How to deal with the influx of data
Here are three ways to breakdown all the information out there
The data being offered today in the retail industry is overwhelming for most CPG suppliers.
Multiple retailers are providing store by store POS, consumer, and category data via retailer specific programs and from syndicated sources. Manufacturers are struggling and not sure how to handle multiple data sources from retailers.
The challenge for suppliers is what do you do with it? How do you afford it? Is the data useful? Do you participate?
It is important for suppliers to develop an analytical road map. An example would be to breakdown your information needs into three areas: strategic, operational, tactical.
Strategic is category and shopper analytics utilizing consumer and category data. This will help identify trends and consumer purchasing habits. The value in this data will help you partner with your retailers in building effective strategies and understand your brand performance.
Operational is monitoring in store execution utilizing store level pos, planogram, inventory, and audit data. The value is identifying and closing opportunity gaps, maximizing shelf edge and compliance.
Tactical is event and ad hoc analytics utilizing daily/weekly POS data. The value is tracking sales performance and promotional impact in order to course correct.
All three areas can deliver different ROI; collectively they achieve tremendous synergies and help set clear direction for the organization and its retail partners. The retail sales opportunity far out ways the cost to procure the data.
Building an analytical road map coupled with a technology road map will drive better usage of the data and set a clear direction for current and future data purchases. Better understanding your consumer, shopper and retailer partner is paramount to building brands and ultimately selling more.