Finding innovative retail software solutions to measure your latest marketing campaign may sound overwhelming, but retailers can start with three key metrics that determine the success or effectiveness of the promotion.
1. Link the customer to the sale: When you launch a marketing campaign, a retail ERP system can help identify the customers to target based on their past purchases or demographics. You can put together a marketing campaign targeting a specific subset of customers with a custom offer using email, direct mail or a mobile app.
But what if you didn’t use the customer data in your retail ERP system to come up with this campaign and instead used a third-party database to select your customers? Either way, you still need to measure the effectiveness of your marketing campaign.
That comes down to data capture. How do you know if the customer who received the custom promotion will actually use the coupon to purchase the sale item? Or what if you never gave that customer a custom coupon, but he or she purchased the item anyway? Or what if you sent a generic coupon that doesn’t have anything that identifies who you sent the promotion to?
Measuring the effectiveness of a campaign starts with thoroughly planning how you can link a customer to a sale. Among the innovative retail solutions to accomplish this is placing a unique serial number or coupon code on the promotion that links it to an individual customer or specific demographic group. You could also use a mobile app that is location aware and tracks when or how often a customer enters the store during the promotion. Also, retailers can measure how frequently a specific customer or group redeems or responds to your coupon.
Customer data capture is the first metric that measures the effectiveness of a campaign. After customers redeem their coupons or respond to the promotion, retailers can use that data to hone the targeted customer group for the next marketing campaign.
2. Compare the promotion’s response to a baseline: Let’s say you sent the same promotion to two different customer demographics. Customers fitting within demographic A did not respond as you had hoped they would, but the campaign received a high response from customers in demographic B. You decide that you are going to concentrate on customers in demographic B, but you must determine if the promotion and the response from the demographic B customers did in fact increase sales.
To measure the effectiveness of something, you need to have a baseline to measure it against. That means you need to know how well the product sold when there weren’t any marketing coupons or promotions going on. You need to know how the item normally sells in order to determine if sales increased when you launched a promotion.
This is probably the easiest metric you can get. After analyzing the sales data, you can effectively break down which demographics or which type of customers responded better to your promotion.
3. Measure a customer’s total purchase with the promotion: Gauging a campaign’s success doesn’t rely solely on the sale of the promoted item. Another innovative retail solution that measures the campaign’s success is analyzing a customer’s total purchase during the promotion. A targeted promotion could entice the customer to come into the store and purchase an additional $100 worth of items that were not part of the promotion.
So, marketing campaign effectiveness doesn’t always depend on the sale of a certain item. Retailers should look at the customer’s total shopping cart that included the items that were part of the promotion, then compare these to how much the customer bought when there wasn’t a promotion going on.
These are just a few of the innovative retail solutions that measure the effectiveness of your promotions. You can come up with all the promotions in the world, but if you are not able to measure the results, you’ll never know how effective they were, and, more importantly, how to adjust your promotions in the future to achieve improved success.