How to measure your super demo success
You’ve been planning your super demo for months. You’ve picked the best time for your demo, you’ve found the right people to run it, and you’ve worked closely with Costco to ensure that it comes off well.
But… what does “well” mean?
You want to make sure your super demo was worthwhile in tangible terms. Money in, results out. You’re after Return On Investment (ROI), which means the demonstrable impact the super demo has had on your bottom line. Ultimately, you’re looking for sales.
How does a super demo improve your sales?
Most vendors measure the success of their super demo on sales; many compare sales during the demo to a control warehouse where there isn’t a demo running, usually the same day the week before the super demo. But the impact isn’t necessarily immediate; the uplift might not materialise straight away.
With some products, like consumer goods at a low price point, people either buy on the day or they don’t. It’s comparatively easy to judge the sales during the demo period with those the month or week before, or during the last holiday season. By looking at percentages of sales and the incremental value of sales through Costco tills, we can find a direct link between super demos and super sales.
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Other products — like the Philips hair remover we discussed earlier in the series — demand a longer view. If each unit sells for two or three figures, the purchase isn’t likely to be an impulse buy on the demo day. The demo piques someone’s interest; they go home, research the product, look at it in more detail or look up reviews. Next time the demo comes around, it puts the product back at the top of their mind, and they’re more likely to buy. The return here is more indirect, coming in the form of influence on an eventual buying decision; that indirect impact needs a different approach to measurement.
When they plan super demos, brands like Philips identify the key times of year and plan activities to stimulate purchases throughout the season. They track sales across the whole season, carrying out follow-up activities with customers to establish what made them buy, and whether the demo was part of that journey from “interested” to “bought it”.
Setting your expectations for your super demo
Even if you don’t see immediate, on-the-day returns, the feedback from vendors has shown us that super demos do pay off in the long term, even for higher ticket items with longer decision-making processes. Here, bear in mind that Costco are protective of their sales data; we only get to see the figures from the demo days themselves. For more detail around long-term data you will need to speak with your Costco buyer.
This means, in real terms, that you need to set your own expectations, based on your own sales figures and projections; it also means that confirming the ROI of your super demo relies on you watching that data in the medium and long term.
Put simply, then: yes, super demo success is all about sales. Some products, especially at lower price points, may see a sales boost on the day. But others may have to integrate their super demo into a longer customer journey, playing the long game. In either case, follow our advice and your super demo will pay off.
If you want to find out how we can help you bring the human touch to your product demonstrations, give us a call today on 01306 644665.