Progressive Grocer

2017 Category Management Handbook

Issue link: http://magazine.progressivegrocer.com/i/758946

Contents of this Issue

Navigation

Page 37 of 59

Progressive Grocer: Capturing information about shoppers is becoming more important than ever before for grocery retailers trying to get a leg up in today's increasingly competitive retail environment. What products and services does VideoMining offer to help retailers better understand their customers' behavior? Rajeev Sharma: VideoMining offers technology that automates the process of collecting data about shopper behavior inside of the store. We have a panel of stores, which allows us to capture information on how customers are navigating the store—how they're engaging and how they are making decisions in front of the shelf. That is especially important because it tells us whether shoppers have made up their minds about what to buy before they reach the shelf, or if they are deliberating and looking at things like labels and pricing. It lets us know if they ultimately end up buying a product during the shopping trip, or if they leave and perhaps purchase it at another location. It also lets us understand how different displays or product adjacencies influence impulse purchases. This is all done in a scalable, objective way as we capture the in-store behavior of millions of shoppers using multiple sensing technologies. The end result is that both CPG retailers and manufacturers now have unprecedented access to insights that enables them to make better decisions. PG: Why are these kinds of shopper analytics such an integral part of category management in the current retail landscape? RS: Everybody agrees that category management needs to be shopper centric, and not as product- and supply- chain centered as it has been in the past. Shoppers are changing and retailers have to respond appropriately. That's why these kinds of analytics are extraordinarily important today! As a retailer, you want to have the category management process aligned with what shoppers want. VideoMining helps retailers keep a pulse on shoppers' needs almost in real time, which allows both retailers and manufacturers to better cater to those needs. PG: What specific business processes can your VideoMining Analytics Platform help category managers perform more effectively and, in the process, boost category performance? RS: It begins with the assessment of the category. Many categories are not aligned with the way shoppers think, or the behavior of shoppers today. VideoMining can help retailers better understand the "Shopper Decision Tree" and hence which categories fall under shoppers' need states and improve things like how categories are co- located. What's even more important is using those metrics to define a better category scorecard that is focused on shoppability vs. sales. How easy is a category to navigate? What does the conversion data show? How satisfied are the category shoppers? Are they buying or walking away? Understanding those metrics can help decrease S P O N S O R E D C O N T E N T Speaking with... Rajeev Sharma Founder and CEO, VIDEOMINING walk-away rates. Metrics can also be used when making investments to improve a category—they can help ensure that any changes being made include input about shopper behavior, which allows retailers to more accurately predict what is working and what is not. PG: Do you have any real-life examples to share that illustrate how effective the platform can be? RS: We did an evaluation of all category resets in a given year for one major grocery retailer. Our metrics showed that the retailers could have improved 40 percent of all resets in one year, and could have realized almost 12 percent more in revenues. In fact, we found that some of the resets had lost sales! We were able to pinpoint that and improve the category reset process. In another example, a major supermarket retailer implemented a chain-wide sale across multiple categories and channels, with the intent of attracting customers who weren't coming to the store. Our metrics showed that the actual impact of that promotion on total traffic was zero, but that it did engage more shoppers leading to better "heat map" in the store. We were able to precisely evaluate the financial returns from the marketing campaign and show what worked and how the promotion impacted existing shoppers' behavior. Q A & Insights for winning in-store

Articles in this issue

Archives of this issue

view archives of Progressive Grocer - 2017 Category Management Handbook