In Store Demo: Labor Shortage in the Wake of Covid

While the latest “model” of the virus still feeds passionate debates about masks and vaccines, many brands are starting to promote their products at retail stores again. The CPG brands and physical retailers interested in resuming their in-store sampling campaigns find that the brand ambassadors they used to depend on are no longer available. The lockdowns and public health directives decimated the market infrastructure as people were forced into relocating and taking on different career paths. As a result, some companies are now exploring alternative marketing strategies, such as influencer marketing and social media advertising, to reach their target audience. These methods, however, result in a less cost-effective and flexible approach to product promotion in the current market conditions. Naturally, the lack of brand ambassadors is only a small portion of the overall labor shortage that most companies in the nation are experiencing, but my exposure is primarily to in store demo management. There are multiple approaches to managing labor scarcity for in-store marketing:

‍

1. Abstinence: “We can survive without having in store demo.” I am sure you can, but acquiring new customers without helping them experience new products is very hard. “Sample and Buy” is much less expensive than “Buy and Return.”
2. Reset the compensation: judging by “wanted” ads on multiple job boards, most national agencies are still offering before-Covid rates, and I am not sure how many takers they get or what their quality is. The number of demos is down visually from the past, even at local Costco stores, even though their brand ambassador standards are not very high.
3. Optimize brand ambassador time and engagement management to increase “real” wages: brand ambassadors are paid hourly rates only for the time they engage shoppers in stores, plus travel expenses (not always). While the better ones are offered up to $25 per hour, optimizing process management to maximize their time in stores is important. This includes identifying high-traffic times and locations and providing them with the necessary training and resources to effectively engage with shoppers and promote the brand. Additionally, tracking their performance through regular evaluations and feedback sessions is crucial to ensuring they are meeting the company's expectations and goals. By doing so, the company can make informed decisions about improving its brand promotion strategies and increasing sales.

It is critical to understand that brand ambassadors' “real” earnings depend on the following: ‍

• How many gigs are offered per month?
• How long does it take to get there?
• How much time do they need to invest in product training?
• How long does it take to schedule a demo in a store?
• How long does it take to verify product inventory before the demo?
• How many in store demos get canceled? Some are canceled on arrival.
• How long does it take to report a post-demo?
• How long does it take to get paid?

Most high-quality brand ambassadors are self-employed, and while $25 per hour for 40 hours a week sounds like a reasonable income, 5–7 store sampling events per week at 4 (paid) hours per demo, with 1.5 hours per demo of unpaid overhead, is all they can expect most of the time. That is the difference of $1,600 per month, or the "real" rate of $18 per hour working part-time with no benefits. The point is you don’t need to bust your marketing budget to attract brand ambassadors capable of producing a healthy E2P (experience-to-purchase) conversion ratio. By offering multiple in store demos per day and providing better time utilization management, demo companies and field marketing organizations can attract and retain high-quality brand ambassadors who can effectively drive sales and improve the overall customer experience. This investment in smarter management will ultimately lead to a higher return on investment for the marketing budget. Playing it smart generates above-average returns for your business. Let's discuss how to revive your store experience and brand activation strategies in the wake of a pandemic.

Physical retailers can benefit greatly from hosting in-store demos without having to invest additional funds or resources. Most retailers are aware of demos and experienced the results they generate, BUT they see it as one off events initiated by Vendors and tolerated by Retailers INSTEAD OF as a valuable marketing strategy initiated and promoted by Retailers.

‍