Rating the ROI from Retailer Marketing Programs

As part of our annual Trends Survey, the Path to Purchase Institute asked consumer product marketers to rate the return on investment they received when participating in various marketing platforms, programs and seasonal events at 12 key retailers.The programs presented to these marketing executives were selected at random based on the Institute’s ongoing coverage of these retailers, and were meant to present a broad range of collaborative marketing opportunities, from in-store to online, seasonal promotions to strategic shopper marketing platforms. The only defining characteristic is that they are all executed by the retailer with support from multiple product manufacturers. We included the back-to-school programs for most of the retailers (except Walgreens and CVS/pharmacy) to provide an opportunity to compare ratings for somewhat-similar programs across the list.Survey respondents were simply asked to rate the ROI that they gained for the programs in which they participated as “high,” “average” or “none.” We did not ask what ROI metrics they used to make the assessment or offer any guidelines of our own. We assume, therefore, that the exact definition of “ROI” may vary widely across respondents. But our primary goal was to get a general idea about which retailer programs are perceived to be “working” and which ones aren’t.In some cases, we did not receive enough responses for individual programs to make the results “scientifically valid,” and we view the results more as collected opinion rather than true research data. We do, however, believe that they are reliable enough to at least spark a discussion about the effectiveness of various collaborative activities in the marketplace.The highest rated program in the group was Costco’s sampling program which, as a longstanding, systematized opportunity, represents a different type of marketing “animal” than anything else on the list. But the program, used primarily to introduce new items to the warehouse club's shelves, is apparently effective, with nearly half of respondents reporting a “high” return and only one out of 39 claiming to have received no return at all.Costco’s pseudo-monthly direct-mail piece to members earned the second-best “high” ranking, with more than one-third of participants classifying it as such and, again, only one giving it a full thumbs down. Its back-to-school effort, however, did not fare nearly as well, which kept us from crowning Costco as the list’s “winner.” (The same holds true for all retailers, with no chain earning relatively high marks for all three programs.)Walgreens’ “Discover Beauty Within,” a program targeting “Sociable Stella,” one of the drugstore chain’s key shopper segments (see “Marketing at Walgreens” in Related Articles) with skin, hair and makeup advice, tied for second, and also was one of only seven programs that received all “high” or “average” responses.The highest rated program in the supermarket channel was Supervalu’s “Holiday Joy Made Easy” seasonal effort from late 2010, which 37% rated as delivering “high” returns and only one of 27 asserting no return at all.The program was successful in part because it focused on providing shopper solutions, uniting brands to develop recipes, tips and savings. But it also spanned marketing channels without diluting the campaign message, incorporating a unified P-O-P package, a dedicated microsite, and TV and radio spots that all led back to booklets containing the coupons and tips that were distributed via direct mail, Sunday newspapers and in-store shippers.The program’s apparent success also reflects the work Supervalu has done internally to develop a shopper marketing strategy that aligns its marketing and merchandising departments around the common goal of solving problems for shoppers, which has resulted in an increase in the amount of in-store merchandising that ties directly into seasonal programs.The grocer’s 2011 “Fresh Summertime Fun” program, which executives had hoped would represent another step forward in terms of collaboration and execution (see “Summit Keynote …”), didn’t earn as many rave reviews, with only four of 24 respondents claiming high ROI — but none, on the other hand, declaring no ROI at all.Kroger’s 2011 back-to-school “Mega Event” ranked highest among the 10 programs from that season that were evaluated. The campaign was one of the more straightforward promotional efforts on the list, a basket-building program in which shoppers received $5 off at checkout when buying 10 participating products. Still, more than one-third of the 49 respondents classified their return as “high.”Walmart’s back-to-school effort didn’t exactly earn straight A’s, with 18 of 68 respondents selecting "high" but seven asserting “none.” That landed the program about midway down the list. The campaign is still noteworthy, however, because it embodies the efforts the retailer has made to reverse course away from its failed “Project Impact” initiative. (See “Walmart: Reversal …”) And seasonal merchandising included a healthy mix of displays customized to fit Walmart’s program guidelines and national displays communicating the manufacturers’ own themes.The lowest score among the back-to-school efforts was received by Family Dollar’s "Education is GR8" campaign, a cause component within the retailer’s overall seasonal program that involved a sweepstakes awarding educational grants. Two of the five respondents said that the limited-partner effort did not deliver a return, and none reported a high return. Family Dollar’s overall program didn’t fare much better, with only four of 20 respondents labeling it “high” (but none giving it a “none.”).In general, high-profile cause campaigns didn’t seem to score well, with Ahold USA’s perennial “Triple Winner Game” and two huge Breast Cancer Awareness Month efforts, Safeway’s “Together for a Cure” and Kroger’s “Giving Hope a Hand,” also ending up near the bottom of the list.On the other hand, Dollar General’s literacy platform and Safeway’s “10% Goes Back to Schools” program (which had two flights in 2011, the first in January) both earned generally positive ratings.

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