Knowledge is power, and data is a precious commodity, but that doesn’t mean it should be kept secret. On the contrary, when the right data is shared between the right players, it leads to mutual success, as demonstrated by the strategy of Super-Pharm, the drugstore leader, for brand collaboration using ciValue.
Customer’s expectations for personalization cannot be met without proper collaboration between retailers and brands. In turn, this relationship also determines the bottom-line of the different players. This is exactly what led Super-Pharm to leverage data to increase supplier engagement and collaboration.
Using ciValue, Super-Pharm had abundant information about customer behavior including repeat purchase KPIs, churn alerts, new product penetration, turnover switching between products and brands, and more. Making these insights accessible to suppliers through a dedicated portal, was the first step in an overall customer-centric strategy.
This precious retail intelligence empowered Super-Pharm’s suppliers to assess the value of their products for retailers, and gives a clear view of their own positioning compared with their competitors’. This leads to better informed strategies and the ability to offer better promotions and assortment optimization.
This positive supplier-retailer relationship benefits the customers as well. In fact, it contributes directly to their satisfaction and loyalty. By sharing actionable data with suppliers, Super-Pharm was able to lead new customers to specific categories through data-driven use of brands, and offer a better assortment process and new product potential assessments.
Changing the conversation: from “why fund a campaign?” to “how much?”
When Super-Pharm shared its data with them, brands gained insight into customer purchase history, preferences, and loyalty. Brands were then able to optimize campaigns, new product launches, and the overall performance of their products in various categories.
The brands’ success turned into the Super-Pharm’s success when the suppliers’ better results and increased engagement led to more joint marketing activities. In other words, data sharing and collaboration increased supplier funding, changing the conversation to focus on the joint benefits rather than on the rationalization of such activities.
Putting AI in retail
Insight sharing is a common best practice in the retail industry. Boosted by the granularity of ciValue’s solution, brands and retailers can sit on the same side of the table, and let their customers’ data speak for itself. Leveraging machine learning to create a common view of the customers’ retail DNA, and using a dedicated portal for brands to consume insights and go straight to action is what enables ciValue’s users to make an impact, including:
- By leveraging previously inaccessible insights on loyalty data, one of the world’s largest CPG supplier has been able to tailor promotions on new products, bundle them with existing ones. This led to surpassing income expectations by over 20%.
- Gaining access to data, empowered a multinational consumer goods company to align its various teams, develop campaigns, monitor them, and take direction leading to business growth.
- By investigating the root cause of sub-performance for a specific product, the retailer managed to identify that 93% of buyers were new to the category, thus providing data-backed arguments to support continued investment and create a win-win for all entities: supplier, retailer and end customer.
The Bottom Line
Being customer-centric takes more than discussion. It requires action. By creating data alignment with its suppliers using the ciValue solution, Super-Pharm and its suppliers were relying on one source of truth. This leveraged retailer-supplier collaborations in joint marketing activities, cost efficiency, and increased supplier funding.
To learn more about how our solution can accelerate your insights sharing initiatives and make a strong impact on your bottom line feel free to consult the full Super-Pharm use case.