Retail execution is the final leg of the sales process for in-store purchases. It’s the last opportunity for consumer packaged goods (CPG) companies to capture their customers’ attention and seal the deal. In the simplest terms, it’s the retail activities (from merchandising to order replenishment) designed to bring the brand strategy to life in-store and increase sales.
Pretty straightforward, right?
Where it can get complicated is in the transition from CPG brand managers to field teams—the ones on the ground who are responsible for store displays, inventory management, and product knowledge. They’re the final steward of your brand.
And while a well-implemented in-store strategy can set your customer experience apart, the hard reality is that poor retail execution is responsible for 25% of lost sales. It makes you want to achieve mastery, no?
Yes, CPG companies need a retail execution plan
Creating, implementing, and supporting a retail execution plan will take time and resources, so it’s important to understand why you need one to begin with. And the more you believe in what you are doing, the more likely you are to succeed. Perhaps the best way to demonstrate the value of the program is to understand the cost of not implementing one.
When it comes to CPGs, 76% of the decisions to purchase happen in-store. Take that a step further; nearly 70% of all in-store purchases are impulse-driven. A clear plan ensures your field team knows exactly how to execute your brand’s vision and gives you the best shot of making it into your customers’ cart.
Building blocks for your retail plan:
Building your plan starts with understanding the basics: What is your goal? What is your method? And how will you measure?
The goal is simple: to achieve in-store sales. And, being a retail execution plan, the method is an ongoing cycle of improvement involving the field team and execution compliance.
So how do you measure? As with most things these days, data is our friend. And in this scenario, there are three types of data that will come into play:
- Observational Data
It’s exactly what it sounds like: what do you see? What is missing? What can be improved? Create attention at the retail level to products and the health of their presence. - Activity Data
What are you going to do with what you see? Plan for what ground teams can do to continually improve displays, keep shelves stocked, and a system for covering the territory. - Sales Data
Are products moving? How much? At what time? Track the volume of merchandise that is moving and compare that with the integrity of the displays.
Can retail execution move the needle?
Absolutely. But it depends on how seriously you take it. A report from the ShopAssociation.org showed that, despite a more than 70% perceived compliance rate for retail displays, most actually only demonstrate a 40% compliance rate. That’s quite the gap, especially once you understand how many purchase decisions are made in-store. You can’t fix what you don’t take the time to see.
Beyond displays and data, there is a good, old-fashioned product knowledge.
“Excuse me, can you tell me a little bit about this?” a customer might ask someone on the sale floor. At that moment, that team member becomes part Google, part Yelp, and the final voice of your brand. Are they being given everything that they need? A report from PWC revealed that 78% of shoppers identify “sales associates with a deep knowledge of the product range” as one of the most critical factors for them when shopping in-store.
Understanding the relationship between the marketing and storytelling, the retail presence, and the ultimate stewardship of your brand on the sales floor allows you to leverage every resource. When executed well, the result is a seamless customer experience.
How do you make someone else care about quality?
Demonstrate through your actions, and remove any guesswork. Provide your field team with a thorough and thoughtful plan, offering background information, product details, and the importance of the entire chain—from manufacturing to shipping to in-store display to purchase. You can also incentivize high-quality work through bonuses, spiffs, or public praise, instituting a transaction of gratitude and recognition.
Connecting the dots for in-store promotion strengthens your bonds with your field teams, and create a cycle of continuous improvement. Commit to checking in, listening, investing, and appreciating teamwork-driven accomplishment to achieve sales and brand loyalty.
