Mystery Shoppers Help Prove the Value of Trade Promotion
Mystery shopping is revealed to be an effective tool in proving
the value of trade promotion for manufacturers and retailers alike.
Mystery shopping is revealed to be an effective tool in proving
the value of trade promotion for manufacturers and retailers alike,
according to the newest white paper offered this month by RitterAssociates,
the company that builds great customer experiences.
A critical issue for manufacturers is verifying that trade promotion
components outlined in a sales agreement with their retail trading
partners are working and capable of providing the anticipated
sales lift both trading partners expect. Manufacturers and retailers
(grocery stores, convenience stores, department stores, mass discounters,
and big box stores) all have a vested interest ensuring the effectiveness
of trade promotion spend.
Their search has generally ended with best-in-class technology
solutions, but more is required. While trading partners have worked
to ensure that the deal is properly understood, executed to plan,
and delivers the required return on investment (ROI) at the strategic
and operational levels, the use of professional mystery shoppers
provides the tactical performance data that complements the collaborative
benefits manufacturers and retailers want in their trade promotion
programs.
"Industry statistics show that manufacturers can spend in excess
of 50% of their marketing budgets on trade promotions", said Stanley
Gene Hart, President of Toledo-based Ritter Associates. "Proving
the ROI of trade promotion, and ensuring a degree of compliance
with the deal, can be daunting, but not impossible, when used
in conjunction with mystery shoppers. Professional mystery shoppers
can be deployed nationwide and provide virtually real-time data
on a number of trade promotion programs at the retail level."
Shoppers receive strict guidelines on what to look for and can
either conduct their visits anonymously or reveal themselves to
store management upon completion of their visit. "Both manufacturer
and retailer need to know how well the promotion is working,"
added Hart. "They have to be assured that the agreement is carried
out properly; otherwise, the results aren't meaningful and the
opportunity to optimize trade spend is lost."
