Asset: Store Execution – Ten Percent is Not Enough

Blog Post | April 22, 2020

Store Execution – Ten Percent is Not Enough
See the asset Share the page
  • att_lp
  • blog_posts
Add a tag
Social Media

Download Image

When Zipline co-founder, Melissa Wong was wooing her technical co-founder, Jeremy Baker, to join her in her mission to improve retail store communications, she had him read a research paper by Pareto’s Dr. Hugh Phillips, an expert on the cognitive psychology of shopping, what consumers perceive in store and how they process information in their decision making. 

The research paper revealed that over 90% of effectiveness of a retail marketing campaign is lost between concept (at HQ) to execution (in stores)

Phillips explains,”The best estimate is that the net effectiveness is certainly less than 10%, probably around 6% to 8% for an average campaign. Whatever the exact level, it is certainly a low figure compared to our expectations. This may explain the finding that only around half of campaigns are successful in generating incremental sales. It is not surprising that this half would fail to generate additional volume.

Jeremy, fascinated by the scope of the problem, spoke to dozens of retailers for validation. Over and over, he heard the same response – Store execution was nowhere near where retailers wanted it to be but they couldn’t explain why since they thought they were doing all the right things.

The author notes that there are a few main areas where marketing initiatives lose effectiveness as they make their way from HQ to stores. Compliance is a big one. While many retailers report that compliance levels hover around 50%, more retailers actually don’t know what their compliance is because they don’t track it. According to the study, only 21% of companies actually measure compliance levels, while 28% of HQ’s just assume that the tasks that they are sending are getting done. 

“10% Is Not Enough” Dr. Hugh Phillips, Pareto, 2007

As part of his research, Phillips conducted an independent study to analyze the rate of in-store execution across several retail industries. The results show that only 29% of direction from HQ is being executed correctly, and on time.

Why does this happen? The problems lie in the technology, how brands communicate and empower their field teams and how they track results.

Lack of Adequate Systems: Many times, marketing initiatives fall through the cracks because they don’t have the proper systems to communicate initiatives, impacts to the business and asks for store teams. HQ often sends communications via emails, intranets or spread sheets. There is no single source of truth. As a result, stores don’t understand prioritization and important projects get missed. A single store could be fielding multiple marketing campaign requests a week. Without systems in place to deliver clear, concise communication on marketing campaigns and prioritization, it is impossible for the store teams to know which to focus their time and attention on. 

Lack of Ownership: Responsibility is delegated to the store staff, often without context or an implementation plan. This causes confusion of ownership and lack of compliance of the initiatives. 

Without proper communication of initiatives and a system to manage accountability, ownership becomes a problem. HQ assumes that once a message is sent and execution is requested, stores are all over it. But without an implementation plan with clearly defined ownership, very little actually gets executed. When everybody is responsible, nobody is responsible. 

Lack Of Monitoring: The biggest disconnect happens due to a lack of monitoring. HQ sends a communication or task and assumes that it is being completed. Monitoring tools aren’t in place since HQ assumes execution. They know it’s not happening uniformly… but they don’t realize just how bad it is. In order for HQ to fully understand compliance levels and marketing effectiveness, they must track and monitor compliance and execution rates of the tasks and initiatives being sent to stores. 

The fact is that these challenges are easily surmountable. Together, Jeremy and Melissa knew that the problem was worth solving. Retailers were leaving too much money on the table through badly executed campaigns. Phillips’ research determined, “The payback is immense, as there is a direct, one-to-one relationship between the success of a promotion and compliance levels.” So if there’s a 1% increase in execution, there’s a corresponding 1% increase in sales. 

To learn more about how Zipline helps retailers achieve maximum campaign effectiveness by focusing on communication and task management, reach out today.

Fill out the form to generate your link

What is a UTM and what does this form do?

A UTM is a set of parameters added to a link that tells Google Analytics how that visitor got to our site. And this form helps you make one!

Don't forget, whatever you fill in here will be seen by whoever you share the link with, so be sure not put anything in here that wouldn't necessarily be obvious or worse, could be insulting; ex. don't make the 'campaign' tier-3-prospects.

Please be sure to use all lower case, and dashes-instead-of-spaces.

If there is a gated version (behind a form fill), you will be able to select the gated or ungated (direct to the content) link.

Most common Zipline sources are:

  • linkedin
  • salesloft
  • paid
  • sales
  • qr-code
  • newsletter

The 'Source' is where the traffic is coming from, or the referrer.

Most common Zipline medium are:

  • social
  • email
  • banner
  • sem
  • event

Medium describe 'how' the traffic is coming to the site. So for example, clicks from LinkedIn or Twitter are coming through social media, so we simply call it 'social'. Another example is for email newsletter or direct sales email, the medium would be 'email'.

Current campaigns include:

  • zipline360
  • retail-talent
  • nrf
  • abm
  • holiday-comms

The campaign is an internal description of whichever campaign the link is a part of. Are you promoting an event like NRF? use 'nrf'. Maybe it's part of a new marketing campaign, then use the name of that campaign!

Term is optional, but can be used if there is a keyword associated with where you're sharing the link. This parameter is generally used to identify the search term used to find a paid ad for example.

Content is a good parameter to use when you are sharing multiple links from the same source/medium. If you have the same link in two different LinkedIn posts, you could use 'content' to differentiate based on the thumbnail used, or time of day. For example, 'Content' could be 'wed-afternoon' and 'thurs-morning' to describe when it was posted, or 'platform-thumbnail' or 'man-holding-clipboard' to describe the image associated with the link.

Your UTM link will display here after filling out the form