campaign compliance is low, retail localization

Why is in-store compliance so low?

According to research conducted by Phillips, Foster & Boucher, the average percentage of campaigns that achieved full compliance for 2010/2011 were an average of 29% across eight different retail verticals. Only 21% of retailers independently monitor campaign compliance, and 79% just “assume” in-store displays are being executed. Factors such as lack of monitoring, lack of responsibility, and over complexity in the retail merchandising process contribute to this lack of awareness.

campaign compliance is low, retail localization

Roughly half of all in-store campaigns are seen as successful. What’s more shocking is that most retailers do not often attempt to uncover the cause of an unsuccessful campaign. Without monitoring down to the store level, there is little room for feedback, meaning there is no way to accurately measure which programs are reaching customers.

Where is this breakdown occurring?

69% of respondents say that the message is lost between the brick-and-mortar store and headquarters, partially due to the fact that their goals are not always in alignement. Within the store, display is often one of the lowest priorities, following customer service and merchandising. Display work is typically done only “if there is extra time”. Retail store staff is generally best at performing routine tasks, which contradicts the idea of creating an innovative and interactive store display. Having understaffed and misguided stores leads to different ideas of in-store execution.

Now the good news. With the right suite of visual merchandising management solutions, an accurate merchandising planning process is attainable. With these tools, communication becomes clear and precise, and retailers save time and money. Visual merchandising management solutions enable retailers access to real-time information needed to carry out accurate localized campaigns to their stores.

When the right product and messaging is delivered to the right store, at the right time, on the right fixture, retailers can drive the customer experience envisioned in the original planning process.