How important is it to measure Planogram Compliance?

In the dynamic world of retail, implementing a planogram is just the tip of the iceberg. While creating a planogram is a fundamental step, its actual efficacy hinges on the rigorous execution of this visual merchandising tool.

For Retailers

Failure to ensure compliance with planograms has far-reaching consequences for retailers, as shelf space is one of their most valuable assets.

However, when not managed meticulously, this valuable asset is ceded to suppliers who, driven by their interests, may prioritize their products over the greater good of the entire product category.

For Consumers

From a consumer's perspective, non-compliance has tangible and significant effects on the shopping experience. Shoppers may find themselves frustrated, unable to locate the products they desire precisely when and where they need them. This experience erodes customer satisfaction and can lead to lost sales and brand disloyalty.

What if Planograms are not implemented correctly?

The consequences of incorrect planogram execution continue beyond there. Retailers also risk damaging their relationships with manufacturers; they are quick to identify instances of non-compliance. When they do, they often use these instances as leverage during future negotiations, potentially leading to unfavorable terms and conditions.

The financial implications of non-compliance are significant:

  • A decrease in in-store foot traffic can directly impact sales and revenue.

  • Excessive inventory holdings due to poor planogram adherence can result in difficulties managing out-of-stock situations and replenishing stock efficiently, leading to missed sales opportunities.

  • A tarnished reputation with manufacturers can jeopardize future partnerships and negotiations, affecting product availability and pricing.

Retailers must prioritize planogram compliance to safeguard their bottom line and enhance the shopping experience. Regular in-store checks are a proactive approach that enables retailers to identify and rectify compliance issues before they escalate into major problems.

Traditional Merchandising?

While the traditional field marketing approach has proven effective, it often comes with challenges related to time and cost. Fortunately, a more efficient solution has emerged: crowd-supported, data-driven in-store checks. This innovative approach empowers retailers with timely, location-specific data at a sustainable cost.

Crowdsourcing?

By leveraging a crowd of mobile users strategically situated throughout Australia, retailers can swiftly obtain essential information from various points of sale nationwide. These mobile crowd members perform designated tasks directly within their local stores, guided by advanced mobile technology. 

They meticulously report on key performance indicators (KPIs) and capture essential photos, ensuring the planogram is executed correctly. The collected data is sent to our team, which conducts rigorous quality assessments. This data is presented through live dashboards and customized reports, giving retailers actionable insights to make informed decisions and ensure planogram compliance.

Improve what you measure

In conclusion, planogram compliance is not just a matter of shelf aesthetics; it's a pivotal factor in the success of Australian retailers. By prioritizing compliance, retailers can enhance the shopping experience, maximize revenue, and build stronger relationships with customers and manufacturers. The shift towards crowd-supported, in-store checks offers an efficient and cost-effective way to achieve this goal in today's competitive retail landscape.