With Valentine’s Day around the corner and Back to School just concluding, busy retail marketers will now be assessing the lift in the three-week post-Christmas sales period and comparing that with marketing expenditure to calculate the return on their marketing investment.
Australian shoppers were expected to spend $18 billion in the post-Christmas sale period in stores and online, an increase of close to 3 per cent on the previous year.
That was coming off the back of an estimated $50 billion in pre-Christmas sales, according to the Australian Retailers’ Association, which was predicting a 3.96 per cent increase in online sales this Christmas.
If the figures bear out the forecasts, it won’t be a bad performance, especially given the (albeit surprisingly low-key) launch of Amazon Australia late last year.
Measuring true ROI on retail marketing
But when these ROI calculations are being made, how many retail marketers can say they know the true cost of the campaigns they launch? Most are underestimating the costs involved.
There are few sectors that are as competitive as retail, and marketers must not neglect to measure the internal costs if they are really looking to identify how to spend their marketing dollar most effectively.
Because when marketers get their internal house in order, the cost of marketing can be dramatically reduced.
A few things to consider:
- Marketing request approval times
- Marketing campaign planning time
- Collaboration time
- Work-in-progress reporting time
- Briefing and re-briefing time
- Can existing assets be found/reused?
- Studio head hours
- Legal and risk approval time
- Efficiency of handovers
- Creative approval time
- Were media deadlines met?
Cost-savings can be significant
The internal costs associated with marketing campaigns are often a significant overhead on top of agency and production costs. And if a retailer has an in-house design studio or content team, in addition to the digital team, the internal costs will comprise the bulk of some campaigns.
Those costs are generally measured in time, and time is money. Implementing a modern marketing resource management system to help streamline retail marketing operations saves time.
One high-turnaround internal creative team has estimated a more than 50% reduction in internal costs just from using Simple to help streamline:
- marketing requests
- briefing and agency communication
- Internal workflows
- asset management
- markup and approvals.
So put some time and budget back into your next retail sales season and look into implementing MRM 2.0 with Simple, book a demo to see how it works.