Grocery retailers and CPG companies spend millions of dollars annually gathering, analyzing and applying consumer shopping data. But are those investments paying off in a competitive advantage?
In today's hypercompetitive grocery retailing market, operating without regard to the vast reams of available data seems foolish, but investing in that data without measuring the financial return is equally shortsighted.
"Retailers are in more of a dogfight for customer loyalty than ever before," says Patrick LaPointe, executive vice president of MarketShare, a predictive analytics firm headquartered in Los Angeles. "Knowing which programs and promotions are truly driving not just incremental traffic or incremental revenue, but actual incremental profit, is more important than ever before."
"Knowing which programs and promotions are truly driving not just incremental traffic or incremental revenue, but actual incremental profit, is more important than ever before."
The following five ways to create a competitive advantage from consumer insights include three top applications for shopper data and two key techniques to use the data to boost return on investment. Regardless of the application chosen, a strategic approach is essential. "Strategy is absolutely critical, especially so with big data. Simply diving into big data without an end in mind, or a clear view of what objective or challenge this is solving, will only result in wasted time and resources," notes Jeff Weidauer, vice president of marketing and strategy for Vestcom International, an in-store marketing services company based in Little Rock, Ark.