Retailers are feeling the need to reduce operational and financial risk wherever possible in order to remain competitive in the coming years.
What Planogram Reporting Can Reveal About Your Shelf Sets
How can you determine what products are selling based on the shelf set location or whether those sales come from innate consumer demand?
For any retailer, it is essential to understand the customer's shopping experience at shelf. The layout and design of a shelf set, or planogram, is a clear representation of how well a retailer understands their customer. Which products are carried, how many facings each product has, and even the position of those products within the set itself should be based on the customers shopping in that particular store.
To make these determinations, you need accurate and insightful planogram reporting based on individual store and customer sales. This reporting can help to answer some of the most vital questions in retail sales:
- What products are selling based on the shelf set location?
- Do those sales come from innate consumer demand?
- How many of those sales are impulse purchases?
- How many are based on promotional activity?
In retail merchandise sales, the more visibility you have to your shelf set performance, the more you can learn as merchandise flows through it. Here are 3 key insights that industry-leading planogram reporting software can reveal about your shelf sets:
Discover The Insights Hidden In Shelf Sets
The planogram forms a visual guide to direct store staff to set up shelving displays as required; it validates the effectiveness of communicating brand identities in marketing tests and they also become elements in a store map. Whether the diagram is as simple as a schematic or includes actual images of the products, it gives merchandisers and managers a sense of the most visually balanced layout design.
The most useful insights come from analyzing the sales of products passing through your shelf sets in relation to the exact specifications of the shelves determined for that store. Considering metrics such as "sales per inch" or "average sales per SKU" can help to measure the productivity of a given planogram based on actual POS scans at checkout. It is also helpful in comparing planogram performance across set sizes and store locations.
Measuring Results In Two Parts With Planogram Reporting
You can use your planogram like a template through which you determine which products to make available to consumers. By analyzing the product data that passes through your shelves and relating it to the information about your shelf sets, it provides you with a phenomenal amount of data. Any retail analytics report that shows how products move through shelf sets to see the analytical insight into the success rates of particular configurations of the goods and brands and display materials.
Assuming that you have set up your displays correctly, the flow of goods through the system provides all of the data that you need. Controlled changes in displays based on the planogram report will show how different configurations impact consumer behaviors and which one gets the most profitable results. You can discover combinations of reports that give even more detailed and subtle information that lurks within.
Combining Reports For Deeper Data Dives
Combine the planogram report with others such as the no-scan report or an ad-hoc report that suits your particular business is an effective way to get signals about how well your stores conform to your shelf set planograms. Merchandise team members can use this information to troubleshoot underperforming stores and products.
Create store specific planograms to maximize sales based on combinations of data that only become apparent through deep diving explorations of combined sources; it is as satisfying as going back to spreadsheets to explore untested scenarios and applying knowledge and creating solutions.
Planograms are not static and unchanging; they should respond to the local environment and answer questions. The most certain way to determine the value of particular shelf sets is to find the information in the data and monitor how it changes as you adjust the details of the layout.
iControl provides data integration, payment settlements, and performance insights that bring retailers and supply chains together. Our solutions for retail analytics improve performance, reduce costs, and deliver the goal of doing business more profitably. There are more than 30,000 retail outlets in 50 states that rely on iControl for business intelligence tools to improve their performance. For more information about iControl contact us directly.