PORTLAND, Ore.—October 3, 2007—Healthnotes, the leader in interactive wellness-driven marketing for retail, today announced results of a comprehensive in-store test conducted by an independent third party showing that their health & wellness program, including interactive kiosks, signage, and promotions, drives incremental sales and strong ROI.
Wisner Marketing Group, Inc., a research firm specializing in retail and consumer trends, analyzed sales data from a major retail chain to determine the long-term sales impact of the wellness program. The test showed that stores with the Healthnotes "Fresh Ideas" program had nearly 2% higher sales growth and were 16% more likely to outperform control stores. While the specific retailer’s financial results cannot be revealed for confidentiality reasons, a storewide deployment impacting relevant departments (i.e. pharmacy, meat & seafood, produce, nutrition, and wine & cheese) that ordinarily generate $15M in annual sales would grow sales at least $250,000, representing a 5-year ROI of 200%-500% from the Healthnotes program.
"Retailers have known for a long time that shoppers love having easy, reliable access to ideas and information to help them make decisions in the store," stated Jim Wisner, president for Wisner Marketing Group. "What this new study demonstrates is that retailers can achieve these benefits in a way that helps create a destination shopping experience while profitably driving new sales."
The Healthnotes "Fresh Ideas" program is a kiosk-centered wellness marketing program for food and drug retailers that provides shoppers with seasonally relevant point-of-sale articles, recipes, and product information for key departments throughout the store—including meat & seafood, produce, wine, pharmacy, and nutrition. According to numerous studies by the Food Marketing Institute and other industry experts, shoppers want recipes and wellness information available in-store; however, retailers have been hesitant to provide this value-added service without understanding the true impact on their bottom line.
"We are excited that the results of this study clearly demonstrate sales lift and ROI of the Healthnotes program. Retailers can see a significant overall impact on their business and be confident that the investment pays for itself in a matter of months. When additional benefits like increased shopper loyalty, a more engaging shopping experience, and competitive advantage are factored in, our program becomes even more compelling for food and drug retailers," stated Dr. Skye Lininger, Healthnotes president and CEO.
The In-Store Test and Results
The Healthnotes "Fresh Ideas" program was implemented in 67 stores of a major retail chain. To assess impact on sales, year-over-year changes in the sale of health-related categories including OTC medications, vitamins, supplements, and nutritional products were compared between test and control stores during the fourth quarter of 2006. Usage stats were reported from participating stores via Healthnotes enterprise-wide connectivity solution. New stores, newly remodeled stores, and those impacted by new competition or other extraordinary factors were excluded from the compari¬son. The sales changes in test stores were compared to a control group of stores in the same geographic area as each test store. These differences were then analyzed to test the validity of the results. Test results quanti¬fied the value of providing health and wellness information via an in-store program.
Compared to the control stores, the test stores showed:
- 1.8% incremental growth in overall sales in the measured categories
- 16% greater likelihood of outperforming control stores
Additionally, when stores were segmented into groups based upon the length of time kiosks had been installed, incremental gains continued into the third year.
Implications for Food and Drug Retailers
This test confidently addresses key retailer concerns around upfront implementation costs and benefits that were previously hard to measure: kiosk-based wellness programs drive incremental sales and strong ROI, and are a compelling, cost-effective way to create a destination shopping experience and enhance customer loyalty. This study was large enough to control for other variables, and adds to the evidence that there is a clear financial payback to providing an easily accessible wellness program as part of the shopping trip. Visit healthnotes.com/showcase.php for a free copy of the case study.
About Wisner Marketing Group
Wisner Marketing Group Inc. (WMG) conducts research for a wide range of clients interested in understanding the behavior of the self-care consumer in a retail environment. WMG also assists retailers, manufacturers, trade associations, and others in developing and implementing solutions to complex marketing issues. For more information, visit www.wisnermarketing.com.
About Healthnotes
Healthnotes Inc. is the leading provider of wellness-driven marketing programs for retailers, publishers, and manufacturers. Healthnotes helps marketers leverage the powerful health and wellness trend to connect with consumers at the point of decision—in-store and online. The Healthnotes network drives more than 50 million consumer visits annually across thousands of retail locations and websites worldwide, including nine of the top ten U.S. grocery retailers. Visit www.healthnotes.com for more information.
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Note to editors: HEALTHNOTES is a registered trademark of Healthnotes Inc.
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