Cardboard point-of-purchase (POP) displays are a powerful tool to boost product visibility and sales. However, to justify the investment and optimize future campaigns, it’s essential to accurately measure the return on investment (ROI). In this article, we explain how to calculate the ROI of a cardboard display and what factors to consider. How to Measure the Return on Investment (ROI) of a Cardboard Display
Why Measure the ROI of a Cardboard Display?
ROI helps determine whether the investment in a display generated the expected results in terms of sales, brand positioning, and customer conversion. Without this measurement, future decisions rely on assumptions, which can lead to unnecessary costs or missed opportunities.
Basic ROI Formula for POP Displays
The simplest formula to calculate ROI is:
ROI (%) = [(Revenue Generated – Total Cost of the Display) / Total Cost of the Display] x 100
For example, if a cardboard display costs $1,000 MXN and generates an additional $5,000 MXN in sales, the ROI would be:
[(5,000 – 1,000) / 1,000] x 100 = 400%
Key Factors to Consider
To ensure the ROI is as accurate as possible, you should include:
- Direct costs: design, printing, materials, shipping, assembly.
- Indirect costs: staff time, storage, maintenance.
- Direct sales increase: actual sales growth in the product category during the campaign.
- Additional benefits: new customer acquisition, brand recognition, brand preference, etc.
Tools to Measure Impact
- Sales comparison before and after: using historical point-of-sale data.
- Controlled sales tests in stores with and without the display: A/B testing.
- Customer surveys: to measure brand recall and perception.
- In-store data capture systems: such as traffic sensors or behavioral analysis cameras.
Beyond Sales: Qualitative ROI
Besides financial ROI, cardboard displays provide added value in:
- Enhanced brand positioning
- Visibility in premium store locations
- Reinforcement of promotional campaigns or product launches
Measuring these aspects may be more complex but offers a comprehensive view of the display’s effectiveness.
Conclusion
Measuring the ROI of a cardboard display not only justifies the investment but also helps optimize future campaigns, adjust designs, select strategic store locations, and improve overall point-of-sale performance. A comprehensive analysis that includes both quantitative and qualitative factors is key to maximizing the benefits of these marketing resources.
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