New research from Incisiv and MarketDial has highlighted the importance of sophisticated in-store testing methods to improve the success rates and return on investment (ROI) of retailers’ strategic brick and mortar initiatives. The study is based on a survey of 200 retail executives in the United States, conducted from February 9, 2023, to March 3, 2023, and suggests that retailers must adopt a structured and data-driven approach to in-store testing to improve the success rates and ROI of their strategic store initiatives.
The research reveals that retailers who don’t use specialized in-store testing software expect 61% of strategic store initiatives to fail. Additionally, 74% of retailers who don’t use specialized in-store testing software have inconsistent or infrequent testing practices. In contrast, only 13% of retailers conduct tests consistently, with a defined governance structure around how tests are approved, capital is allocated, and learnings are shared across the organization.
The study further highlights that 65% of retailers say identifying and mitigating potential risks before fully implementing an initiative would improve the success rates of their strategic store initiatives. Moreover, 56% of retailers are dissatisfied with their organization’s current ability to allocate resources to initiatives that are most likely to succeed.
The high rate of failed initiatives in the retail industry results in significant losses and missed opportunities, indicating that improving the maturity of in-store testing processes and systems is critical to drive greater success and ROI from these investments.
Morgan Davis, CEO and Co-Founder of MarketDial, stated, “At MarketDial, we firmly believe that scientific in-store testing is a necessary muscle that retailers need to build and maintain success and profitability. Incisiv’s research shows that adopting advanced in-store testing tools and technology can drive data-driven decisions for retailers and help them identify and optimize high-impact initiatives before scaling, ensuring maximum impact.”
Incisiv is a peer-to-peer executive network and industry insights firm for consumer industry executives navigating digital disruption. MarketDial provides retailers with the tools they need to validate initiatives quickly and confidently, offering accurate testing solutions and actionable insights with automated analytics and in-store testing tools.
In conclusion, the research highlights that retailers must adopt a structured and data-driven approach to in-store testing to improve the success rates and ROI of their strategic store initiatives. With the high rate of failed initiatives in the retail industry resulting in significant losses and missed opportunities, improving the maturity of in-store testing processes and systems is critical to drive greater success and ROI from these investments. Sophisticated in-store testing methods can help retailers identify and optimize high-impact initiatives before scaling, ensuring maximum impact, and driving data-driven decisions.
