The In-Store Metrics Consortium, a collaboration of manufacturers and retailers led by the In-Store Marketing Institute, has devised a formula to measure the effectiveness of in-store marketing.
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The model was developed and tested at four leading retailers. It equips manufacturers and retailers with the ability to determine consumer reach in-store.
“This project will unleash new potential for retailers and marketers. Armed with the information only available through this metric, they can create more efficient, pleasant experiences for consumers,” explained Jim Stengel, global marketing officer, Procter & Gamble. “I applaud the industry collaboration that it took to make this new measurement initiative possible.”
The In-Store Marketing Institute and several of the world’s leading branded manufacturers formed the consortium that supported the study through funding and other resources. Procter & Gamble, The Coca-Cola Company, The Walt Disney Company, Kellogg’s and the Miller Brewing Company sponsored the study while Albertsons, Kroger, Walgreens and Wal-Mart were the retailers supporting the study.
According to Peter Hoyt, executive director of the In-Store Marketing Institute, the study and the measurement model it produced, called Pioneering Research for an In-Store Metric (P.R.I.S.M.), could only have been developed thanks to this high level of cooperation between retailers and manufacturers.
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By GlobalData“The fact that in-store marketing — one of the most ubiquitous forms of media — can now be measured is an industry breakthrough. We hope this will become an industry metric for calculating audience reach in stores, similar to the ways in which audience reach is measured for broadcast and other forms of mass media,” said Hoyt.
The findings of the study were presented in full yesterday (27 September), during the In-Store Marketing Expo in Chicago. Speakers from the Institute and partner manufacturers and retailers said the study demonstrated that a metric could be developed as an industry model for measuring in-store marketing activity. This metric can then be used to forecast traffic and unduplicated impressions. Accurate chain-wide projections are then possible by using this metric and data from a limited sample of stores.
The research team for the pilot study developed and validated the following formula: store traffic X compliance X unduplicated impressions = in-store marketing metric.
“This study has tremendous importance for retailers. Informed by the sophisticated data that this new metric will provide, retailers, for the very first time, now can consider new store layouts and product adjacencies to create an in-store experience that is more relevant, and thus, even more satisfying,” Stephen Quinn, senior vice president of marketing, Wal-Mart, said.
“Our organisation has scrutinised the methodology of this study. We find its implications for both retailers and consumers are far-reaching. We are eager to move forward with the next phase that will refine and expand the application of the metric,” Quinn concluded.
To review a recording of the presentation on and for more information about the findings of P.R.I.S.M. and the In-Store Metrics Consortium, visit the In-store Marking Institute.
