CPM issues guidelines to maximise sales

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Sales development agency CPM has combined its own ongoing shopper research with a range of consumer behaviour statistics* to produce a set of guidelines for brands on maximising sales from new product launches.

CPM sales and marketing director Andy Buck said: “It’s a stark fact that 95% of the 30,000 new consumer products that are launched each year, actually fail. Our Insight division has collected a number of statistics from a range of sources – including the Harvard Business School Press, One Poll and the Neilson Global Survey of New Products 2013 – and added these to our own findings. The resulting intelligence has enabled us to produce a set of guidelines that we believe will help brands to win those vital last 10 yards in-store.”

Top of CPM’s list is the need to ensure that the product is actually in-store and available to purchase and visible on Day One. “It sounds pretty obvious” added Buck. “We know that 70% of buying decisions are made in store and that 66% of shoppers are influenced to purchase a new product when they see it in-store. But, using Grocery as a prime example, the problem is that new products going into grocery in a range review will only be compliant in 60-70% of stores. So it’s over-optimistic to simply assume that new products will land first time and be unmissable.”

Similarly important is ensuring that promotions, if they are taking place, will be active from that very first day of product availability.

“New products and promotions drive 83% of unplanned purchases, and 80% of shoppers said they would buy from a new brand because of a promotion – so every missed day is a lost opportunity.” he said.

Sampling and engagement have emerged as critical factors in nailing NPD execution: 21% of people learn about new products through receiving free samples and 59% of shoppers are more likely to buy a new product when they are given a free sample.

And, according to Buck, in-store engagement is just the start of the word-of-mouth marketing process. “Consumers tell their friends – in fact 16% of consumers learn about new products from their friends and family, and 68% of consumers said they were more likely to buy a new product when they heard about it from a friend or family member. So in addition to offering samples, brand ambassadors need to make sure they are telling the right story in a compelling way. And because 60% of consumers prefer to buy new products from a familiar brand, shopper engagement in those early days helps to reinforce that bond.”

With online retailing increasing in importance, new products deserve the same focus online as in-store, according to CPM. Research has revealed that 19% of people think that searching online is the most important source of information on new products; also, 53% of consumers are more likely to purchase a new product when they have learnt about it through an internet search.

“In spite of this, we know that 28% of products sold through third party sites have description or listing errors, or gaps” said Buck. There’s a whole science behind digital content management – including findability, availability, merchandising, promotional compliance, advertising, search ranking, share of voice and customer review status.

Customer carelines and social media can also play a key role in monitoring the success of new product launches. In January CPM launched a social media engagement suite, Socialise, designed to listen and gather insight across the entire social space, and relay key messages to customer careline teams for responsive action. Clients receive a complete, integrated service, to monitor prevailing sentiment about a brand, company or organisation.

“Thanks to the immediacy of social media, brands can track take-up of, and response to new products from the first day of availability by region – and even identify where positive or negative feedback is most prevalent, in addition to measuring the success of specific promotions” said Buck.