Business Tip 16
Knowing Your Shoppers and Understanding When You Know
Too Much

Who is “Joe the Shopper?”

In the world of category management these days, the buzzwords on everyone’s mouths are “shopper insights."  Instead of taking broad generalizations to category insights, companies are now utilizing deep dive analysis on individual shoppers to gain multi-layered insights. With the current state of the economy and companies looking everywhere to cut costs, shopper insights now provides category managers with deep insights that provide robust and profitable results. Borrowing some words from the new President-Elect, Barack Obama, category managers are learning to use a scalpel instead of a hatchet when it comes to understanding their customers.
                                                                       
With elections, winning the vote depends on knowing your base.The same is true for companies where for too many years, category managers have failed to notice that the key to obtaining explicit insights is to understand and know their core consumers. Shoppers tend to exhibit clear, distinct patterns and behaviors when they shop, which allows category managers to utilize a different level of insight to create new initiatives. Without knowing who you are selling to, it begins to feel like you are putting the cart before the horse so to speak. Taking the time to intimately know your consumers allows companies to provide unique retail objectives that work effectively. 

Delving into Data and Extracting Insights

However, companies must avoid the Catch-22 of having “too much information." While having a deeper understanding of your consumer helps increase profitability, the trick is understanding how to integrate data sources together to develop a complete picture. While shopper insights provide a new level of analysis, category managers must be careful not to forget that insights data is only one piece of the larger puzzle.  

The question left is what do you do once you have all of this data? Software tools, such as XP3 Data Workshop merges data into one version of truth which encapsulates the entire perspective of a retail campaign. The overall purpose of obtaining large amounts of data is to filter and funnel it down into direct and correlating results pertinent to the company’s overall retail objectives. To do this, companies must deal with the painstaking task of creating Microsoft PowerPoint presentations that capture the key aspects pulled from the data.

Technology is your Friend

One of the easiest ways to cut costs and integrate mountains of data into one overall picture is to capitalize on the advancements of technology. Saving time by automating data integration and analysis will save companies infinite amounts of money over the years. Companies, like Interactive Edge, offer an entire suite of products that help businesses do just that. From back-end data tools to front-end products that create turn-key presentations in a matter of minutes, XP3 from Interactive Edge shaves time off of tedious time-intensive projects. Therefore, instead of focusing on time intensive tasks like creating Microsoft PowerPoint decks or marrying data together, companies can get back to the basics and focus on what truly is the most important aspect of the business - the Consumers.

The data, products and accounts depicted in this example are fictitious. Any resemblance to actual data, products or accounts is purely coincidental.