Retail Observer

RETAILOBSERVER.COM MAY 2018 54 M arketing, like most other business functions, has become more sophisticated over time. Part of that sophistication involves greater use of data and analytics to test and evaluate the success or failure of offers, marketing channels, creative, and the targeted audience. You may feel that such testing is only feasible for retailers with large marketing budgets and staffs but more and more, independent retailers are tying marketing to retail activity. The main areas of measurement used in testing include: 1. Impression data from digital channels 2. Video plays online from digital video 3. Website visits based on clicks from digital ads 4. Circulation of print 5. Store visits 6. POS (Point-of-Sale) transaction data The goal of all this testing activity is to hone in on what works best and do more of that. It is important to recognize that the best performing mix of marketing variables is dynamic and changes over time. The best mix is also different by product category (appliances versus mattresses versus consumer electronics versus furniture) and even by brand within a category (mass versus premium brands). Let's look at a real example of testing being run by a relatively new appliance brand – Beko. They identified select retailers that sell Beko appliances and were willing to share select POS data. This enables full testing from the launch of (digital) media to actual sales. The Beko team established a goal of driving awareness for the Beko brand through search text ads. The text ads click to a co-branded landing page on the dealer's website. The text ads are designed to drive curiosity about some of the unique aspects to the Beko brand. Three specific product categories are being tested with unique text ads for each. The campaign is designed to easily enable an evaluation of consumer response to the unique aspects of the three product categories as touted in the text ads. The test will conclude with a review of actual Beko sales during and soon after the campaign ends. The full sales results will be available 60 days following the end of the campaign. This is a fairly well controlled test, so the results are not likely to be impacted by much bias. Understandably, most retailers cringe at the thought of sharing any sales data with a vendor. Nationwide Marketing Group understands that and acts as the intermediary operating under an NDA (non-disclosure agreement). The vendor sees only the information that retailers are comfortable sharing. The test is an example of the strengths of partnerships between brands and dealers. Everyone is challenged to make the most of limited marketing dollars and setting up tests like the one above benefits the entire independent channel. What opportunities do you have for market testing within your business? Think about ways you can structure the test(s) in a way that provides the greatest insights for all of the parties involved. Frank Sandtner EVP Nationwide Buying Group Frank Sandtner Appliance Trends RO TESTING YOUR WAY TO MARKETING SUCCESS

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