Which KPIs to measure your store's ROI
The “Drive-to-store” is a very efficient way to win new customers and increase sales.
But measuring its true impact on in-store sales is crucial. Not knowing the efficiency of their marketing campaigns is the nightmare of any Marketing manager. The challenge is to measure the performance of the resources allocated to marketing. In other words, how to calculate the ROI of a marketing campaign in store?
Traceability of these operations is important to measure their profitability. This is where key performance indicators (KPIs) come in the picture.
What are the KPIs that can be analyzed?
There are ways for retailers to easily count and add up in-store visits or time spent by visitors in store. Identifying precisely which visits are triggered by which digital solicitations is however more difficult. The Graal for retailers is to
Drive-to-store needs Marketing Attribution
successfully link a cash receipt to one or multiple marketing lever.
Measuring the in-store ROI depends on the ability by the brand or retailers to determine that the visit has been triggered by a specific campaign.
What does it take to measure the profitability of drive-to-store campaigns?
• The rate of incremental visits in store (attributed to a marketing campaign). This rate gives us the share of people who go to the store after seeing the campaign, compared to those who did not see it.
• The cost per visit.
• Incremental sales figures: The average amount of money spent by the customer that has been triggered by a marketing action.
• The revenue generated.
Some additional indicators do not directly impact the ROI, but are still important to increase revenue:
• Time spent in store or different areas of the store: the longer visitors stay in store the more likely the visitor is to become a customer.
• The frequency of visits (loyalty).
Which tools are available to Retailers and Brands today?
To complete this KPIs analysis, it is important to use technical means allowing to link the marketing operations to the physical visit and successfully map out customers’ journey in store.
Smartphone’s geolocation is always the central point of this equation, along with the GDPR and the need to anonymize the identified journey to protect customer’s privacy
4 technical means to obtain the precious data:
1. Geolocation of mobile GPS: This technology is used with mobile users who have agreed to communicate their geographical position. Apps that use the proximity of a mobile phone with its GPS coordinates are however not that precise, especially indoors, which can be problematic for the relevance of the collected data. Detecting a client who is actually next door is an issue.
2. Beacons: much more accurate than GPS geolocation. These are Bluetooth devices installed in store that interact with dedicated Apps preinstalled on visitors’ smartphones. They push relevant information or promotions to users.
3. Wi-Fi Sensors: This is a universal technology that is easier to use than Bluetooth technologies and a lot more accurate than GPS when it comes to the indoor location of visitors.
4. CRM onboarding: With this method, we will use visitors’ data from the brand’s CRM. They must already be registered in the database (be an existing customer).
Make the right decision
Today we can no longer afford to blindly spend on advertising without knowing the true cost of these expenses. Marketing actions can be declined in so many different forms, with different degrees of customization and vary in terms of efficiency. Brands and retailers need to be intuitive and creative, to figure out new ways to bring the web user or mobile user to the store and in the end, be able to precisely measure what they used to assume or guess. Which ones are the actions that work, which ones did not generate the expected results? To which campaigns should we reallocate next marketing budget?
By setting up a reporting tool that combines different KPIs and their relevance, brands and retailers can measure the profitability of their actions. Knowing how many visits were generated from a campaign, how much time visitors spent in store and how much they spent will allow retailers to take the right decisions for their marketing strategy.