Use of Data
Data is important for several reasons:
- Helps us to understand issues and opportunities - it can provide insight into questions and aid planning discussions
- Improved assessment and conclusions – analysing various data types can lead to improved insight and more robust decision making
- Provides fact based decision making – data supported decisions are sound and reasoned, making them understandable and therefore more readily accepted both internally and externally.
Our 2007 survey showed a positive increase in all forms of data usage versus 2006.
Data Usage
Do you use the following information during the category planning process?
- The percentage of companies that responded positively
Source: IGD
Data used for segmentation purposes, both customer and category, saw the greatest increase growing by 17 and 15 percentage points respectively. This is possibly due to these types of data now being more easily and widely available, coupled with a desire by category management practitioners to be more tailored and specific in meeting shopper needs.
In addition, the widening of the variety of products offered in-store has led to an increased pressure on space. This has resulted in traditional categories needing to make the range work harder from a diluted space. Hence, category practitioners need to ensure the product mix chosen, works best in terms of financial return whilst ensuring shopper needs are fully met. Both customer and category segmentation will aid this difficult balancing act.
A very high proportion of suppliers used all four data types, with only Customer Segmentation usage below 90%. This is most likely due to loyalty card information and customer relationship management systems not being available in a number of retailers. This is reflected in the retailers’ responses, where 50% of respondents did not have the information available. A high proportion of retailers also used the different data types, although not quite as large percentage as suppliers.
This is depicted in the following chart:
Data Types
Do you use the following information during the category planning process?
- The percentage of companies that responded positively
Source: IGD
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