, created by Florian Baur
Collaboration is a win-win approach
Mutually beneficial goals drive retailer/supplier co-operation. As consumers grow increasingly challenging and demanding, collaboration between retailer and supplier is becoming more pivotal to success. Working together, businesses throughout the retail value chain should consider developing a unified strategy to meet customer needs and product preferences and, at the same time, increase revenue.
On-going co-operation between all parties undeniably offers mutual benefits including better efficiency, cost cutting and exceeding customer expectations. Complementary skills and knowledge support category growth; a joint approach also has a positive impact on promotional planning and merchandising;
and a collaborative relationship is crucial in terms of shopper satisfaction.
A profitable relationship
A project involving a global consumer brand and a leading French retailer (both emnos clients) is an excellent example of a profitable relationship. In this case, insight sharing and collaboration proved so effective, the manufacturer used analysis of all products in a specific product category as background for its 2015 recommendations and proposals for not only the partner retailer, but also many additional outlets around the country.
The brand objective was to acquire a deeper knowledge of its consumers through shopping behaviour in the relevant categories of its retail partner. emnos was initially asked to focus on one of the manufacturer’s leading brands and investigate the whole segment.
Factual data from transactions, shoppers and products was analysed, aggregated and used to develop customer segmentation. Working with both companies, emnos was then able to define the optimum product assortment by identifying shopper needs and demands in the category. These precise insights were used by both supplier and retailer as the basis for changes and innovations to the range.
This first project was so successful, the emnos team went on to undertake a similar segmentation and assortment analysis across a second category.
Driving powerful new insights
Sharing customer insights is integral to the ideal 360 degree view of business operations. The abundance of customer information and a data-driven approach to decision making support the development of a productive relationship between retailers and suppliers. Working together from the same shopping behaviour data analysis drives powerful new insights and timely joint decisions.
At times, it is difficult for retailers to act on the calls to action generated by customer insights and integrating with suppliers is a significant facilitator. Constant communication and two way ideas plus the use of web-based software solutions keep the process rolling and provide the retailer with an effective basis for improving communications, pricing, promotions, assortment and shelf layout.
A valuable intermediary
To fully tap the potential of insight sharing, any conflicting interests between retailer and supplier need to be set aside before they can share information and hence align strategies. Bringing in a specialist third party, such as emnos, helps get the process underway and push it forward more quickly by providing the expertise and sophisticated solutions needed to generate in depth insights from raw data. We often also act as a valuable intermediary, ensuring everyone is working towards the same end.