Brands Want More Insights from POS Data: Study
Brands are focused on leveraging data to build more collaborative relationships with their retail partners, says a new study. Yet despite a significant push to be more collaborative with their retail partners, brands still feel they can be doing more to leverage data.
According to the 2018 POS Data Study conducted by Askuity, a retail sales enablement platform for brands, an overwhelming majority of those surveyed – 92% – feel that they can be doing more with point-of-sale data to fuel growth and build more collaborative relationships with their retailers.
As retailers increase the pressure on brands to justify their on-shelf presence, brands are turning to point of sale data to better forecast sales, improve promotional effectiveness and reduce out of stocks. I
The annual report acknowledges that although vendors have many difficulties in how they currently receive data from their retailers, they are optimistic about the benefits that come along with making better use of this data moving forward.
Key highlights of the report include:
- An Important Partnership: Nearly six of ten respondents (57%) acknowledged that they could be doing more to strengthen their buyer relationships by leveraging POS data.
- Store-Level Execution: Eighty-one percent of brands said that their field sales team would benefit from having POS on their mobile devices, yet only 53% were providing this level of insight to their field sales team.
- The POS Revolution: Brands indicated that they are most interested in leveraging POS to improve planning and forecasting, gain better visibility into new product launches, enhance promotions and reduce out of stocks.
- Onwards & Upwards: Sixty-three percent of brands are looking to move away from applications such as Excel in an effort to improve POS reporting and analytics.
“With retail rapidly being re-invented by technology, brands and retailers need each other more than ever. This study confirms that leading consumer product companies are looking to integrate point-of-sale data into all aspects of their operations in order to adapt and grow their business,” said Eric Green, CEO of Askuity. “We believe that brands who harness the power of retail data successfully will be the winners with both consumers and retailers in the new world of retail.”
The second annual study conducted by Askuity was designed to measure the current challenges and opportunities that exist for product suppliers distributing to national retailers across North America. The study included nearly 500 respondents representing all major categories, from Home Improvement to Beauty and Personal Care.
For more information, visit www.askuity.com.
Most Consumers to Grocery Shop Online by 2024
In as few as five-seven years, 70 percent of consumers will be grocery shopping online. An estimated $100 billion in purchases, which is equivalent to every U.S. household spending $850 online for food and beverage annually, will occur by 2022 or 2024.
That is one of the findings from the “Digitally Engaged Food Shopper,” a study from the Food Marketing Institute (FMI) and Nielsen, released at the FMI Midwinter Conference in Miami recently.
Building on the joint research findings issued in 2017, this second set of insights also examine what CPG manufacturers and brick-and-mortar retailers need to do to ready themselves for the rising digital grocery landscape.
Key findings from this year’s study show that omnichannel shopping has passed the tipping point with online grocery shopping on an accelerated path to industry saturation. The first year of research predicted that consumer online food and beverage spend could reach $100 billion by 2025. FMI and Nielsen now contend that the pace of change and adoption has far exceed initial predictions and could cut the timeline by as much as half.
Two crucial parts of the research were the FMI-Nielsen Digital Readiness Assessment Survey and in-depth interviews across many operational functions of grocery retailers and manufacturers. That work revealed the following six organizational imperatives that can help trading partners accelerate their omnichannel success:
- Align Organizational Structures for Omnichannel Success: Integrate digital offerings in parallel with brick-and-mortar operations.
- Address Discrepant Data Sets: Scrub master data files for discrepancies; strength in data and accuracy is a critical component to successfully support online sale efforts.
- Integrate Forecasts to Increase Operational Efficiencies: Integrate online and offline forecasting so the right amount of inventory is available to meet orders through either channel.
- Optimize Shopper Insights: Bring retailer and manufacturer shopper information together into a single, comprehensive view of customer insights.
- Improve Marketing and Promotions: Optimize the management of omnichannel marketing and promotions.
- Merge Digital and In-Store Shelf Capabilities: Manage the physical shelf and its digital counterpart to create a seamless shopping experience, where consumers see the same information both on or offline.
“People, process and technology are the trifecta for a true omnichannel collaboration model,” said FMI Chief Collaboration Officer Mark Baum. “No matter the maturity stage, food retailers and their CPG business partners will find value in leveraging these six organizational imperatives as they respond for a more digitally engaged consumer.”
CPG Supply Chains Can Adapt to Disruption in Grocery
Online shopping, new digital technologies, and increasing channel fragmentation are intensifying the pressures on US consumer packaged goods (CPG) supply chains. Clear steps that CPG companies must take to prepare for this disruption are contained in a new report authored by The Boston Consulting Group (BCG) and commissioned by the Grocery Manufacturers Association (GMA).
Among the issues addressed in the report: e-commerce sales growth, service-level performance, channel proliferation, network design, and cash management trends. The report is based on the 2017 Supply Chain Benchmarking Study, a study of the US units of more than 30 leading CPG companies conducted jointly by BCG and GMA.
“It’s been a turbulent couple of years for the grocery industry, with major disruption and dislocation in the retail landscape,” notes Daniel Triot, senior director of the Trading Partner Alliance of GMA. “Despite the important performance gains in the supply chain in the past two years, CPG companies cannot be complacent. This report aims to provide guidance for CPG companies looking to harness new digital technologies and trends to support continued growth.”
A copy of the report can be downloaded here.
Call for Speakers for LEAD Marketing Conference
The Shopper Technology Institute (STI) has issued a call for speaker/sponsors for its 13th LEAD Marketing Conference set for Thursday, April 26.
LEAD is a virtual event that features some of the industry's most knowledgeable experts speaking on topics in the Loyalty, Engagement, Analytics, and Digital Applications areas.
For information about speaking opportunities, please contact Linda Winick at firstname.lastname@example.org or 216-534-9933.
Technology Ethnographer to Headline GS1 Connect 2018 Conference
Technology ethnographer Dr. Tricia Wang and CNN commentator Mel Robbins will be keynote speakers at the GS1 Connect 2018 conference and exhibit June 5-7, 2018 at the JW Marriott Phoenix Desert Ridge in Phoenix.
The theme of the conference, “Accelerate,” reflects the urgency and velocity of change needed to evolve at the pace of the consumer, technology and business models. GS1 Connect content will showcase how companies and industries can leverage GS1 Standards to speed business process transformation, collaboration and innovation.
Dr. Wang will share the importance of making customer-responsive investments in data to spot opportunity, power informed decision-making, and achieve organizational growth. She will provide real-world examples of how companies can identify Big Data pitfalls and achieve digital transformation by exploring the human side of data.
During her keynote address, Ms. Robbins will inspire attendees to embrace innovation by avoiding key mistakes that could be holding them back. After the session, attendees will have the tools to become agents of change to effectively move their ideas and organizations forward.
“Today’s fast-paced, digitally-dominated environment is creating new business opportunities for organizations globally,” said Bob Carpenter, president and CEO of GS1 US, host of the event. “Mel and Tricia will energize attendees to embrace potential challenges and motivate them to stimulate innovation personally and within their own organizations to drive growth.”