"The CPG brands and retailers have known for a long time the best way to drive incremental sales is with displays. There's been plenty of data on that for 10 or 20 years now."...George Garrick, formerly of IRI & Nielsen, currently a Shelfbucks Board Member
CPGs know that as effective as displays are in driving incremental sales, they are placed in selling space less than half the time. This represents a lot of lost opportunities. Merchandising displays haven't changed much for decades. Making corrugated displays smart by adding sensors that can measure the trip from manufacturing thru the supply chain to the retail store is a daunting task, some might even say it would require a miracle.
How it works can be understood here...
Data and analytics capabilities are of no use if they don't result in tangible business benefits. Let's review some of the benefits of making displays smart:
- Shelfbucks is collecting a lot of interesting data...when combined with CPG and retailer data, makes all the data more actionable. Our data points are the missing link that allow CPGs and retailers to make sense of the other data they have.
- Getting additional promotions on the selling floor is one of the best ways to get incremental sales. CPG's and Retailers don't know which of these programs work and which don't (this is because they don't know when the display went onto the selling floor and when it was removed for recycling for each store). The only practical way to get comprehensive data on sales lift and execution rate of specific promotions is by adding Shelfbucks data to CPG and Retailer data. Shelfbucks can establish accurate sales lift for when the display was on the selling floor.
- By combining our data with CPG and retailer data, we create a view of current programs for the life of the program:
- We measure the cumulative on-floor rate,
- the incremental sales per display,
- the average number of days each display stayed on selling floor,
- incremental program sales lift
- Shelfbucks compares each program's performance to other programs of that retailer, to other categories in general, and how this type of promotion compares to other programs of a similar type. This fosters the right discussions between CPGs and retailers.
- We identify meaningful trends such as what's going on by store type, store size, or by specific region. Shelfbucks extrapolates the incremental total sales of the program. We can show whether a product is regularly carried or not regularly carried. We can distinguish all the sales for that product to the display.
- We identify programs that include multiple products where all sales come from just one product, so the program can be improved the next year by changing the mix of products on the display. This is consistent with our aim to embed continuous process improvement so that every program gets better every year.
- Shelfbucks will know if the CPG should do a program again the next year or should do a different program. People are often surprised with data that runs counter to long held beliefs. Many CPGs are concerned that the display will arrive late for the promotion, but we can show most programs we've looked at arrive early, not late. This is a problem they weren't solving for, because no one thought it was a problem.
- Sales attribution is another area where people are often surprised by the data we can collect. We've found programs with 60% lower sales than they were looking at based on sampling data for just one day with an audit. That's the difference between a program they think worked and a program that didn't. What we can say is, "Look, this program worked fine. It didn't get on the sales floor enough, but we can tell you with confidence it will sell if you put it on the selling floor." That's important because you're going to take a completely different action on that, than if you just think the program didn't work.
- Shelfbucks can help the store ops teams take action. We notify individual store managers to take three specific corrective actions while program are live in the store. It's simply not good enough to tell store people these are the programs you'll have for the next 3 months. They want to know tasks that can improve sales today. If they're not going to do it, this gives them a chance to tell us why they're not going to do it. That's information nobody has today.
- Shelfbucks helps provide comparative performance data about displays to Corporate Store operations. We give scorecards to each district manager comparing relative performance of all smart displays in their stores.