How do you avoid common planogram mistakes that hurt your sales?

1 Mistake 1: Not following the planogram

The first and most obvious mistake is not following the planogram at all. This can happen due to lack of training, communication, or compliance from your staff or suppliers. Not following the planogram can lead to inconsistent displays, out-of-stock situations, and confused customers. To avoid this mistake, you need to ensure that your planogram is clear, accurate, and accessible to everyone involved in the merchandising process. You also need to monitor and audit your planogram execution regularly and provide feedback and incentives to your staff and suppliers.

2 Mistake 2: Using outdated or irrelevant data

The second mistake is using outdated or irrelevant data to create or update your planogram. This can happen due to lack of market research, customer feedback, or sales analysis. Using outdated or irrelevant data can lead to poor product selection, allocation, and pricing, and miss out on emerging trends and opportunities. To avoid this mistake, you need to collect and analyze data from multiple sources, such as POS, loyalty programs, surveys, and social media. You also need to update your planogram frequently based on the data insights and the changing customer needs and preferences.

3 Mistake 3: Ignoring the customer journey

The third mistake is ignoring the customer journey when designing your planogram. This can happen due to lack of understanding, empathy, or segmentation of your target customers. Ignoring the customer journey can lead to ineffective product placement, grouping, and signage, and reduce the appeal and convenience of your store. To avoid this mistake, you need to map out the customer journey from the entrance to the checkout, and align your planogram with the customer goals, motivations, and pain points. You also need to segment your customers based on their demographics, behaviors, and attitudes, and tailor your planogram to each segment.

4 Mistake 4: Overcrowding or understocking your shelves

The fourth mistake is overcrowding or understocking your shelves with products. This can happen due to lack of space planning, inventory management, or demand forecasting. Overcrowding or understocking your shelves can lead to visual clutter, wasted space, and lost sales, and affect the customer perception of your store. To avoid this mistake, you need to optimize your space utilization, inventory levels, and replenishment cycles based on your sales data, product characteristics, and seasonality. You also need to balance your product variety, depth, and width to offer the right mix of products to your customers.

5 Mistake 5: Neglecting the visual appeal of your store

The fifth mistake is neglecting the visual appeal of your store when implementing your planogram. This can happen due to lack of creativity, branding, or differentiation from your competitors. Neglecting the visual appeal of your store can lead to bland, boring, and generic displays that fail to attract, engage, and retain your customers. To avoid this mistake, you need to enhance your planogram with elements of visual merchandising, such as colors, lighting, graphics, and props. You also need to create a distinctive store identity, theme, and story that reflects your brand values and personality.

6 Mistake 6: Not testing and measuring your planogram results

The sixth and final mistake is not testing and measuring your planogram results after implementation. This can happen due to lack of time, resources, or tools to evaluate your planogram performance. Not testing and measuring your planogram results can lead to missed opportunities, inefficiencies, and errors in your planogram strategy. To avoid this mistake, you need to set clear and realistic goals and metrics for your planogram, such as sales, margin, turnover, or customer satisfaction. You also need to conduct experiments, such as A/B testing, to compare different planogram options and identify the best ones for your store.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?