience without including in store demos. This refined tactic helps to draw customers, boost sales of demonstrated products and also improve the sales of other products in that category. To withstand the barrage of online competitors, you have to think of an in-store demo as a network of events rather than one elaborate show. Knowing the right product to demo, duration of each demo and location for the demo are very crucial to your stores survival. In order to measure the impact of in store demos on your stores’ Sales Per Customer Transaction, you have to consider
Understanding return on investment for these promotional strategies can go a long way in attracting the sponsors for them. Analysis of data, collected effortlessly by your POS, holds the key to leveraging vendor’s promotional budgets for increasing foot traffic in your stores. Any quality in store demo agency or vendor’s field marketing organization collects valuable data specific to the demo events they conduct. Cross referencing POS with demo data can produce empirical evidence, that would entice vendors to demos in your stores all day long, and that will lift:
In retrospect, arming yourself with the right information and tactics will give you sufficient leverage in the unstable 'waters' of retail. Reaching out to your customers, giving them the very best and improving on your operations are essential tips for relieving the pressure of online competitors.
Every day, there are many customers who look for companies they can keep purchasing from and brands that can cater for their needs and in turn, increase their loyalty. As a brand owner searches for customers to love his brand, customers also look for brands to love.
Many customers choose a brand because of what their friends or relatives have said concerning the brands while some choose a brand based on reviews they have read on the internet via blog posts about the brand. With the limited time available to make choices, some customers simply find a brand and company they love and they stick with it.
So, as a brand owner, what is required to make customers like and eventually love and remain loyal to your brand? Just as human relationships are built on mutual understanding, a brand owner must understand the needs of his customers and make sure that his products provide solutions to those needs. Also, as a brand owner, you must build relationships with your customers and interact with them effectively.
Brand Creates a Difference
It is every business owner’s dream to have their brands which they have worked on tirelessly to be accepted byconsumers. In order to create brands that will be accepted and loved by consumers, you must know your consumers and know what they like. This can be achieved through surveys and polls.
As a brand owner, you can engage your customers in conversations whether face to face or via telephone or the internet. The more you speak with your customers, the more you get to know them and their preferences. The more you connect with a customer, the higher the chances of increasing the customer’s brand loyalty.
Customer’s brand love increases when a brand is experience based and not product based. When a brand caters for the need of a customer, the customer is most likely to be satisfied and happy thereby, increasing the customer’s love for the brand.
In addition, when a brand creates an emotional connection with consumers, it leads to a deeper sense of brand loyalty and advocacy.
Discounts and Special Offers
It is no longer a new thing that discounts and special offers bring more sales and increase the likelihood of a brand getting more awareness and consumers. Some producers think that offering discounts and special offers devalue their products and this in turn makes their brands appear cheap. Discounts are a helpful tool that can increase brand awareness and increase sales if used in the correct manner.
There are several clever ways to make people buy your products and many successful companies make use of discounts and promotions in a strategic manner to increase their revenue. Without discounts and special offers, many customers who might later become loyal customers might have never bought your brand.
Discounts and special offers, if properly and correctly run, can help increase long term profitability. Discounts, if used often, can become less effective and customers might wait till another time when your brand has a discount before they make purchase and this can lead to low profit rate.
In Store Demonstrations
In order to increase sales on your brand, your in store demonstrations must appeal to your customers. One quick way to start this is to change the job description of a salesperson to that of a consultant, an expert and a friendly person. Customers become more interested in your brands when they encounter a salesperson who is knowledgeable about the product and can answer questions effectively, giving necessary insight and details as at when needed.
In store salespersons must have the ability to connect with customers in a friendly and memorable way that will make them feel satisfied and in turn increase their likelihood to return some other time.
Also, you must figure out how to present your products in a very unique way that is different from your competitors’. Customers get fascinated by something new and just a little tweak can help boost sales and increase customers’ loyalty to a brand. One other important feature is the checkout. As much as possible, try to avoid keeping customers in long lines as this can discourage customers, resulting in many purchases getting abandoned.
Create a sense of community for your customers. You can organize events that can bring your customers together and can help them learn new things and discuss about your common ground.
Customer Service for Buyers
In order to promote sales and gain customers’ loyalty, customer service is an important feature that cannot be overemphasized. Many consumers expect brands to provide help even before they buy a product and after they make purchase. Customer service is a form of customer support that occurs throughout the whole buying process. Every interaction with a customer offers the opportunity to impress and convince customers to buy your brand. Create social support for your customers by utilizing customer service effectively.
Question 1: why do brands matter to consumers?
Brands are important to customers because it helps them identify what they like and what they dislike. As a result of trust and consistency, customers are more likely to buy the brands they are familiar with than one they are not familiar with and this in turn increases their loyalty to the brand. It saves customers decision making time. For instance, when a customer goes to the mall to buy a household appliance, instead of getting acquainted with new brands, he simply does a quick job of picking out the brand he favors and saves himself a lot of stress and time.
Question 2: how to attract customers to buy your brand?
When you have a brand that you need customers to buy, you have to make sure that the product is solution based. Customers will opt to buy a product that they know has the solution to their needs. Identify your client, think about what makes the person happy or relieved and make it available. Have a good knowledge of your industry and a firm understanding of your product. Customers will be interested if they know that you are knowledgeable in your field.
You must also know your customers. For instance, if your brand caters for the needs of the elderly more than the young adults, your target customers will be the elderly and not youths.