Your planogram is more than just a layout; it’s a strategic asset that significantly influences your sales performance. A well-designed planogram ensures your products stand out and attract consumer attention in a crowded marketplace. Visibility is key—if customers can’t see your products, they can’t buy them. In fact, according to a report by PWC, 60% of out-of-stock situations occur due to planogram non-compliance, leading to an estimated 4% loss in sales.

A strong visual merchandising strategy, reinforced by strict planogram compliance, is essential for maintaining your competitive edge. Ensuring that retailers adhere to your planogram prevents unintentional changes in product placement or shelf space allocation, maximizing your products’ visibility and appeal. In this blog post, we’ll delve into the importance of planogram compliance and how it can propel your sales strategy forward.

Understanding Planogram Compliance and Its Crucial Role

Planogram compliance ensures that retailers follow specific guidelines to optimize product visibility and boost sales. Even with agreements on shelf space and placement, things can go wrong, like a competitor’s product mistakenly placed in your area or unintentional changes to your product arrangement. These slip-ups can lead to unnoticed products, slower sales, or even expired items on shelves, ultimately affecting your bottom line. Regular audits by your team are essential to correct these issues and maintain the agreed-upon planogram. While compliance is the retailer’s duty, ensuring it is up to you.

The Benefits of Planogram Compliance: Maximizing Retail Success

Boosted Revenue

A well-executed planogram ensures that your products are displayed exactly as intended, optimizing visibility and consumer engagement. This strategic layout aligns with shopper behavior, enhancing the overall experience and driving higher sales, ultimately boosting revenue. Reviewing past performance can also help fine-tune your planogram, leading to even greater success.

Reduced Stockouts

Planogram compliance ensures products are organized based on factors like demand and sales history, making it easier to monitor stock levels and prevent outages. With an effective planogram, retailers can quickly replenish items, ensuring they meet customer demand and avoid missed sales opportunities. Automated, AI-powered tools can detect non-compliance, helping you swiftly address any issues.

Efficient Shelf Space Management

By adhering to a planogram, retailers can optimize shelf space, placing products based on popularity, size, and sales data. This strategic placement not only maximizes space utilization but also boosts revenue potential and enhances customer satisfaction. Without compliance, competitors might seize prime spots, leading to less desirable outcomes.

Increased Accountability

Planogram compliance fosters accountability among store owners and retail chains. By following a set structure, retailers are more likely to maintain order and ensure products are in the right place. This alignment allows you to address any deviations effectively and strengthens the partnership between you and your retailers, leading to the overall success of your products.

Planogram Compliance Checklist

A checklist is crucial for planogram compliance, ensuring thorough in-store verification and boosting efficiency for sales reps, merchandisers, and auditors. It helps avoid missed details and flawed reports. Based on the brand’s priorities, the sales rep or merchandiser must review the following during in-store audits:

How to Ensure Planogram Compliance

Achieving planogram compliance is essential for optimizing sales performance across your retail network. However, enforcing this across numerous stores can be daunting. With the right strategies and tactics, you can streamline compliance efforts. Here are some key approaches:

Profile Your Stores

Store profiling offers crucial insights into consumer behavior, allowing for tailored planogram strategies. When your in-store efforts align with customer preferences, like product displays and arrangements, sales are likely to increase.

Use Ratings for Transparency

A rating system for planogram compliance activities helps you quickly identify non-compliant stores. This transparency is crucial for maintaining standards across all locations.

Rely on Visual Evidence

Forms can be error-prone, but visual evidence like photos or videos provides greater accuracy. Our Video Recognition and Burst Mode shelf scans help sales reps identify products and prices with high precision. This technology reduces errors and enhances efficiency, making the process smoother and more reliable.

 Leverage AI for Audits

Traditional planogram audits are often time-consuming and prone to errors. AI-driven audits accelerate data collection and analysis, improving accuracy and reducing costs. With Ivy Eye’s AI Engine, which boasts an impressive 97% accuracy, you can achieve even greater precision and efficiency.

Incentivize Compliance

Encourage retailers to follow your planogram strategy by offering incentives. Coupled with penalties for non-compliance, this approach ensures better adherence to your planogram guidelines.

These tactics not only enhance planogram compliance but also contribute to improved sales and efficiency.

Ensure Your Planogram Compliance with Ivy Eye Image Recognition

Planogram non-compliance is a significant barrier to ensuring your products are displayed and sold effectively. Product offtake hinges on consumers spotting your product amidst a sea of options, making planogram adherence crucial. Retailers may not always stick to the planogram, so it’s essential to enforce compliance through regular audits, responsible sales reps, and a powerful visual merchandising tool like Ivy Eye Image Recognition.

With Ivy Eye, you can easily compare the real planogram versus the optimum one, ensuring your displays meet standards and drive sales. Our solution facilitates seamless collaboration across all levels of your route-to-market, reinforcing planogram compliance as a vital component of your retail strategy.

Curious about how Ivy Eye can elevate your planogram compliance? Book a free demo today!