We’ve all seen those fantastical return on investment (ROI) models that promise to give you absolutely everything you could ever need. Sadly, many of these wondrous models that seem far too good to be true are just that – promises without any real basis in reality or concrete, provable results.
The truth is, every business needs a solid plan designed to ensure they receive their goal ROI. Therefore, securing a robust ROI method that works for your business is vitally important to ensure you are achieving your goal. It also won’t hurt in securing that bonus and hitting your personal targets too!
Follow these rules to fast track your ROI and outsmart your competition.
1. Use Real time SKU level EPOS data / net profit level
There are many actions that will be required of your field marketing team to ensure that your products are selling as they should. It’s vital, then, to ensure that you’re assigning real value to each one of these actions taken in store and know how they all affect your bottom-line, both individually and collectively. Ticking a box to say something is compliant on entry drives nothing.
2. Capture and interrogate actions at SKU level
A field merchandising team should be doing everything they can to make your products stand out in stores. You need to ensure you have technology that captures each of these actions and analyses their effectiveness. This will help you assess the true financial value of every fixed issue or a new opportunity. This won’t just benefit your products and your team; retailers really value this insight.
3. Intangibles can have benefits…. BUT
…If you can’t measure it then you can’t count it! Why use assumptions, and leave success up to random chance? If your actions and field merchandising strategies aren’t replicable, they won’t be able to benefit you in the future. Success should never be a one-off.
4. Your ROI model should be accessible in real time
You need a strategic field marketing agency that allows you to interrogate your ROI model so you can understand what’s happening, always. As an example, at Logobrand, the in-store data we collect is always available to our clients any time.
What happened last month is too late to do anything about – (and that bonus is already down the pan!) The only thing you should hold on to about retrospective data is what you can learn from it to make your strategy even better.
5. Interrogate the headline
They say the devil is in the details. You can only get a true understanding of the impact of your ROI model by cutting data by time period, retailer, action, SKU and even field representative. You’ll get an accurate idea of the reasons your ROI might fluctuate, and your decisions will be based on value knowledge, not just a hunch.
6. It’s not just a number
Present your ROI in visual ways – ensure your data is presented using simple yet dynamic graphs. Not only does this allow you and your team to easily spot trends and anomalies, you can also see the potential pressure points and implement a fix straight away.
7. Discuss and review your ROI regularly
If your field marketing ROI model is consistent by week and by retailer, it’s highly possible it’s a work of fiction. The only consistent thing about your ROI will more than likely be that it varies. You should already have a plan in which you’ve calculated your desired or expected driving value in each at each trading period. It’s also a good idea to go through this plan regularly and don’t be afraid to tweak it if need be.
8. Act on the results
Data is only as good as the action taken on it. If return is high invest more, if it’s low cut back. Your chosen field marketing agency should have a field team that is flexible and reactive enough to allow this.
It’s also vital to use what you’ve learned to shape your field briefs. Focus on the value driving actions and cut back on anything that is obviously bringing you a low ROI.
9. Know your instore action use-by-dates
How long can a fix or an action in the field really have an impact on sales for? Generally, don’t count on the answer being more than 14 days after a rep has touched the SKU – unless it’s a book stock issue. Any longer than this is wishful thinking and could lull you into a false sense of security.
10. Be transparent with your agency
We’ve saved the most important for last. Your tactical field marketing agency needs to understand focus SKUs, uplift anticipated for promotions and the differing margins at SKU level in each account. You should also be clear about the threshold levels that you need to achieve so it’s clear what good really looks like. If they haven’t asked you for this information, refer back to Tip 1 – Spend Less, Achieve More from your Retail Execution Team – and reshape your model!
ROI is at the heart of everything we do here at Logobrand and we have been constantly evolving our Realtime EPOS-driven ROI model over the last 15 years. It’s robust and shows you the full impact of your Store Support – what other marketing activity can do that?
Contact us today to chat to us about your challenges and how we can help you deliver more for your business for much less!