Retail promotion is one of the most important elements in the retail execution lifecycle. Promotions are vital to helping stores thrive but they need to be executed in the right way.
What Is Trade Promotion in Retail Execution?
Trade promotion management (TPM) describes everything involved in planning events and activities at the retail level. This includes activities such as brand management, budgeting, account management, integrated sales and marketing, and analytics.
The Importance of Promotion in Retail Execution
Promotion execution is essential for any retail business to monitor carefully. Promotions can deliver multiple benefits in any retail environment, including helping to boost traffic and sales. However, promotions need to be executed in the right way to get the best results. Without the right approach, promotions can end up poorly thought-out and a waste of money. Monitoring promotions carefully by collecting data and analyzing it to gain useful insights is a must for retail stores.
Promotions help to drive category volumes and profitability. They can help to encourage shoppers to try new products and switch to new options when executed correctly.
To collect the right data, you need to have the right tools. Your POS system can provide much of the information needed, but it won’t deliver all that you need. You should also collect information about what’s on your shelves, how your merchandise is being positioned, and other elements affecting the success of your promotions. Retailers and stores need to collect data relating to customer experience, sales, and promoters so that they can all be analyzed together to create a full picture of promotion performance.
What Happens When You Don't Utilize Promotion Execution?
When your company fails to utilize promotion execution, money and time can be lost on promotions. According to McKinsey, CPG companies invest up to 20% of their gross revenues on promotions but struggle to fulfill the full potential of promotions and growth drivers, missing out on the value they could deliver. This is due to a lack of visibility into the short-term and long-term impact of promotions.
The right tools make a significant difference when it comes to carrying out promotion execution effectively. The Shelvz Promoter module helps your promoters to collect the data they need for greater insights. Using Promoter, your retail teams are able to identify top-performing promoters, collect valuable customer data, and improve promotions across the board with data and insights. Easily see data visually displayed, including customer satisfaction and feedback, sales quantity and conversion rate, and much more.
Execute Promotions with Shelvz
Promotion plays a vital role in retail execution and needs to be carried out correctly for the best results. Your teams can monitor promotions and the multiple factors that affect their success with the Shelvz Promoter module, which provides the crucial data required to extract more value from promotions. Book a demo today to discover how Shelvz can help your CPG business grow.