The industry is transforming before our eyes. With new technology disruptors and today’s dynamic shopper, consumer goods organizations are finding it difficult to grow or even retain their category market share. In both 2013 and 2014, the growth of e-commerce drastically outpaced brick-and-mortar. According to recent projections from eMarketer, this trend is only expected to continue.
After leaving this years FMI Midwinter conference there was some good news for sales at brick and mortar. Through panel discussions and social media interaction there is strong evidence that consumers still want the custom in-store experience in tandem with an online media rich shopping experience. Today’s shoppers are searching for retailers and brands that can deliver a complete omni-channel experience and those that can deliver can expect their market share to grow. But there is a problem with brick and mortar shopping experience right now. Third party industry data suggests that around 40% of promotions are actually losing money and three-of-five promotions are not being executed correctly by retailers. This is a very big issue across the industry as shoppers are having difficulty finding brands and grocers that they can routinely trust.
Retail execution and sales forecasting have only grown in complexity over the years. However, in-store execution technology and customer relationship management capabilities have dramatically improved regarding features and costs. Brands can use data-integrated field solutions to track retail execution KPIs and monitor trade spend to focus their operations around retail activity optimization and review accurate sales reports with store management. With shoppers in search of the perfect omni-channel experience now is the time for retailers and manufacturers to implement SFA applications that improve their retail execution activities and ensure what is being planned in the boardrooms is being executed correctly at the shelf.
Next week we’ll post our Retail Execution Road Map to Success for 2016 outlining the five steps needed to improve promotion compliance, adjust to retail conditions, and drive value at the shelf.
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