What is the best way to evaluate the effectiveness of your promotional activities?
I work within the FMCG space and with new technology and advanced data analysis pathways emerging. We are on the hunt for new and improved ways to evaluate the effectiveness of our promotions with retailers.
We've been looking at increases and other changes in sales of our product. Any suggestions on methods we could use, other than measuring sales?
I suggest a query form post marketing. It draws honest, on-the-spot response or opinions and could also clearly indicate enthusiasm levels towards product sales.
Against this question one can write a lot but in simple out come (result) show how effective you promotional activity are ,if it work ok other wise change it
What are your goals and objectives?
Increasing brand awareness with content marketing works very well in driving traffic to websites and with SEO.
This video may help: http://youtu.be/5qoHtUVLhjc
AZ Social Media Wiz
Promotional activity is great for identifying programs that work with your target audience. Every activity should be monitored for effectiveness. A simple unique code or inquiry at checkout (how did you hear about us) may be all you need to determine how well specific activities work to bring prospects and customers to you. Create a calendar with the program, cost, code, and then, on the back end measure the change in customers, average sale and/or gross sales levels. Marketing activities should always have an ROI (Return on Investment), and the only way to know a program's ROI is to measure it. Marketing is implement, review and modify so analytics should be a part of any marketing program you do. Here's to your SWEET success!
Rate of response. 5% or more great. 2-5% good and under 2% poor.
It is really difficult to provide an answer without knowing more specifics about your promotional activities at retailers. As you know there are so many factors that influence sales, that only looking at sales comparisons could be misleading, since even weather conditions/seasonality can greatly impact sales, in addition to advertising efforts, shelf space/position, distribution, inventory, displays, point-of-sale merchandising efforts, price, competitive efforts, etc. It would be great if you had some retailers/stores (similar size, similar region, etc.) that did not have the promotional activities, and they you could use those stores as "control stores" to compare to sales in the retailers with the promotional activities--allowing for any needed adjustments. Of course, in the future before any promotional activities are selected, it would be great to conduct some kind of consumer research to determine which activities seem to be motivational for consumers to buy the products/brands.
There are a number of things that create sales, or keep you from getting sales. The goal of marketing is to get more sales, but marketing should be measured with realistic goals not just sales. For example: if you want your website ranked higher in searches, you of course are hoping more people will find it and as a result you will get more sales, but the real goal is to reach a spot in searches. If that is to get on page one and you are currently on page five, then when your website gets to page one, you have reached your goal successfully. If getting there doesn't increase sales, it doesn't mean your marketing was a failure, it means that you have other issues to address.
Without knowing more about what promotions you are doing with retailers, I can't do a better related example, but you get the picture. Look at specifically what it is you want your promotion to do, if it does it... success, and if everything else is setup right, it should increase sales.
As a marketing consultant, I never promise to increase sales... I have no control over that. I can put you where your target market can find you, but you have to create the sale.
I believe it is simple, track the activies on your website. Or the foot traffic inside the stores which carry your product.
Make sure you have clearly identified your primary target audience. Write your copy with this audience in mind. Speak to them in their language and relate your products and services value in a way that makes it easy to understand how it resolves their problems. Be sure to provide them with a clear call to action and give them an easy way to connect with you.
It depend on what the objectives of your promotions are. The tools you use to measure how effective your promotions are should be dictated by the goals and objectives of your promotions.
Are you trying to make a sale, lead generation, relationship building?
One of the best ways to track and measure the effectiveness of your promotional activities is to do DIRECT RESPONSE promotions.
Offer something for free that you think your target market will get value from and track how many request you get for your freebie. This strategy is ideal if your are doing lead generation promotions.
To your success,
"the Marketing Coach"