Despite the obvious advantages of capitalising on the public mood in support of local retail, coupled with fuel savings and ultimate dilution of multiples’ power, the actual return per outlet is usually too low to justify the necessary investment in independent retail.
For this reason, suppliers that rely on traditional financial measures of ROI will find it difficult to realise the full potential of local shops.
However, a simple shift in perspective can help.
Given that a local retailer can be more flexible in terms of meeting shopper needs, and with the right support can be more willing to encourage customers to engage with the product in the store, it remains for the supplier to find a viable financial formula in order to justify the investment required.
Suppliers that can take the creative leap into regarding the instore experience as part of marketing of the brand, not only making media investment more effective, but optimising a final stage on the way to purchase, with ‘hands-on’ contact providing an effective way of managing expectations, have to gain a competitive edge over those who focus primarily on the major multiples…
In other words, why not regard say 50% of the store-visit costs as part of the national media advertising budget, and thus make the sales per independent outlet vs. the ‘reduced’ instore-investment compare better with other uses of brand resources?
Independent Retailer Month provides an ideal opportunity to run the numbers on a 50/50 basis on current promo-programmes, evaluate the ROI results and take steps to focus more effort next year, while those already using this approach reap the rewards over the next four weeks….
For this reason, suppliers that rely on traditional financial measures of ROI will find it difficult to realise the full potential of local shops.
However, a simple shift in perspective can help.
Given that a local retailer can be more flexible in terms of meeting shopper needs, and with the right support can be more willing to encourage customers to engage with the product in the store, it remains for the supplier to find a viable financial formula in order to justify the investment required.
Suppliers that can take the creative leap into regarding the instore experience as part of marketing of the brand, not only making media investment more effective, but optimising a final stage on the way to purchase, with ‘hands-on’ contact providing an effective way of managing expectations, have to gain a competitive edge over those who focus primarily on the major multiples…
In other words, why not regard say 50% of the store-visit costs as part of the national media advertising budget, and thus make the sales per independent outlet vs. the ‘reduced’ instore-investment compare better with other uses of brand resources?
Independent Retailer Month provides an ideal opportunity to run the numbers on a 50/50 basis on current promo-programmes, evaluate the ROI results and take steps to focus more effort next year, while those already using this approach reap the rewards over the next four weeks….
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