The Retail Landscape: Are Traditional Merchandising Methods Still Effective?

With the many changes facing the CPG industry, it can be difficult to determine which merchandising methods are still viable options for garnering sales. Many retailers and brands alike are constantly asking themselves “Are traditional merchandising methods still effective?”

Here is our take on some of the top traditional merchandising methods that are still being used on a regular basis by most retailers: flyers, experiential marketing, and the checkout line.

Flyers - getting them into the store. While many stores feel as though flyers are a big cost that hopefully can be replaced by digital, many consumers, especially in the CPG sector, are still using them. According to the Globe and Mail, many consumers “like paper flyers because they can carry them around, circle deals and easily access them for price-matching at competing retailers.” That being said, flyers are not as effective for all retailers. The same Globe and Mail article noted that a test done by Sport Chek, meant to determine if a digital focus was more effective, determined that for them flyers were not where the money was. You can check out the full article here: http://www.theglobeandmail.com/report-on-business/industry-news/marketing/digital-ads-may-be-the-future-but-consumers-remain-loyal-to-paper-flyers/article18924774/.

Experiential merchandising - try before they buy. These campaigns have been sprouting up with extreme frequency across North America, and for good reason. But do they work? Well, let’s look at Red Bull as a perfect example. Their 2012 Stratos Jump campaign racked up 52 million view worldwide, and in the 6 months following the campaign, U.S. sales increased 7% to $1.6 billion, and the company sold 5.3 billion cans worldwide in 2013 - up from 5.2 billion in 2012. Other campaigns have also benefited from the impacts - but it needs to be done right. Pulling on consumer emotions, catering to the right target market, etc., all require work - so to get the best results, make sure you devote the time and resources.

The checkout line - your last chance for a sale. This is usually the point when you often have the attention of the shopper, more than at any point in the store, because they are standing and waiting. 

Traditional marketing with displays used to get people thinking about that last-minute spontaneous purchase, but do they still have the same effect? According to a recent study done by Time Warner Retail Sales & Marketing, the checkout line is often an afterthought for consumers, but shouldn’t be for grocers. Why? Because checkout line sales represent 1% of total grocery sales - and up to 10% of consumers will make a purchase in the checkout line. That is pretty impressive for a relatively small category.

When it comes to CPG sales, many traditional merchandising methods still hold value - and making the switch and phasing them out may not actually work in your best interest.

Want to know more about these traditional merchandising methods and how to implement them to create a campaign that yields real results? Storesupport has you covered. Call us today at 1-877-421-5081.

The New Shopping Journey: How Consumer Behaviour is Changing

In the retail industry, no matter the sector, understanding customer behaviour is a constant challenge that both retailers and brands struggle with on a regular basis. Knowing how to target, when to target, catering to the right person at the right time - these are all points of differential that can make or break a sale.

Over the last few years, consumer spending and consumer behaviour have changed dramatically.

Check out this great infographic from Chicago based firm IRI, The New Shopping Journey.

Here are some highlights on how and where money is spent:

-       75% of shoppers rely heavily on their mobile devices when shopping, both beforehand and during the shopping journey.

-       60% of shoppers are looking for private label brands.

-       Shoppers are visiting fewer stores, choosing to shop at the ones they believe offer the most value.

At Storesupport, we can help you best determine the course of action that means maximum efficiency, cashing in on consumer behaviour trends. Call us today at 1-877-421-5081.

How Are You Earning Customer Loyalty?

Earning customer loyalty, for retailers, is a constant struggle. Knowing who to target, and when, is a challenge - one that can make or break your bottom line. This is why it always helps to have someone in your corner offering timeless and trending advice.

Today we are taking on that roll and sharing this great article we found regarding earning customer loyalty, “25 Tips for Earning Customer Loyalty” from Entrepreneur. Check it out here: 

http://www.entrepreneur.com/article/245365.

Key takeaways:

-          Share your core values

-          Provide excellent service and exceed customer expectations

-          Always be transparent and admit when a mistake has been made

-          Create a sense of community with your customers

-          Don’t neglect existing customers

-          Offer incentives

-          Ask for feedback and act on that feedback

-          Always be reliable

-          Anticipate problems before they become problems

-          When problems are identified, fix them

-          Be flexible

-          Communicate

Customer loyalty has to be earned - we all know that - but there are some tried and true methods to do so. These tips draw on traditional methods and incorporate the latest trends, achieving maximum effect.

If you want more tips on earning customer loyalty, Storesupport has the toolset to help. Call us today at 1-877-421-5081.

Is CPG Dying in Canada? How to do Rightsizing the Right Way

Change is a constant factor in the retail landscape, and adapting to change is a critical component of any brand or retailer’s strategy. It seems as though many companies are making the move to smaller locations, downsizing and putting emphasis on online sales. This trend to downsize has had many impacts - not least of which is the continued competition, impact on brand loyalty and the impact on employees (lots of people are finding their jobs being downsized as well).

Canadian Grocer recently weighed in on the online grocery trend with their article “Get ready for online grocery’s rise.” According to the article, “Of Canada’s vast supermarket sales, only a drop in the bucket are online. Nevertheless, grocers and CPGs should start to plan their e-commerce strategy now or else get left behind as consumers start to fill their pantry from their computers and smartphones.”

Furthermore, according to Keith Anderson, vice-president of strategy and insight at Profitero, “By 2018, three per cent of CPG sales in Canada could be online, up from the current estimates of 0.5 to one per cent.” That is a major mark up!

Check out the full article here: http://www.canadiangrocer.com/top-stories/get-ready-for-online-grocerys-rise-in-canada-54240.

So what does this mean for retailers across the nation? Well, with the downsizing trend often comes lost loyalty, so you absolutely need to be sure that you are rightsizing!

What does rightsizing mean? Whether you are downsizing or upsizing (yes, while the trend seems to be downsizing, many other stores are upping their square footage rather than reducing it), if you do it correctly, you are rightsizing. This means keeping customer service levels high and staying on top of empty or messy shelves and employee to customer ratios.

Is CPG dying in Canada? Of course not. It is just changing. Chances are we won’t see the demise in our lifetime - we can always keep our fingers crossed just for good measure - but that doesn’t mean that we can keep doing things the way we’ve always done them.

The old saying adapt or die may not necessarily apply here, but when it comes to rightsizing, you always need to keep an eye on strategy.

For more about retail downsizing, upsizing, or as we like to call it, rightsizing, please call Storesupport today at 1-877-421-5081.

Going Digital…Are You Targeting Through Digital

Over the last few years, digital has become the trend in retail. Keeping in touch with consumers, engaging them and motivating them to purchase has become far easier when digital is embraced. So, have you gone digital? Are you targeting your customers through digital?

Here are the top 3 digital trends sweeping the retail industry in 2015:

Social media. Social media continues to be a major player in the retail game. Before social media, people used the internet primarily to research products and compare prices. However, although that remains an important part of digital, far more is now done online, specifically when it comes to social networks and reputation. 10 years ago, not having a website was common. 5 years ago, many companies still had not jumped on the social media bandwagon. In 2015, both of these are gone the way of the horse and carriage - a few hangers-on still try to stick with tradition but it is becoming harder and harder. Now, people head online not just to research price, but to read reviews, get recommendations, find out what others in their networks are saying about different companies. Ignoring this fact can be detrimental - social media definitely needs to be embraced.

Marketing through email. Being asked for your email address at the register has become commonplace, and for good reason. Marketers are celebrating the value of email marketing for retail in a big way. It is a great way to keep customers informed, and especially when they are provided with something of value, is a great way to get them into the store. Just make sure to balance out the promo and don’t be sending daily emails - too much and that unsubscribe button will be getting a work out. Keep emails short and sweet - weekly deals, promos, etc. are a great way to keep customers connected with your brand or retail location.

Digital signage and interactive retail displays. Customer engagement offline is becoming just as important as online, and it too has gone digital. Digital signage and interactive displays are a great way to grab attention and get customers talking. This is especially popular with newer products or brands. Create an emotional connection, draw on seasonal tradition, anything that will make a customer stop and think is a worthy addition on the retail floor.

No matter the industry, going digital is now a necessity, and with CPG it is no different. Are you taking advantage?

For more about going digital in the retail arena, please call Storesupport today at 1-877-421-5081.

The Young and The Restless? Generational Challenges in Retail

Baby Boomers, Generation X, Y, Z, Millennials - sometimes it becomes almost impossible to keep all of these groups straight - and keeping their wants and needs as both customers and employees is even harder. Generational challenges in retail seem to only be growing with the times and that means that it can be hard to keep up, and that makes keeping up even more essential!

Consumers:

Chances are, your pool of potential consumers is generationally diverse - this is especially true in the consumer packaged goods industry - and that presents its own challenges. One approach to deal with this is to choose one group and cater specifically to them, ignoring all others. Is this a good idea? Probably not, and we suggest taking a different route.

Instead, cater to every group simultaneously. Technology has made this task easier and harder all at once. For example, online shopping, although taken advantage of by all ages, is more common for younger generations. However, technology in store and mobile e-commerce continues to grow, and the older generations are adapting just as well. The best advice we can offer when it comes to dealing with this generational challenge in retail is to make sure that you are not putting off one group in exchange for another - be inclusive, not exclusive.

Want some more advice on how to overcome this challenge? Check out this great article from Instore Magazine:
http://www.bakemag.com/instore/Consumer/Demographics/2014/12/Generational%20differences.aspx?cck=1.

Employees:

The retail space is predominantly filled by millennial aged employees - this is a well-known fact. This alone creates problems. Hiring almost exclusively, whether by choice or necessity, from one group means that shoppers outside of this group can feel ostracized - never a good thing in retail. When you have a generationally diverse workforce, this strongly works in your favour. Each group has different needs - but as a whole they should be working together.

Dealing with clashes? Here is a great article from Vancouver Business. Although not specific to retail, it has some really excellent tips that do apply to the retail landscape: https://www.biv.com/article/2015/5/ask-experts-embracing-generational-differences-wor/.

There is no way around it - generational challenges in retail exist, both on the consumer side and within the workplace. This fact can’t be denied, and unless you embrace these difference, you may just find yourself at the back of the pack.

Call Storesupport today for people support and marketing tips to take advantage of these differences: 1-877-421-5081.

People Support: Top 5 Reasons to Hire 3rd Party Retail Employees

All of us in the retail world have struggled with it at one time or another; the decision to outsource people support is debated heavily in the retail industry, and many retailers have asked us why they should even bother…so, why should you even bother? Is hiring 3^rd party retail employees worth it?

As an answer, here are our top five reasons to hire 3^rd party retail employees. Consider each one, and we are confident that the answer will be pretty clear.

-          Time.

o   In house: When you add up all of the time spent placing an ad, interviewing, then training new employees, these hours can really start to climb. And it isn’t just that employee’s time (which of course you have to pay for), it is HR time as well.

o   Outsourced: You can pretty much turn back the clock when you outsource - as employees are already vetted and trained when they show up for work.

-          Resources.

o   In house: This is along the same lines as time, especially when you consider your employees a valuable resource. Any of the materials needed, including training resources and uniforms, require reusing (or repurposing or repurchasing) with every new hire.

o   Outsourced: These resources are significantly minimized when the employee is brought in by a third party.

-          Cost.

o   In house: The above time and resources cost money. After all, you can’t train an employee for free.

o   Outsourced: Again, costs are significantly reduced when everything is already done.

-          Service.

o   In house: When you hire a new employee, even if the interview is a smashing success, you can never truly gauge an individual’s commitment to service until they are on the store floor and interacting with customers. If it isn’t on par with your expectations, this may require additional training, or in a worst-case scenario, firing and hiring once again.

o   Outsourced: When the third party can guarantee high levels of service, you don’t have to worry. With trained, experienced employees, you don’t have to worry about customers being dissatisfied or dealing with an under-performing new hire.

-          Stress.

o   In house: With hiring, stress is almost always a factor. This is doubled when you consider having to let someone go with restructuring changes or if hiring on a seasonal basis.

o   Outsourced: Temporary employees from a third party do not incur this stress - the hiring and letting go is already handled by someone else!

When you are considering outsourcing your people support, whether for seasonal needs or short term solutions for rightsizing, these reasons to hire 3^rd party retail employees might just help you decide.

Storesupport has the people support that saves you time, money and resources, and can give you peace of mind. Call us today at 1-877-421-5081.