What are the best ways to measure ROI for online and offline merchandising?

2 Offline merchandising ROI

Offline merchandising is the practice of displaying and promoting your products in physical stores, events, trade shows, and other locations. To measure the ROI of your offline merchandising, you need to estimate and compare the costs and benefits of your merchandising activities. Some of the costs include rent, labor, inventory, signage, and transportation. Some of the benefits include sales, foot traffic, brand awareness, and customer loyalty. The formula for offline merchandising ROI is:

Offline merchandising ROI = (Benefit - Cost) / Cost

3 Online vs offline merchandising ROI

Comparing the ROI of online and offline merchandising can be challenging, as they have different advantages and disadvantages. Online merchandising has lower costs, higher scalability, and more precise measurement, but also faces more competition, higher customer expectations, and lower retention. Offline merchandising has higher costs, lower scalability, and less accurate measurement, but also offers more sensory appeal, personal interaction, and emotional connection. Therefore, the best way to compare the ROI of online and offline merchandising is to use a holistic and integrated approach that considers both the short-term and long-term effects of your merchandising strategies.

4 How to improve your merchandising ROI

No matter if you are selling online or offline, there are several tips that can help you increase your merchandising ROI. To start, it is important to understand your target audience, their preferences, needs, and behaviors. Additionally, testing and optimizing the elements of your merchandising, such as layout, design, color, lighting, copy, and price can be beneficial. Utilizing data and analytics to measure and improve your merchandising performance and customer satisfaction is also key. Furthermore, it is important to align your merchandising with your brand identity, value proposition, and marketing goals. Lastly, creating a consistent and seamless omnichannel experience for customers across online and offline channels is essential.

5 Examples of successful merchandising ROI

To inspire you, here are some examples of successful merchandising ROI from online and offline retailers. For instance, Amazon utilizes dynamic pricing, personalized recommendations, and cross-selling to enhance its online merchandising ROI and customer loyalty. IKEA, on the other hand, relies on a clever store layout, interactive displays, and low prices to increase its offline merchandising ROI and customer engagement. Sephora also combines online and offline merchandising with its Beauty Insider program, which provides rewards, discounts, and exclusive access to its customers both online and in-store.