Strong emphasis on the physical stores combined with customers’ increasing online presence require comprehensive marketing metrics that capture the full impact of each activity
Media items are the biggest performance driver in media ROI. Sellforte’s AI finds the best promotions and marketing messages for each channel, helping retailers to tailor their promotion assortment for different audiences.
Campaign-specific media ROI
Campaigns resonate differently between each customer segment. To maximise campaigns’ bottom line impact, managers need to recognise what is the campaign-specific media efficiency.
When downloading a campaign and media plan you can forecast with Sellforte upcoming months in terms of sales. Sales forecasting is the ultimate tool for preventing unpleasant surprises at the stage when there is nothing you can do about it.
Specialty retailers’ customers have well-defined needs and strong top-of-mind perception about different options at hand. Positioning, timing and presence in the right channels play a crucial role within the industry, providing sustainable competitive edge in marketing for those companies who understand their customers the best.
Positioning. Specialty retailers face a challenging price image competition. On the other hand, customers want their products for as cheap as possible, and on the other hand the brand should remain prestigious. Finding the best promotions requires thorough analysis of which customer segments each discount attracts, how it affects normal-priced products’ sales and what is the combined short- and long-term sales impact. Sellforte helps specialty retailers to:
- Monitor which promotions help to win new customers without decreasing the CLV for the existing customer base
- Reveal each promotion’s short- and long-term effects (e.g. cannibalization, stock-up & basket halo) on normal-priced sales performance
- Appear as a premium brand that knows its customers’ preferences
Timing. Strong brands attract organic traffic on their own, but to achieve the full commercial potential of each campaign managers need to tap into the latest consumption trends on weekly basis. Seasonalities, Google search popularity and weather data integration into the Marketing ROI metrics helps the retailers on one hand to understand year-over-year changes in sales and marketing performance, and on the other hand predict with high certainty how to maximize results with future media and campaign plans. Sellforte’s software enables:
- Recognising the seasonal and weekly trends during which the retailer’s media investments have the highest ROI
- Including historical weather data and weather forecasts in the analytics as one of the indicator in past results and future predictions
- Import Google Trends data into the system to monitor demand variation and support SEM-optimization
Presence in the right channels. Even the strongest brands with relevant promotion assortments have to compete for consumers’ top of mind. Although consumers are spending more and more time online, allocating media budget to online channels won’t be the best solution for most companies. For the majority of specialty retailers, the most profitable customer segments can be won (and lost) in offline channels that act as effective touchpoints throughout the decision making journey. Winning consumers’ top of mind requires advanced analytics that are able to attribute sales and margin uplifts for each media on daily level. With Sellforte, retailers can:
- See the Media ROI for all channels on overall level, in different campaigns and across different geographies
- Synchronize media investments with campaign days that best resonate with the consumers
- Target direct marketing and leaflet distribution to postal codes with the highest ROI
High shopping frequency, diverse customer segments and thousands of SKUs require coherent marketing strategy that communicates superior value proposition to the customers on weekly basis. Recognising what are the retailer’s star promotions, what are the weekdays with the highest media ROI and how brand marketing affects customers’ shopping behaviour make the companies more agile and adaptive in the constantly changing consumption environment.
Star promotions. Looking at each promotion’s sales metrics during the campaign provides only a partial picture of the total promotion effectiveness. Especially in the grocery sector, retailers need to take into account how different discounts affect the normal-priced products’ sales performance within the same and across other product categories, during and after the campaign, to uncover what are the most profitable items in each campaign. Sellforte Marketing ROI -solution shows:
- What is the incremental sales and margin uplift for each media item
- What are the main drivers of effectiveness/ineffectiveness for each promotion (cannibalization, stock-up, vendor funding, waste etc.)
- How to allocate ad space between different product categories to maximize each ad’s ROMI
Weekdays with the highest media ROI. One of the key factors in marketing effectiveness are the starting days for different campaigns. To reach the full sales potential, campaigns need to be synced with customers’ buying patterns by analyzing traffic and basket size impact during different campaign starting days. By attributing sales and margin uplifts for each channel on daily level, retailers can determine what are the best weekdays for e.g. weekly promotions, LC-campaigns or mega-campaigns for planned media-mix. Sellforte’s UI helps grocery retailers to:
- Monitor how much incremental sales and margin each media investment brings on daily level
- See if overlapping marketing activities include channel synergies, or should the resources be allocated differently
- Recognize the most effective weekdays for each campaign (e.g. weekly campaigns on Thursday, mega-campaigns on Monday)
Brand marketing. Customers’ perceptions about the retailer’s prices, assortment variety and the brand itself influence both the conscious and subconscious triggers in the consumers’ decision making process. Calculating the concrete impact for the branding campaigns requires advanced cleaning algorithms to exclude the tactical activities and external factors (such as weather, store openings/closings and macroeconomic changes), but it provides profound insights about consumers’ preferences. By combining qualitative data (e.g. surveys and interviews) with Sellforte’s long-term sales and margin metrics grocery retailers can:
- Find out what are the key product categories driving the consumers’ brand selection
- Compare different branding campaigns’ impact on long-term sales growth
- Align marketing strategy with constantly changing consumption trends
Results from our cooperation with Stockmann Delicatessen
Identified +5% points margin improvement potential in promotions
Identified +50% improvement potential in marketing ROI
Sellforte helped Delicatessen to break down silos between marketing and merchandizing