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The Power of Data Sharing in CPG-Retailer Partnerships

Written by Retail Velocity | Feb 12, 2025 3:28:04 PM

In the dynamic retail industry, effective collaboration between CPGs and retailers is crucial for maintaining a competitive edge.

Prioritizing data sharing in their sales, marketing, and supply chain strategies allows consumer brands and retailers to obtain and transform valuable insights into actions that optimize the retail value chain for win-win, profitable relationships.

 

THE BENEFITS OF TRANSPARENT COLLABORATION

Using a single source of reliable and comprehensive demand and supply data that can be easily and frequently shared for joint business planning enables brands and retailers to leverage their data fully.

Improved Demand Forecasting

Accurate historical and daily POS data from retailers, along with sales trends and market insights, enhance visibility for predicting consumer demand and optimizing supply chains.

Faster Product Innovation Cycles

Shared insights into consumer preferences, needs, and feedback help companies identify market gaps and accelerate product development to meet consumer expectations.

Enhanced Customer Experience and Personalization

Create more personalized marketing campaigns, targeted advertisements, and interactive experiences that resonate with target audiences and lead to increased consumer engagement, sales, and revenue.

Supply Chain Optimization

Sharing daily inventory data at the SKU and store levels minimizes stockouts and overstocks while enabling more efficient logistics planning, reduced lead times, and cost savings throughout the supply chain.

More Effective Trade Promotions

Examining daily sales and inventory data at the SKU and store levels before and after promotions offers important insights for refining current trade promotions and enhancing future ones to maximize ROI.

Increased Consumer Loyalty

Understanding shopper purchase behavior can enhance loyalty programs and help develop tailored retention strategies, and also create brand advocates, leading to more sales and improved brand reputation.

Competitive Advantage

Analyzing and acting on shared granular data leads to smarter business decisions and allows for timely responses to market changes and shifts in consumer demand, helping brands and retailers to outperform competitors.

Optimized Category Management and Shelf Assortment

Data sharing enables CPGs and retailers to jointly make informed decisions that optimize product assortments, shelf placements, and category management strategies.

 

What Data Should Be Shared?

The road to deeper insights that drive sustained, profitable growth begins with identifying the right data to share. Focusing on key data types can unlock actionable business intelligence that leads to mutually beneficial outcomes.

Point-of-Sale Data

Gain a clear, comprehensive view of product performance and consumer demand with daily SKU-store sales data.

Inventory Data

Align replenishment strategies to meet real-time needs and ensure shelves are stocked with the right products at the right time.

Market Trends

Share timely insights into emerging products, product categories, and consumer preferences for proactive sales forecasting and demand planning.

Promotional Effectiveness

Analyze which promotions generate the highest engagement and sales and refine strategies to develop effective campaigns.

 

Keys to Effective Data Collaboration

Successful collaboration thrives on trust. Build it and watch your partnerships flourish.

  1. Transparency: Define shared goals and agree on success metrics and KPIs for optimal joint business planning.

  2. Data Security: Protect sensitive information from unauthorized access with advanced security protocols.

  3. Actionable Insights: Prioritize meaningful, accurate, timely, and high-quality data over quantity.

  4. Regular Communication: Schedule consistent touchpoints to stay aligned and adapt to changes in demand.

Ready to Build Win-Win Partnerships?

When conducted properly and backed by accurate data, data sharing can be incredibly powerful, significantly enhancing the usability and value of information. It plays a critical role in achieving success in both physical and digital marketplaces. In today’s retail environment, data sharing is essential for a company’s digital transformation, promoting innovation and driving profitable growth.

 

Contact us today to learn how Retail Velocity can help you automatically gather, prepare, and fully utilize the most precise retail data from all your retailer partners.

Download our Power of Dating Sharing infographic.