Demo’s For Dollars
Do In-Store Product Demonstrations Drive CPG Retail Sales Velocity?
In-store Consumer Packaged Goods (CPG) product demonstrations can significantly drive retail sales. They are expensive and labor intensive…but they still work. Here's how:
Direct Engagement: Demonstrations allow consumers to interact with the product directly. This hands-on experience can create a stronger connection and encourage immediate purchases.
Product Education: Demos educate consumers about the product’s features and benefits, often addressing common questions or concerns on the spot. This can be particularly effective for new or complex products.
Brand Awareness: Demonstrations increase brand visibility and awareness. When consumers see and try a product in-store, they are more likely to remember it and consider it in future purchases.
Impulse Buys: Engaging demonstrations can spur impulse buys. Shoppers who hadn't planned on purchasing the product may be swayed by a compelling demo and a special offer.
Feedback and Insights: Brands can gather immediate feedback from consumers during demonstrations, gaining insights into consumer preferences and perceptions which can be invaluable for refining marketing strategies.
Building Trust: Seeing and trying the product firsthand can build consumer trust, especially if the product delivers on its promises during the demo.
Just Google it. There is substantial evidence from various studies and market analyses supporting the positive impact of in-store demonstrations on sales. For example, a recent study published in the Journal of Retailing and Consumer Services found that product demonstrations significantly increased sales and product trial rates.
Overall, when executed effectively, in-store CPG product demonstrations can be a powerful tool for driving retail sales. For this reason brand managers should consider scaling up retail distribution slowly to ensure that when your product is added to stores, you are forcing consumer trial, adoption and ultimately repeat sales. Once you have established a loyal consumer based in a store or set of stores…add more.
Lastly, for those of you who don’t think that strong conventional Brick & Mortar sales drives E-commerce sales…YOU ARE DEAD WRONG.
