Measuring Retail Marketing Campaign Effectiveness: 3 Innovative Solutions
Discovering innovative retail software solutions for measuring retail marketing campaign effectiveness might initially seem daunting, but retailers can begin by focusing on three essential metrics that determine the triumph or efficacy of the promotional efforts.
1. Establishing the customer-sale connection
Upon initiating a marketing campaign, a retail Enterprise Resource Planning (ERP) system can assist in pinpointing the ideal customers to target, utilizing their past purchases or demographic information. Crafting a tailored marketing campaign geared towards a specific subset of customers becomes feasible through channels such as email, direct mail, or a mobile application.
But imagine a scenario where customer data from your retail ERP system wasn’t utilized for devising this campaign; instead, a third-party database was employed for customer selection. Whatever the approach, evaluating the campaign’s effectiveness remains imperative.
This evaluation hinges on data capture. How can you ascertain whether a customer who received a personalized promotion actually utilized the coupon to make a purchase? What if a customer made a purchase without being offered a customized coupon, or if a generic coupon lacking identification was sent?
Gauging the campaign’s effectiveness initiates with meticulous planning to link customers to sales. Among the innovative retail solutions to achieve this lies the incorporation of unique serial numbers or coupon codes on promotions, connecting them to individual customers or specific demographic groups. Alternatively, a location-aware mobile app could be employed, tracking customer visits during the promotion. Retailers can also measure the redemption frequency of a particular customer or group in response to the coupon.
Customer data capture constitutes the primary metric for gauging campaign effectiveness. Once customers redeem coupons or respond to promotions, this data can be leveraged to refine the targeted customer group for future marketing endeavors.
2. Contrasting promotion response with a baseline
Suppose the same promotion was dispatched to two distinct customer demographics. While customers within demographic A exhibited less anticipated response, demographic B showcased heightened engagement with the campaign. Consequently, focusing on demographic B is decided upon; however, assessing whether the promotion and the response from demographic B indeed led to increased sales is imperative.
Measuring retail marketing campaign effectiveness requires establishing a baseline for comparison. This necessitates an understanding of product performance in the absence of marketing coupons or promotions. Evaluating the standard sales of the item serves as a yardstick to determine if a promotion resulted in increased sales.
This metric is relatively straightforward to acquire. Through analysis of sales data, it’s feasible to discern which demographics or customer types responded more favorably to the promotion.
3. Assessing the customer’s total promotion-induced purchases
Measuring retail marketing campaign effectiveness transcends the sale of the promoted item alone. Another innovative retail solution for measuring campaign efficacy involves analyzing a customer’s total purchase during the promotion. A targeted promotion could incentivize customers to make additional purchases totaling $100, encompassing items beyond the promoted ones.
Hence, the effectiveness of a marketing campaign isn’t exclusively reliant on the sale of a specific item. Retailers should scrutinize a customer’s complete shopping cart, including both promoted and non-promoted items, and compare these totals to non-promotion periods.
Use your retail POS solution to track and plan campaigns correctly
These solutions represent merely a few available for measuring retail marketing campaign effectiveness. While you can devise myriad campaigns, the ability to measure results remains pivotal for measuring and understanding their efficacy and, more importantly, for refining future campaigns to enhance success rates. ArcherPoint’s retail team can help you with the technology to measure your retail marketing campaigns.