Importance of retail execution
Imagine you are at a store, doing your weekly shopping. As you get to the checkout counter, you look at the rows of candy and magazines. Without thinking twice, you pick up some chewing gum and some candy and add it to your basket. By adding the gum and candy to your basket at the checkout counter, you made your purchasing decision on the spot, based on impulse.
70% of purchasing decision is made at the Point of Purchase (POP). The POP is the time and place where consumer, money, and product come together.
In our daily life, we form impressions about brands through touchpoints like news, interactions with our friends and family, and advertisements. These touchpoints are vital as they inform consumers of the choices they have when purchasing a product. Consumers evaluate brands based on what they need and select a brand at the time of purchase. A brand that gets its POP marketing right thus has a higher chance of being the brand that gets chosen at the checkout point.
What is retail execution?
Retail execution includes all tasks that lead to a correct application of strategy at the POP. It is the combination of activities that guarantees that the brand is in the correct channel, with the right customer base in the best place in the store.
Retail execution involves the following:
1. Increasing product visibility by bringing it directly onto the shelf
2. Using retail data to drive merchandising
3. Predictions based on shopper demand
4. Designing and executing effective product introductions and promotions
Why retail execution
There are a number of reasons why customers switch at the POP, like:
1. They cannot find the product
2. They found another product or a promotion
3. The storeowner recommended a different product
4. Their friends/family recommended a different product
With the right kind of retail execution, it is possible to minimize these threats to the product, ensuring that it is constantly visible to the shopper.
By analyzing shopper demand, a retailer can enhance product rotation and predict shopper demand. This can lead to an increase in sales, and thus, profits. By designing effective promotions, a brand can attract new customers. The right products and promotions can enhance such customers’ shopping experiences. Not only does this further boost sales, it also improves the brand’s relationship with shoppers.
Through retail execution, one can also expand their product portfolio based on the shoppers’ needs and demands. Depending on the shopper profiles in each retail store, one can decide what products and packages can be sold in which outlet. It is imperative that there is 100% availability of products in the stores, as a variety of options leads to increase in sales.
How it works
What retail execution does is that it converts theory into practice. It brings to life the numerous planograms that are created in order to give space to a particular product in a certain part of the store. With retail execution, the brand’s vision becomes a reality.Despite multiple channels like web browsing, or liking and following a brand on social media, or talking to their customer service, nearly 85% consumers prefer to shop in-store. This means that the brand has a huge opportunity to directly reach out to and appeal to shoppers.
When performed right, retail execution brings the brand’s products into the spotlight, thus getting it shoppers’ attention. By increasing interaction with shoppers, and learning about their likes and dislikes, a brand can increase customer loyalty. This directly drives sales and helps increase profits.
Brands can also influence a shopper’s buying decision by having display packaging, promotions, advertisements, and salespeople at the POP. High traffic areas within retail stores must be used to promote products. However, the brand’s POP plans must be well-managed in order to ensure that consumers will see a uniformity in their programs, as inconsistent execution can lead to a cost impact of up to 5% of annual sales.
Conclusion
Retail execution provides a two-way interaction between the customer and the brand in order to benefit both parties. Through execution, companies can access retail data and alter their strategies to counter any inefficient moves in real time. It provides accountability and the option of being flexible in order to make the most of growth opportunities. Execution is also vital to deliver a consistent customer experience that brings together sales, marketing, and customer service. Focusing on customer satisfaction by means of POP marketing and product portfolio can highly improve a brand’s chances of being visible and becoming the brand that is chosen at the POP.
