Have you found all your sources of ROI? Really?

The Central Group

I recently was in conversation with a sales executive from a major brand manufacturer. The topic of ROI for their instore programs came up – as it invariably does.

The exec was happy to report their double digit increases from product sales and volumes.  So I posed the question: what if, despite these impressive numbers, there was far more ROI to be harvested for not just his business, but for the businesses of all his partners?

As you might imagine, he wanted to hear more.

ROI isn’t limited to sales and volume

I told my sales executive friend about another initiative where we demonstrated that ROI wasn’t limited to strong sales and volume growth.

This example literally popped up every season at mall locations across North America, when another of our clients set up a pop up retail location selling some of the finest artisan cured meats, cheeses and appetizing complements for the holiday season and gifting.

This client had experienced long development cycles with their current implementation partner, as well as a highly restrictive retail structure in terms of size, finish, functionality and cost of ownership.

We were intimately familiar with the total cost of ownership. So we took a fresh approach, looking at the sources of income from a total ROI mindset.

That’s where the pop up store idea came from. The results couldn’t have been more impressive, with positive results leading to a fuller, more robust ROI calculation.

Here’s what that calculation included.

How to calculate your sources of ROI

Instead of just thinking ROI, think of these R’s as well.

  • ROS Return On Speed: the new design was executed in 25% of the time of the previous models.
  • ROW Return On Warehousing: the new design occupied 50% of the previous space in warehousing and distribution cost.
  • ROC Return On Costs: the new design executed at 20% less than previous design.
  • ROO Return On Operations: the new design offered unlimited flexibility in terms of customizability, scalability, durability, and finish options for now and the future.
  • ROE Return On Experience: the new design offered new digital signage options, as well as an enhanced look more consistent with the brand, with new lighting techniques and options for online ordering capabilities.
  • ROS Return On Sales: not only did the design meet all the aforementioned performance indices – it also drove positive ROI by returning higher revenue and increased volume, all in a challenging mall channel.

What to do

Instead of viewing ROI as a single measure, companies should view it holistically – using every opportunity to drive performance either through development, design manufacturing, logistics, distribution, and driving the best possible retail experience.

Every business involved in bringing their solutions to retail is interested in driving performance throughout their business. Whether in marketing, packaging / display development, procurement, sales, or at the executive level, it has become increasingly important to ensure dollars invested meet the desired business objective.

In short, leave no ROI stone unturned.

If you found this story useful, and you’d like to know more about how we work with brands to drive shopper ROI, don’t hesitate to contact Mike Alviano at mike.alviano@centralgrp.com, (905) 467-2231‬.

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