One thing is certain: Your multichannel shopper marketing campaign is an investment worth making. But how do you budget for a shopper marketing campaign or consumer promotion?
Today, about 73% of customers use multiple channels during their shopping journey, according to the Harvard Business Review. For grocery brands and retail marketers, reaching these consumers effectively is vital. So, what does a multichannel shopper marketing campaign cost? Let’s dive into the challenges, benefits and factors that go into budgeting for a successful campaign.
Challenges and Benefits of Shopper Marketing: What to Expect
Embracing the Multichannel Shopper Marketing Challenge
Multichannel retail marketing is complex, crowded and competitive, but the rewards are worth the effort. The challenge lies in standing out from the competition by creating a seamless, consistent experience across various platforms and touchpoints, all while engaging your audience and driving sales.
The Perks of Going Multichannel with Your Retail Campaign
By adopting a multichannel approach, you can improve brand awareness, increase customer engagement and boost sales. In fact, businesses that use multiple channels experience a 9.5% year-over-year increase in annual revenue and a 7.5% decrease in cost per contact compared to single-channel campaigns, according to Aberdeen Group.
In the short term, you’ll drive sales via increased demand and conversions which will prove to the retailer that your product is worth carrying. In the long term, you’ll cultivate brand loyalty and activate brand advocates which will lower your customer acquisition costs over time. By establishing your brand as a trusted partner that can bring the category to life for your retailer, they’ll likely increase your distribution footprint which leads to more… wait for it… SALES!
But even if you recognize the rewards waiting on the other side of your omnichannel campaign strategy, we still must answer the question: “How do you budget for a shopper campaign or consumer promotion?”
Crafting Your Retail Marketing Budget: Key Considerations
1. The Campaign Hook
A compelling campaign hook is crucial to engage shoppers. Your campaign hook can be anything from a charitable cause to a sports sponsorship to a sweepstakes. Developing a creative concept that resonates with your target audience can range widely from a few thousand dollars to upwards of $50,000, depending on the complexity and reach of the campaign. This investment should be weighed carefully to maximize the impact of your budget.
2. Digital Experience
Today’s buyer’s journey primarily takes place online and, as such, your campaign needs a mobile-friendly, digital hub to funnel the bulk of your user traffic. This digital component of your retail marketing campaign may involve a simple landing page or a more immersive shopper experience. Expect to invest between $5,000 and $50,000 for a robust digital presence.
Next, consider your store-locator. Since your digital experience should funnel consumers to purchase as quickly and easily as possible, a non-existent or slow store-locator can drive shoppers away and cost you money. Typically, we recommend Destini, which starts around $10,000 for the year.
3. Paid Media Strategy
Your paid media strategy, spanning social media to retailer media, can make or break your campaign. Depending on your objectives, ad spends can range from $10,000 to over $100,000. As a rule of thumb, we suggest allocating at least 20% of your overall budget to paid media support. Since this aspect of your campaign is so critical, we recommend working with specialists to ensure you’re properly allocating funds. We leverage multiple vendors and closely analyze their performance to help clients maximize their ROI.
4. Creative Development
Whether you’re managing creative development in-house or outsourcing to a third party, quality creative takes time and money. Developing eye-catching visuals, ad copy and other creative elements for a multichannel campaign can cost anywhere from $10,000 to $75,000, depending on the scope and production quality.
In general, the creative needs for most multichannel retail campaigns include:
- A sales-sheet for your retail partners
- In-store merchanting and displays
- Microsites or campaign landing pages
- Multiple paid media ads across multiple channels
- Email newsletters and autoresponders
5. Legal Fees
Don’t forget the legal fees required to ensure your campaign complies with all necessary regulations. Covering yourself from a legal standpoint is a necessary evil to protect yourself from shoppers out there who will try to capitalize at your expense on poorly worded legalese. This will typically set you back around $1,500 to $5,000, for more for complex promotions.
6. Signage and Displays
In-store signage and displays that drive conversion are essential for your consumer promotions. Ideally, they will interrupt the shopper experience and drive action at the store level. When budgeting for retail merchandising, the three biggest elements to consider are printing, shipping and merchandising – you’ll need someone to print the collateral, ship it to retail and set up the display in store. Budget for these elements can range anywhere from $5,000 to $30,000.
7. Price Promotions and Rebates
Lastly, factor in the cost of price promotions and rebates included in your campaign. Today you can execute price promotions directly through your retail partners or through third party providers like Ibotta. These expenses can vary widely based on the depth and reach of your promotional activities.
When planning for a price promotion, you need to consider both the marketing expenses related to promoting your offer as well as the cost of coupon redemption. Many brands keep marketing dollars and trade dollars separate, but they still contribute to the overall campaign expense and ROI.
Choose the Right Partner, Stay on Budget
While retail marketing is complex, partnering with the right experts shouldn’t be. At Cliffedge Marketing, we make it easy to bring campaigns to life quickly and easily – while staying true to your campaign budget.
With a strategic approach and a keen eye on your bottom line, we’ll help you navigate the multichannel landscape and achieve your retail brand goals one perfectly executed campaign at a time. Get started today with a quick chat to learn more about our unique approach.
