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The Role of Big Data in the CPG-Retailer Relationship

The role of big data in the retail sector is increasingly overriding for decision-making. Food retailers that use big data are more likely to boost their profits when they make smart investments in consumer analytics.

Leveraging big data efficiently allows retailers to track and analyze customer’s purchasing behaviors, in addition to measuring promotional campaigns results in real-time, achieving best-optimized results.

Furthermore, sharing customer data is the key driver to improve the relationship between suppliers and food retailers, they both understand customer behavior and partner to create marketing strategies to retain their customers.

Collaboration with different goals 

The relationship between retailers and suppliers is not always easy, while retailers negotiate for lower lower costs, suppliers ask for higher profits and a bigger market share.

Retailers focus on category development, suppliers focus on brand awareness and market share, as well as store traffic, basket size, and frequency. Suppliers’ goals are more about purchases, baskets with brand, brand loyalty, and brand equity. Both retailers and suppliers need to find a middle ground to collaborate even with different goals, because in the end, they both are looking for an increasing sales.

One of the retailer’s biggest assets is owning the customer data as well as technological tools that give a complete overview of customer insights, which suppliers don’t usually have access to. A supermarket, for example, has insights on customer behavior and purchases, which could be one of its greatest assets when negotiating with suppliers.

On the other hand, CPG suppliers have strong knowledge about brands and consumers from qualitative research, and therefore understand why customers prefer one brand or certain categories over others. In addition to this, suppliers have the final say about their offers and promotions being held at supermarkets, becoming this its major advantage when negotiating with retailers.

Sharing customer data 

Customer Data Platforms provide an efficient single solution to both suppliers and retailers. Supermarkets who work with CDPs are able to gather customer data from all touchpoints and get a more comprehensive understanding of consumer behavior, taking into account purchase data, lifestyle, preferences, and affinities. But what happens when all this customer data is shared with suppliers? 

Results turn out to be favorable for both retailers and suppliers

When this data is shared between both retailers and suppliers, it becomes easier to deliver personalized promotions and discounts that eventually lead to higher profits.

In the end, both parties share benefits and results and each one has an important role to play when it comes to maximizing ROI.

The role of big data in the retail sector is increasingly overriding for decision-making. Food retailers that use big data are more likely to boost their profits when they make smart investments in consumer analytics.

Leveraging big data efficiently allows retailers to track and analyze customer’s purchasing behaviors, in addition to measuring promotional campaigns results in real-time, achieving best-optimized results.

Furthermore, sharing customer data is the key driver to improve the relationship between suppliers and food retailers, they both understand customer behavior and partner to create marketing strategies to retain their customers.

Collaboration with different goals 

The relationship between retailers and suppliers is not always easy, while retailers negotiate for lower lower costs, suppliers ask for higher profits and a bigger market share.

Retailers focus on category development, suppliers focus on brand awareness and market share, as well as store traffic, basket size, and frequency. Suppliers’ goals are more about purchases, baskets with brand, brand loyalty, and brand equity. Both retailers and suppliers need to find a middle ground to collaborate even with different goals, because in the end, they both are looking for an increasing sales.

One of the retailer’s biggest assets is owning the customer data as well as technological tools that give a complete overview of customer insights, which suppliers don’t usually have access to. A supermarket, for example, has insights on customer behavior and purchases, which could be one of its greatest assets when negotiating with suppliers.

On the other hand, CPG suppliers have strong knowledge about brands and consumers from qualitative research, and therefore understand why customers prefer one brand or certain categories over others. In addition to this, suppliers have the final say about their offers and promotions being held at supermarkets, becoming this its major advantage when negotiating with retailers.

Sharing customer data 

Customer Data Platforms provide an efficient single solution to both suppliers and retailers. Supermarkets who work with CDPs are able to gather customer data from all touchpoints and get a more comprehensive understanding of consumer behavior, taking into account purchase data, lifestyle, preferences, and affinities. But what happens when all this customer data is shared with suppliers? 

Results turn out to be favorable for both retailers and suppliers

When this data is shared between both retailers and suppliers, it becomes easier to deliver personalized promotions and discounts that eventually lead to higher profits.

In the end, both parties share benefits and results and each one has an important role to play when it comes to maximizing ROI.

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