How to grow the performance of your retail promotions? The 1% rule

Discover in this article how to maximize the effectiveness of your retail promotions with accurate in-store data.

Rosalie Geisler
Rosalie Geisler

Customer Success Manager, Roamler

With pressure on resources and rising wages, it has become more challenging for retailers to ensure that customers can find the groceries they are looking for every day. In these times, for both retailers and manufacturers, it is more important than ever to get the most out of their investments. Especially within promotional sales, there is still a lot of growth to be achieved. If executed perfectly, promotions are of great value to both the retailer (contribution) and the manufacturer (turnover).

However, what is the current appearance of your promotion display on the shopping floor? Are your products still present at the promotion’s location? Most manufacturers don’t know. They depend on the retailer to execute their promotion. Many uncertainties are accepted, when they can be much more in control and therefore can get a better result. The contrast here is great with online promotions. With a manufacturer’s online promotion, they know exactly what the quality of execution is. It is checked whether the URL works, which banner attracts the most attention and how often it is clicked. With offline promotions, none of this is clear. Sales are still being missed due to substandard execution, while data and insights to improve this are more accessible than ever!

"Sales are still being missed due to substandard execution, while data and insights to improve this are more accessible than ever!"

The numbers are shocking: looking at the past 12 years in which we monitor promotions, we still see that execution scores of 80% or higher are exceptions. In some cases, the score does not even exceed 40%. Scores in the Out Of Home segment are even less glorious.

There is another way: the 1% rule. Imagine knowing exactly how every promotion was executed in-store from now on? Thanks to promotional insights via crowdsourcing, this data is easily, quickly and widely available. We call this the 1% rule: add 1% (often even less) to the promotion budget to gather the insights needed to earn (or save) much more money in the overall promotion program. Combined with the available sales numbers and a very targeted analysis, improvements for future promotions are now possible.

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What are the consequences of the 1% rule?

Higher resale
Especially if a promotion is present for a couple of weeks, it pays off to closely monitor execution in the first days of the promotion. Where it is underperforming, immediate action can be taken. As a result, more sales are benefited even during the promotional period.

Continuous learning pays off
Through A/B testing of mechanisms, it becomes clear which works and which does not even with one promotion. It also becomes clear which materials work at which location and which do not work or work less at which location. All these ‘learnings’ ensure continuous improvement of your promotions, resulting in more sales or lower costs!


•  Is there any examples of specific actions or strategies that retailers and manufacturers can take to improve promotion execution based on the insights gathered through the 1% rule?

Retailers and manufacturers can take various actions to improve promotion execution based on insights gathered through the 1% rule. For example, if data shows that certain promotional materials are more effective in specific locations, retailers can adjust their placement accordingly. Additionally, retailers can implement immediate actions to address underperforming promotions, such as replenishing stock or adjusting pricing strategies to maximize sales during the promotional period. Manufacturers can also use A/B testing to experiment with different promotion mechanisms and materials, allowing them to identify strategies that yield the highest returns.

•  Are there any potential challenges or drawbacks associated with implementing the 1% rule, and how can these be addressed to ensure its effectiveness in optimizing retail promotions?

While implementing the 1% rule can offer significant benefits in terms of optimizing retail promotions, there may be challenges or drawbacks to consider. For instance, allocating additional budget towards gathering promotional insights may initially appear costly, particularly for retailers operating on tight budgets. Additionally, ensuring the accuracy and reliability of crowdsourced data may require careful oversight and quality control measures. However, by addressing these challenges proactively and focusing on the long-term benefits of data-driven promotion optimization, retailers and manufacturers can mitigate potential drawbacks and maximize the effectiveness of the 1% rule.

Roamler, a partner for crowdsourcing

Many companies already use crowdsourcing to maximise their sales. Would you also like to know how to get more results from your offline promotions?