Roamler and IRi: a well executed promotion results in up 159% extra revenue
25 AUGUST 2015, AMSTERDAM, THE NETHERLANDS
SummaryAt Roamler we recently conducted a joint study with IRi investigating the impact of well executed in-store promotions on sales figures. By looking at the product sales of Kwekkeboom products during a promotion period at Coop, we were able to discover some staggering findings. As such, please find a full press release below. Furthermore, you can read a full article regarding the study on our blog.
Retailers miss out on revenue from promotions
- Roamler and IRi researched the impact of well executed in-store promotions on the sales figures of Kwekkeboom products at Coop.
- Stores which executed the promotion well delivered up to 159% more revenue for Kwekkeboom (in Euros) compared to those stores which had a lower execution quality of the promotion.
- Stores with good promotion execution sold 170% more Kwekkeboom products than stores which made other choices during the action week as a result of the warm weather- that is almost three times as much!
- Additionally, those stores with a well executed promotion realised extra revenue of up to 20% in Euros on the entire category of frozen snacks.
- A well stocked supply also resulted in an extra 16% of product sales, or 9% more revenue in Euros.
- By focussing on well-executed promotions within store as a priority, both retailers and manufacturers can obtain higher returns from promotions.
Earlier this year Roamler and IRi conducted a joint research study in which they investigated which elements contribute the most to the success of a promotion. Our next question was, how much impact does the execution of these elements have? In a new research study Roamler and IRi compared, together with New Forrest and Coop, the sales figures of stores which had implemented the promotion of Kwekkeboom products in different ways.
The result? Well executed in-store promotions can lead to a staggering 159% extra revenue in Euros! These stores sold 170% more Kwekkeboom products than the stores with lower execution quality - that’s almost 3 times as much! Increased revenue was not only limited to Kwekkeboom products alone in those stores with good promotional roll out (high execution quality): the revenue of the entire category frozen snacks rose by 20% in these stores. The implementation of high quality in-store promotions is therefore not only of importance for the manufacturer, but can also realise enormous potential for retailers.
Within this study the fact that one store is not identical to another was taken into account. Only stores which had similarities based on a set of criteria were compared to one another using the ‘matched profiler’ principle of IRi.
The results are not one-offs: with a 99% significance level you will certainly encounter this result in 99 out of 100 instances. The level of extra revenue naturally differs from retail chain to retail chain, from category to category and even from product to product. But the fact remains that both manufacturer and retailer can greatly benefit from a high level of promotion quality.
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About Roamler (English)
Roamler is a mobile marketplace, operating in the so-called "Gig Economy". Roamler connects people to work that fits their profile. It has created communities of people in 14 countries in Europe and Latin America. Every day, hundreds of results are collected about the availability of products in stores, the prices of products and the visibility of promotional material.
In 2016, Roamler founded Roamler Tech in partnership with Eneco, which carries out certified crowd installations in consumer’s homes as the smart thermostat "Toon".
was founded in The Netherlands in June 2011 by Wiggert de Haan and Martijn
Nijhuis and has its headquarters in Amsterdam.
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