Just like any new introduction within a retail organization, the program rollout should be gradual with a pilot program introduced first. This pilot should last long enough for evaluation by the KPIs.
This pilot period also enables the retailer to easily tailor and make changes to the program due to the smaller scale impact to customers. The retailer will need to decide which market location to pilot in, as this will determine how the program will work when rolled out to other markets.
For example, consider markets that have a wide variety of demographics and ABC stores. ABC stores are categorized by their size and selling pattern – “A” for large stores and “C” for low volume stores.
Another aspect to consider are the financial costs to plan, implement, support, and maintain the program. Some financial considerations are shown in Fig 3 below.