The State of Data & Analytics in Consumer Goods
In an industry brimming with big data hype, new social media channels and more, CGT asks an executive from AFS Technologies to sort out these challenges and provide thought leadership for those taking on new initiatives in data and analytics:
CGT: How has the hype surrounding Big Data impacted existing data and analytics projects?
Whinnie: Big Data has encouraged solution providers to focus on delivering an analytics system that offers flexibility, ease of use and optimizes data storage, while simultaneously eliminating the complicated technical issues traditionally associated with Big Data Management. Today’s market requires unprecedented performance from an analytics solution as well as access to real-time data online, offline and on any device. With so much data available, the focus has shifted to providing data in a visually pleasing and digestible format to prevent data overload. When it comes to analytics and managing data, simplifying the scope of what CPG organizations view in a report is also key. All the collected data is of course relevant and valuable, but there is now a need to identify the most important data points and leverage that information quickly. This functionality empowers the organization, especially senior management, to easily access insights to the area effecting profitability. The ability to then drill down to a much more granular level further enables organizations to pin point problem areas and course correct. The age of the data is also paramount in the decision making process as old data that no longer represents the current situation can be a real liability.
Whinnie: With so many sources of data available today, it is easy for organizations to get lost in a sea of data. One of the most valuable sources of information for companies is the data captured at the store level. Every retailer has its own personality and floor plan, so gaining insight from field reps regarding a promotion that worked at ‘Store A’ but failed in ‘Store B’ is critical. Using data collected in the field, as well as data related to weather and local events, often reveals important factors that affect in-store performance and have a major impact on defining the “why.” For example, it’s obvious to everyone, except to an executive looking at a report 2,000 miles away, that the “Burgers and Chips in the Sun” promotion fell flat because of a late spring snowfall. Field personnel can also examine shelf layouts, size up the competition and gain a better understanding on how products are presented in each particular store. Scan data is also invaluable as it provides timely and granular data from retail outlets. This gold mine of information can help identify trends in the consumer landscape as well determine price elasticity and pricing thresholds and gaps.
CGT: How is consumer related data from social media activities being used? Are there new and innovative ways big data is being used?
Whinnie: CPG organizations are anxious to take advantage of the booming social media scene and utilize the data to strengthen customer relationships, ensure profitable promotions and maximize their return on investment. Valuable data does not have to cost a fortune. In fact, some of the most valuable data can be obtained from simple, low-cost social media campaigns. For example, if a consumer is looking for a variation of an in-store product, the manufacturer could have a simple QR code display that says “scan me for flavor options.” A simple mobile site can capture the user’s location and allow them to provide direct feedback to the Manufacturer. The Manufacturer has instantly gained immeasurable insights on product preferences, distribution and marketing campaigns. This type of information is invaluable for the sales team as well. Sales reps will gain more credibility during a re-order that includes a new flavor because they have fact-based data to prove customers are asking for it. By showing the Retailer a consistent trend of out-of-stocks for certain flavors, sales reps can leverage data to negotiate more shelf space. In the end, social media provides a useful mechanism to provide feedback and field level intelligence to the manufacturer.
ABOUT THE AUTHOR
Lisa Whinnie has over 20 years within all areas of Information Technology consisting of software development, professional services and customer support. Over the past 16 years, she has worked with end users to convert their business requirements into comprehensive, streamlined technical solutions. As Executive Vice President, Chief Customer Officer Whinnie is responsible for customer relations including customer service, customer communication, customer product positioning, ensuring the AFS strategy is aligned with customers’ objectives, including driving our Customer Advocacy and Consulting Group. Prior to joining AFS, Whinnie served as the IT Director for an international espresso distributor, Illy Espresso of the Americas, and was formerly the MIS Manager at the telecommunications company Executone Information Systems Inc. She holds a B.S. degree in Information Systems from the University of Phoenix.
CGT: How has the hype surrounding Big Data impacted existing data and analytics projects?
Whinnie: Big Data has encouraged solution providers to focus on delivering an analytics system that offers flexibility, ease of use and optimizes data storage, while simultaneously eliminating the complicated technical issues traditionally associated with Big Data Management. Today’s market requires unprecedented performance from an analytics solution as well as access to real-time data online, offline and on any device. With so much data available, the focus has shifted to providing data in a visually pleasing and digestible format to prevent data overload. When it comes to analytics and managing data, simplifying the scope of what CPG organizations view in a report is also key. All the collected data is of course relevant and valuable, but there is now a need to identify the most important data points and leverage that information quickly. This functionality empowers the organization, especially senior management, to easily access insights to the area effecting profitability. The ability to then drill down to a much more granular level further enables organizations to pin point problem areas and course correct. The age of the data is also paramount in the decision making process as old data that no longer represents the current situation can be a real liability.
CGT: Which data types and sources are most valuable to CG data and insights initiatives? How are they being leveraged?
Whinnie: With so many sources of data available today, it is easy for organizations to get lost in a sea of data. One of the most valuable sources of information for companies is the data captured at the store level. Every retailer has its own personality and floor plan, so gaining insight from field reps regarding a promotion that worked at ‘Store A’ but failed in ‘Store B’ is critical. Using data collected in the field, as well as data related to weather and local events, often reveals important factors that affect in-store performance and have a major impact on defining the “why.” For example, it’s obvious to everyone, except to an executive looking at a report 2,000 miles away, that the “Burgers and Chips in the Sun” promotion fell flat because of a late spring snowfall. Field personnel can also examine shelf layouts, size up the competition and gain a better understanding on how products are presented in each particular store. Scan data is also invaluable as it provides timely and granular data from retail outlets. This gold mine of information can help identify trends in the consumer landscape as well determine price elasticity and pricing thresholds and gaps.
CGT: How is consumer related data from social media activities being used? Are there new and innovative ways big data is being used?
Whinnie: CPG organizations are anxious to take advantage of the booming social media scene and utilize the data to strengthen customer relationships, ensure profitable promotions and maximize their return on investment. Valuable data does not have to cost a fortune. In fact, some of the most valuable data can be obtained from simple, low-cost social media campaigns. For example, if a consumer is looking for a variation of an in-store product, the manufacturer could have a simple QR code display that says “scan me for flavor options.” A simple mobile site can capture the user’s location and allow them to provide direct feedback to the Manufacturer. The Manufacturer has instantly gained immeasurable insights on product preferences, distribution and marketing campaigns. This type of information is invaluable for the sales team as well. Sales reps will gain more credibility during a re-order that includes a new flavor because they have fact-based data to prove customers are asking for it. By showing the Retailer a consistent trend of out-of-stocks for certain flavors, sales reps can leverage data to negotiate more shelf space. In the end, social media provides a useful mechanism to provide feedback and field level intelligence to the manufacturer.
ABOUT THE AUTHOR
Lisa Whinnie has over 20 years within all areas of Information Technology consisting of software development, professional services and customer support. Over the past 16 years, she has worked with end users to convert their business requirements into comprehensive, streamlined technical solutions. As Executive Vice President, Chief Customer Officer Whinnie is responsible for customer relations including customer service, customer communication, customer product positioning, ensuring the AFS strategy is aligned with customers’ objectives, including driving our Customer Advocacy and Consulting Group. Prior to joining AFS, Whinnie served as the IT Director for an international espresso distributor, Illy Espresso of the Americas, and was formerly the MIS Manager at the telecommunications company Executone Information Systems Inc. She holds a B.S. degree in Information Systems from the University of Phoenix.