Six Prerequisites for Promotion Excellence
As the recession continues to put pressure on the consumer goods (CG) industry, trade promotion investments are coming under intense scrutiny. One way to improve the ROI of trade programs is through the adoption of trade analytics, and a recent Booz & Company survey shows that the industry is indeed moving in this direction. CG companies with successful trade promotion operations must address six key areas as they build analytics capabilities:
1. Aligned Planning Processes: It is important that annual planning, account planning, target setting, funding and post-event analysis work together in an efficient manner.
2. Clear Targets and Dedicated Tracking: In addition to coordinated planning processes, analytic capabilities require a clear set of shared targets across the organization.
3. Integrated Customer Perspective: For analytics to be successful, the process output must facilitate customer discussions that result in mutually beneficial promotions.
4. Date and Modeling Integrity: Many companies have reported lack of adoption because sales teams did not feel comfortable with the output from the analytical tools.
5. Clear Decision Rights, Roles and Incentives: A plan clearly defining and describing the nature of the roles, responsibilities, daily work habits, and even incentive structure changes needs to be developed as part of the implementation program.
6. Change Management and Training: It is critical to the success of the project that programs, including user involvement, communications and training, accompany the roll out of the capabilities.
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1. Aligned Planning Processes: It is important that annual planning, account planning, target setting, funding and post-event analysis work together in an efficient manner.
2. Clear Targets and Dedicated Tracking: In addition to coordinated planning processes, analytic capabilities require a clear set of shared targets across the organization.
3. Integrated Customer Perspective: For analytics to be successful, the process output must facilitate customer discussions that result in mutually beneficial promotions.
4. Date and Modeling Integrity: Many companies have reported lack of adoption because sales teams did not feel comfortable with the output from the analytical tools.
5. Clear Decision Rights, Roles and Incentives: A plan clearly defining and describing the nature of the roles, responsibilities, daily work habits, and even incentive structure changes needs to be developed as part of the implementation program.
6. Change Management and Training: It is critical to the success of the project that programs, including user involvement, communications and training, accompany the roll out of the capabilities.
To read this article in its entirety, click here.