Content thumbnail Commercial Analytics for CP July 2014

Three points of failure Not prioritized Not sophisticated Not omni-channel enough enough enough The consumer products industry is Consumers like relevant, personalized Traditional retail channels are continuing relentlessly focused on the challenge offers and trusted experiences. They to consolidate, but the connection points of where and how to find growth. While reward manufacturers and retailers that for activating and engaging consumers executives struggle to unlock that puzzle, provide them: look at the success of are multiplying rapidly. To thrive in this they’ve been busy executing the one Amazon, Walmart or Unilever. But these omni-channel environment, companies strategy they can control — cost-cutting. are noble exceptions. For most companies must have speed and agility. Those are This might keep investors happy in the in the sector, their commercial execution two characteristics that many firms still short term, but is it a way to fuel long-term is just too blunt and generic to move the lack. Their old legacy working practices just growth? In a market that is contracting or performance needle. don’t enable them to deliver the integrated stagnant at best, the answer is probably no. The right combination of technology, data experience consumers want. New data capabilities can unlock additional and analytics can deliver the kind of granular The good news for them is that data and pockets of opportunity. Companies need to view that makes market tactics aimed at insights on how to win with consumers will start investing in them. broad “customer segments” obsolete. One continue to expand exponentially. And such Most companies are striking the wrong company we know grew its sales by 3% after data are increasingly available in near-real balance between what they spend on getting migrating from a channel-based view to time. But current decision-support systems data and what they invest in translating a “perfect store” understanding across its are based on stale, point-of-sale-centric data data into knowledge and action. The scales retail execution. A move to more granular delivered in periodic PowerPoint studies are generally tipped towards the former, at analytics enabled it to tailor its assortment, or monthly updates. In an always-on world, the expense of the latter. By contrast, the pricing and merchandising to local consumer products companies still seem to leaders in this area are those that have conditions and individual stores, thereby operate mostly “unplugged” when it comes got their priorities right. They are building driving growth. Even a small percentage to their decision-support technology. their data science and data management improvement, if sustained, can have a huge skills. They are developing their ability to impact on performance. translate analytics into insights. And they are establishing a culture of analytics. For a handful of these pioneers, new investments in data and analytics are a purposeful part New data capabilities can unlock additional pockets of their growth strategy, elevated beyond market research and insights. of opportunity. Companies need to start investing in them. Consumer Analytics | Point-of-view 3

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