The Essential Guide to Store Compliance for Brands

15 Aug,2024

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Put yourself in the shoes of the average shopper… when casually strolling through the aisles with the mission of completing your weekly shop.

You’ll usually be drawn into the typical process of getting your usual go-to items or you may be on the hunt for some discounts and promotions to help you save a little extra cash. 

As a shopper, you expect that the products you’re looking for are presented clearly, are in stock, and feature all the correct pricing or promotional signage that you’d expect to see. 

These expectations are crucial for brands to meet when it comes to ensuring that customers add the desired item to their shopping basket, finalising that all-important sale at checkout. 

For a brand, these steps are known as store compliance – ultimately, this process ensures that brand integrity is maintained, sales are optimised, and the customer experience is enhanced. 

Brands have a responsibility of ensuring that their products are being presented in the best way, making the shopping journey as efficient as possible. On the other hand, brands have a responsibility to ensure that brands are happy.

It was recently reported in a study by Click2Buy that customers who experience stockouts are 40% more likely to shop with a competitor in the future.

This is clearly a risk that those focused on sales and longevity don’t want to bargain with.

To avoid the likelihood of it happening, they must ensure that they conduct regular stock checks so they’re aware of their inventory whilst keeping an eye on customer demand. 

Additionally, 62% of shoppers purchase items on impulse when attracted to an appealing display. This highlights the importance of keeping displays in the best condition to ensure that they are engaging. 

Whilst it’s true that the customers main focus is on the product itself, an appealing display could be the difference between shoppers completing a purchase or getting an alternative product from a competitor.

Here at Tactical Solutions, we understand the importance of retail compliance in helping to uplift the reputation of brands. 

We champion the products of our clients as if they are our own, working to help them achieve supermarket compliance to boost sales and keep customers engaged. 

Additionally, by building strong relationships in-store, we’re able to ensure promotions are strategically and attractively placed in order to attract customers and encourage impulse purchasing.

In this blog, we delve into the fundamentals of store compliance, its significance, the potential risks of non-compliance, and how to streamline the process with expert solutions.

Store Compliance: What is it and How Does it Work?

Store compliance means retail stores need to adhere to the set guidelines provided by brands regarding:

  • Product display
  • Pricing
  • Promotion
  • Overall presentation

These guidelines are essential to ensure that the brand’s vision and marketing strategies are effectively executed at the store level. 

As experts in our field, we know that brands face frequent frustration due to issues with their display – especially when they are deployed incorrectly which can lead to a loss of money and a loss of potential customers. 

To help avoid these issues from happening it is vital that brands carry out regular checks to ensure that displays are meeting all the correct standards. 

This means that interventions can be carried out quickly to avoid any negative impacts occurring.

If you’re someone who manages several stores, achieving retail promotional compliance becomes much more of a harder task that takes so much time and effort.

One important part of your field marketing strategy is that it needs to be consistent across all stores, if you fail to do this, it’s likely that your brand identity will suffer. 

There are many methods that brands can adopt to help achieve store compliance, these methods could involve:

  • Regular Audits: Brand experts will carry out scheduled visits to retail locations to undertake retail audits. In this they will check if products are in stock and displayed correctly, promotional materials are in place, and prices match the advertised rates.
  • Reporting and Feedback: Once these visits are conducted, data can be collected on compliance levels, identifying discrepancies and providing actionable feedback to store managers.
  • Training and Support: If further support is needed, it may be useful to implement brand training. By educating store staff on the importance of compliance and how to achieve it, they may be more likely to prioritise it.

By maintaining store compliance practices, brands can ensure that their products are consistently represented, leading to better customer experiences and increased sales.

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The Link with Promotional Compliance

Promotional compliance is a subset of store compliance focusing specifically on promotional activities. 

This includes ensuring that promotional displays are set up as planned, discounts and offers are correctly applied and visible to customers, and marketing materials (such as posters and flyers) are properly positioned.

Promotional compliance is vital for the success of marketing campaigns, as any mishaps can result in missed sales opportunities and a negative impact on brand perception. 

It will also have an impact on consumer trust if customers discover that a promotion appears to be available in one store and then see that it missing in another store, they may feel that they have been unfairly disadvantaged. 

Ensuring promotional compliance requires:

  • Detailed planning
  • Regular monitoring
  • Effective communication between brands

Why is Store Compliance so Important for Modern Brands?

With Forbes recently reporting the death of brand loyalty, it’s clear that there has been a shift in the way consumers shop and how brands communicate with them. 

Because the retail market is so competitive, maintaining store compliance is more critical than ever. 

Improve Your Sales Potential

When products are displayed according to brand guidelines, they are more likely to catch the attention of shoppers. 

By understanding key touch points or high areas of footfall traffic in stores, brands can insure that their products are in prime position for maximum engagement. 

Properly executed promotions can drive traffic and boost sales, while ensuring products are priced correctly can prevent potential sales losses due to pricing errors. 

Store compliance ensures that every element, from shelf placement to promotional signage, is optimised to maximise sales potential.

Bolster Your Brand’s Reputation

A consistent and high-quality in-store presentation helps to reinforce brand image and can build customer trust. 

Supporting this, it was recently reported that 68% of businesses said brand consistency was a major contributor to their revenue growth. 

Brand consistency is important as it helps to make a brand recognisable whilst ensuring that their values are communicated clearly. 

It worth noting that non-compliance can lead to a disjointed brand experience, confusing customers and damaging the brand’s reputation. 

With a massive 81% of consumers saying they need to trust a brand before they consider buying, this is something brand must get right as it could impact their future strategies. 

By maintaining strict store compliance, brands can ensure that their message is consistent across all retail locations, which is crucial for building and maintaining a strong brand identity.

Curate the Perfect Shopping Experience

The world of retail depends on how the consumer perceives the desired product. 

With one-third of customers (32%) saying they will walk away from a brand they love after only one unpleasant encounter, brands cannot miss their opportunity to impress. 

We know that impressions count and well-organised and visually appealing stores can significantly enhance the shopping experience. 

Customers are more likely to enjoy their visit and make a purchase when:

  • Products are easy to find
  • Retail promotions are clearly displayed
  • Pricing is accurate

The Dangers of Non-Compliance

Failure to adhere to store compliance guidelines can have several negative consequences for brands, including:

  • Lost Sales: Incorrect product placement, missing promotional materials, and incorrect pricing can all lead to missed sales opportunities and disgruntled shoppers.
  • Brand Damage: Inconsistent branding and poor in-store promotion execution can harm a brand’s reputation and diminish customer trust.
  • Operational Inefficiencies: Addressing compliance issues after they occur can be time-consuming and costly, diverting resources from other critical areas of the business.
  • Legal and Financial Risks: Non-compliance with regulatory requirements can result in fines and legal actions, further impacting the brand’s financial health. An example of this is if a product needs to be recalled from the shop floor due to ingredient issues. Failure to comply with this could lead to further dangers and could also have a negative impact on overall reputation. 

By proactively managing store compliance, brands can mitigate these risks and ensure a smooth, profitable operation.

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Store Compliance Made Simple with Tactical Solutions

Navigating the complexities of store compliance can be challenging, but by partnering with us, we can make the whole process a walk in the park. 

If you weren’t aware already, our data-led approach makes us stand out against the rest…

By combining our years of industry experience with dynamic data insights and technology, we provide our customers with granular information directly from the shop floor. 

We’re proud to offer our comprehensive services to help brands maintain high standards of store compliance, including:

Retail Audits: Our brand champions conduct detailed audits to assess compliance levels and identify areas for improvement. Currently, they carry out 3,700+ data-led calls per week, providing 1,000,000 interventions a year!

Training Programs: Despite our team consisting of varying roles and responsibilities, we like to make sure that the whole team is exposed to the same training and programmes to uphold and maintain the level of expertise that is expected of Tactical Solutions.

Real-Time Reporting: We utilise advanced technology to deliver real-time insights and data on compliance status, enabling swift corrective actions. Our POS and EPOS Image Recognition technology monitors pricing consistency, planogram compliance, and product availability. 

By leveraging our expertise, you can ensure consistent in-store execution which will help to protect your reputation, and drive sales growth. 

Store compliance is not just about following rules – it’s about creating a seamless, engaging shopping experience that benefits both the brand and the customer.

By understanding its importance, recognising the risks of non-compliance, and utilising professional services like those offered by us at Tactical Solutions, brands can achieve excellence in retail execution and enjoy the numerous benefits that come with it. 

If your product promotion isn’t going as planned or your marketing materials aren’t being used correctly, get in touch to see how we can help you ensure that your in-store channels are being used correctly, so that no sales opportunity gets missed!