Why is Store Execution Important?
Store execution refers to a set of activities carried out to organize in-store merchandise in a way that drives sales and cuts losses. The ultimate goal of store execution is to turn shoppers into loyal buyers, all while having a great shopping experience.
Store execution, however, is all but simple. It has evolved into a complex technical area of study and operations that involves retailers, consumer brands, merchandising companies, to name just a few. The challenge is not only to plan and execute a strategy but to constantly monitor outcomes and outsmart the competition.
Some key aspects of store execution include merchandising, loss prevention, operations, and training. Merchandising is primarily concerned with the way products are displayed on the shelf. It also includes how seasonal sales and promotions are executed. This includes signs, displays, and price labels in the store.
There are additional elements that are critical for effective store execution. Loss prevention is dependent on the mechanisms in place to protect assets, ensure accurate financial reporting. This includes using cameras, lockers and security tags. Operational efficiency is related to the way store staff at local and regional levels ensure smooth delivery of program objectives at the front and back end.
Training is also extremely important as it will ensure that store staff, at all levels, are aware of the standards they need to adhere to. This includes customer service, general appearance, and store operations. If even a single link in this complex chain goes missing or is broken, a multimillion-dollar marketing campaign can lead to a miserable failure.
And these failures can and do happen. Following are examples of such scenarios and how to avoid them.
You did everything by the store execution bible, but you are out of stock
Stores often have to deal with this situation when they run out-of-stock for certain products. This can be due to poor inventory control or because the product manufacturer delayed production or the shipment did not come through etc. Whatever the reason, having out of stock products can turn customers away. Research suggests that 37% customers would choose another product if their first choice is not readily available. This literally means you are dishing out your loyal customers out to the competition.
Lack of communication among stakeholders
All stakeholders including retailers, brands, marketers and advertising agencies need to constantly communicate to ensure that the marketing strategy is aligned with the retail reality. Advertising agencies need to be mindful of how their tactics would pan out in a particular area. Improved communication will ensure that the store execution strategy is executed as close to the original vision as possible.
Retailers now realize the importance of store execution and they also understand the important role communication plays in effective store execution. Companies like Zipline allow retailers to reimagine store execution and task management by improving store execution through an intuitive, centralized solution. The goal is to improve store communication, move teams faster, increase productivity and improve visibility.
Training your employees
In today’s digital world, shoppers are much savvier and informed than a decade ago. They enter a brick and mortar store with a wealth of knowledge about the product and what exactly they are looking for. Store employees need to be brought to speed to keep up with the shoppers. This is a complex area, but with ongoing customized training, it is possible to engage shoppers better and help them navigate the store and products by increasing customer-facing activities.
You cannot manage what you cannot measure!
It cannot be truer when it comes to store execution strategies. Sales performance metrics are crucial to an effective merchandising and marketing strategy. With advances in the sciences of data management and consumer behavior monitoring, it is easier than ever to use appropriate tools to track shoppers and identify modifiable factors to boost sales.
In an interesting case study, a beer company was able to identify an association between consumer travel patterns around the store and purchase decision. In addition to its regular aisle with other beers, a particular beer brand was placed in an end-of-gondola fridge. Using Shopperception technology, it was discovered that the same consumer makes a purchase decision differently at two different selling points. While more customers passed by the traditional beer isle than the fridge, there were more purchases made at the fridge touch point. The company banked on the shopper’s impulse buying behavior at the fridge touch point and increased sales.
Conclusion
Store execution is the art of bringing complex human behavior and available technology to make a cohesive whole that can help create strong-impact displays, well-stocked shelves with trained personnel to give shoppers a seamless experience. Done right, it can boost sales, build customer loyalty, beat the competition and ultimately deliver the promise of the brand!
