Industry experts reveal how to fix destructive retailer and supplier behaviors that undermine customer-centricity
The retail landscape is undergoing a seismic shift as competition intensifies amid elevated shopper expectations. This leaves retailers and consumer packaged goods (CPG) manufacturers at a critical juncture with a choice to make. They can prosper in an increasingly dynamic environment with fresh thinking about the goal of collaboration, new ways of working, and the use of advanced technology, or maintain the status quo and risk relationships becoming more adversarial to the detriment of shopper satisfaction and sales.
To be sure, collaboration is not a new topic in retail. It has been analyzed and discussed extensively for decades at industry conferences and in journal articles. However, major changes are occurring today that affect how retailers and suppliers collaborate, why it is essential they do so, and how that impacts data monetization.
These topics and others were the focus of a recent webinar with Progressive Grocer in which SymphonyAI executives Sonia Parekh and Lori Mills shared their views on what’s next for collaboration and data monetization and how advances in technology and the philosophy of “connected retail” create a new ultimate version of the truth.
Collaboration is a Shared Commitment
Successful collaboration begins with a shared commitment to the customer, which is easy to say but harder to achieve. By aligning business objectives around customer-centric strategies, retailers and CPGs can enrich customer experiences, strengthen loyalty, and drive significant business growth. This focus ensures companies remain agile and responsive to rapid changes in market needs, ultimately positioning them to secure a competitive edge.
Despite the obvious benefits, effective collaboration often encounters hurdles, such as fragmented insights and operational inefficiencies. Both retailers and manufacturers can find themselves drowning in disparate data sources, making it challenging to create cohesive strategies. The solution lies in embracing technology that consolidates these data streams into a unified platform. This integration allows for real-time access to actionable insights, facilitating quick, informed decision-making. Whether in spontaneous discussions or planned meetings, having this single version of the truth empowers both parties to make swift adjustments and seize opportunities efficiently. Moreover, today’s technology platforms must go beyond traditional business intelligence. They should enable retailers and CPGs to have on-the-fly access to data, fostering a more dynamic and continuous process of collaboration and decision-making.
One illustrative concept is connected retail, which involves bringing together data across promotions, pricing, supply chain , and assortment strategies to ensure decisions are well-informed and cohesive. This holistic view prevents the “squeeze the balloon” effect, where actions in one area inadvertently cause issues in another , thus optimizing overall business performance.
Cultivating Growth with the Flywheel Effect
A standout theme from the webinar discussion was the “flywheel” effect, which describes the self-sustaining momentum that collaboration can generate. By establishing dedicated teams at both the retailer and manufacturer, companies can extract actionable insights and instill trust in data-driven strategies. As decision-makers become more comfortable using data, they begin to see tangible benefits, such as improved customer-centric practices and business growth. This growing trust and familiarity contribute to “activated value,” a critical measure reflecting how well data-driven decisions translate into business success.
As retailers climb the maturity curve of collaboration, they transition from basic data reporting and ad-hoc projects to integrating insights into their DNA, influencing strategic decisions across the four Ps: product, price, place, and promotion. At full maturity, data-fueled collaboration supports comprehensive marketing strategies, maximizing ROI for both retailers and CPGs. This evolution is exemplified by the transition from simple data sharing to fully realizing the potential of insights to drive customer engagement and category growth.
Unlocking the Potential of Data Monetization
To maximize the power of the data, the focus must shift from merely possessing data to deeply integrating it into business processes. Effective data monetization involves using insights to drive key business outcomes rather than viewing data as a stand-alone asset. This requires adopting a perspective that views data as a catalyst for growth and efficiency. By embedding data insights into everyday decision-making, companies can unlock substantial business value, ensuring meaningful ROI.
An intriguing study highlighted during the conversation demonstrated that partners who embraced retailer data grew 4.4% faster than those who didn’t, underscoring the tangible benefits of data-driven decisions. Yet, the path to success isn’t without its challenges. Programs can falter if they don’t scale beyond initial excitement or if data is not effectively integrated into organizational processes. True success requires buy-in from all stakeholders, particularly those on the operational front lines, to ensure collaboration is deeply rooted in business culture.
Predictive and generative AI technologies are further revolutionizing the use of data . These tools provide rapid insights and support proactive decision-making, enhancing business speed and effectiveness in responding to market changes. When used in a “copilot,” generative AI simplifies analysis, makes it easier for workers of varied skill levels to uncover insights and streamlines the journey from insight to action. Additionally, AI technologies facilitate real-time responses and guide strategic planning by predicting future trends and optimizing promotional strategies.
The Future of Collaborative Retail
The ongoing evolution of retail collaboration is promising, with shared data and insights paving the way for enhanced customer-centric strategies. For retailers embarking on a data monetization journey, identifying the right starting point is crucial. Whether through enhancing analytic capabilities, addressing supply chain challenges, or establishing structured collaboration frameworks, the path to success involves structured programs that foster ongoing partnerships with CPGs. This approach allows for the development of unified strategies that align with company goals, ensuring sustainable growth and agility.
As retailers and CPGs harness technology and foster stronger partnerships, they unlock unprecedented value, maintain a competitive edge, and enhance their ability to serve consumers in a rapidly changing marketplace. By placing the customer at the center of these strategies and using advanced software products, the future of connected retail collaboration is not just bright but transformative, promising greater efficiency, profitability, and customer satisfaction.
