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Optimize Planogram Compliance with Premise Real-time data by way of crowdsourcing is the only method of ensuring the proper level of responsiveness to maximize sales and ROI. Enumerator reports are outdated the minute they leave the store, and this does not include the travel time, data crunching and report development, which need to be completed before the planogram data even reaches your desk! Furthermore, crowdsourcing leverages a global network of contributors to collect data in real-time for the most relevant planogram reporting. The most effective strategy for monitoring planogram compliance is through crowdsourced retail audits, which allow retailers, brands, and merchandisers to streamline store monitoring and verify planogram compliance. Near perfect or perfect compliance is necessary to ensure planogram accuracy, which requires close, continuous observation in-store if you have multiple retailers in multiple locations, continuous observation by way of internal or enumerator retail audits is time consuming and expensive. If planogram compliance is such an important factor for driving revenue, reducing OOS and improving the customer experience, why is this tactic neglected? Cost is a major reason.
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While this may not be particularly surprising, it is surprising to note that less than 60% of retailers measure compliance at the store level. Monitor Planogram Compliance with CrowdsourcingĪt the store level, employees and management tend to have a difficult time keeping planograms in compliance with a drop-off rate of 10% every week. Planogram compliance promises a positive customer experience happy customers benefit both retailers and brands. Planograms ensure product layouts are conducive to browsing, merchandising is located in prime foot traffic areas, shelf talkers and product identification is in the right location and more. Improve CXĮffective planograms are developed with valuable demographic and in-store data, which predicts customer behavior in-store. This guide helps merchandisers easily identify scarcity in stock, effectively manage inventory, maximize shelf space and optimize re-stocking. Planograms provide a visual representation of exactly how merchandise should look on shelf. In addition, planogram compliance makes it easy for brands to analyze and assess SKU performance, creating an opportunity for planogram adjustments based on performance. This improves the in-store customer experience (CX) creating an easy-breezy browsing experience, which increases sell-through. How can something so simple have such a monumental effect on sales?Įffective planograms ensure the right SKU’s are in the right quantities at the right locations displayed next to the right merchandising. On the other hand, a study by the National Association of Retail Marketing Services attributes an 8.1% lift in profit to planogram compliance. Why Planogram Compliance is Important Increase RevenueĪccording to RIS, lack of planogram compliance loses each US retailer $1 to $30 million in sales. You can have the most brilliant planogram backed with ample customer data and Einstein-level genius, but if you are not monitoring planogram compliance, the in-store merchandising may be sub-par leading to skewed results and inaccurate data. Perfect planogram compliance ensures that the proper quantity of products are in their proper locations with accurate merchandising and displays in accordance with the provided planogram.Ī lot of blood, sweat, forecasting, data crunching (and maybe tears) go into developing planograms with the goal of increasing visibility and driving sell-through. Planogram compliance is a retailer’s adherence to a brand’s provided planogram. This retail management tool is extremely effective in increasing sales and boosting profitability if, and only if, retailers are planogram compliant.
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Planograms are generally developed by the sales or marketing teams based on demographic insights, foot traffic and sell-through data. We discussed planograms and their importance in our blog Visual Merchandising: What Is A Planogram And Why Is Compliance Important? but as a refresh: a planogram is a visual representation of the proper placement of all displays, merchandise and shelving used as an in-store “guide.”