In-Store Promotions: A Case Study
A manufacturer identified the most effective channel for promoting awareness and driving sales from a new point of sale fixture.
- The company had invested in new, branded in-aisle displays that prominently featured their products.
- Initial results from the displays were promising, but executives knew that greater promotion was needed to drive the sales lift needed to pay back the investment in the fixtures.
- Using the Test & Learn™ approach, the company compared the effectiveness of multiple promotion methods including direct mail, in-store signage, and in-store greeters to determine which most effectively increased sales from the new display.
- APT's solutions generated insights that enabled the manufacturer to realize $1MM+ in incremental sales through identifying the most cost-effective promotional lever to drive shoppers to the manufacturer's new display.
The Company
An international category leader, retailing in over 50,000 locations
The Challenge
The client came to APT in the midst of a major capital investment in rebranding the in-store experience. They needed to identify the in-store levers (in-store labor, signs, coupons, etc.) that would most successfully increase awareness of the new fixtures and drive conversion. There was disagreement within the company over which promotional methods worked and which did not.
The Solution
The company used APT’s Test & Learn™ software to design a test of the three promotional activities hypothesized to have the highest ROI: direct mail, in-store greeters, and in-store signage. The company was able to drill-down on test results to precisely identify the demographic and store characteristics associated with the success of each promotional tactic.
Next, the client used Test & Learn™ to build a predictive model that forecasted the impact of rolling out each promotional activity across the network of doors where its product was sold. The client was able to recommend optimal in-store marketing techniques on a store-by-store basis to each of its large retail partners to drive traffic to its new in-store fixtures.
The Results
The company’s management used these results to develop a highly tailored rollout strategy that optimized both in-store promotion decisions and multi-channel marketing techniques. These improvements to the rollout plan resulted in $1MM+ in incremental sales for the client.
