12
Calculating ROI
ROI Calculation is Not Widespread
While ROI may be important as a desired metric, few
respondent companies actually calculated it. ROI, when
calculated, also varied among all the respondents regard
less of company type. Answers ranged from payback
on capital investments, to energy savings and customer
feedback.
Those who do calculate ROI, however, do it consistently;
the majority of whom calculated it on all their projects.
While desired ROI outcomes vary among groups, one
aspect was consistent among the
three: the typical timeframe for
calculating ROI was relatively short
term (more than 1 year, but less than
3 years).
Shop! found that 60% of retailer
respondents calculated ROI on
a store redesign. Only 27% of the
designer respondents calculated
ROI on a store redesign, and 19%
of manufacturer respondents
calculated ROI on products sold
for store design.
ROI is greater when a holistic
approach is taken. When the moti
vators are focused on subjective as
well as objective goals, the scope
becomes robust and impacts more
customer touch points, resulting in
a cohesive instore experience that
inherently reaps tangible results.
While objective goals of overall sales and instore traf
fic continue to be of high importance, more subjective
goals of brand perceptions and shopper engagement are
undeniably proving to hold significant value as they often
drive overall sales, albeit less directly and immediately. The
power of “buzz,” online reviews, bloggers, and others are
highly influential, whether positive or negative. The store
experience is a key touchpoint that can create passionate
brand advocates, or detractors.
“It’s impossible to know how long a redesign will last. We used to believe
seven years, but now we are looking
at five. Maybe this too will change soon,
but if so, we need to really look at how
to assess ROI and our whole way of what
redesign looks like. ” — retailer
KEY LEARNING:
Given the importance of ROI for retailers in
evaluating store design success, designers and
manufacturers must strive for the same metrics.
Tangible impacts on sales/profits, foot traffic, and
conversion rates are important, as are less tangible
impacts on brand perceptions, loyalty, shopper
engagement and experience.
Ph
ot
o: i
S
to
c
k
.
co
m/
Yah
orPia
s
ko
u
s
ki
2017 Shop! ROI Standards: Store Redesign