Data and Technology Innovation Improves Promotional Display Compliance

Feature & display compliance is a shared goal among both CPG manufacturers and retailers, yet it is common knowledge that compliance typically falls well below what either party would want to see. This is measured by the % of SKU-Day-Store data points where all SKUs in the promoted group are on display. So where’s the problem and how can it get fixed?

Where retailers share daily POS data, compliance gaps can be found by comparing each store’s promotional lift by SKU to benchmark stores. Maybe a store is late getting the promotional display up. Maybe only 6 of 8 SKUs in the promoted group are showing lift. Maybe stores run out of stock before the last day of the promotion. In all cases, StayinFront Retail Data Insight (RDI) can generate actionable alerts, quantify the value, and guide field teams to priority visits to fix the compliance gap. Daily POS or digital data is ideal, however even if POS data is shared weekly,  StayinFront can drive compliance up with the right insight analytics. Over time we develop cluster profiles to identify “opportunity” stores, where the same compliance gap tends to repeat across multiple promotions. Examples could include SKUs missing from a display, late display, early depletion of stock and, depending on the data we have to work with, several other factors. Cluster profiles also identify stores with consistently excellent retail execution.

StayinFront has helped clients achieve incremental organic growth, often in the range of +1.5% to +3%, by addressing actionable alerts and leveraging compliance cluster profiles in-field deployment planning. Field teams will also see measures of “lost sales due to early inventory depletion” from prior promotions right on their device, allowing them to remind store managers as they recommend displays & order quantities for upcoming events. Stores with consistently strong retail execution and promotion compliance offer opportunities to learn what they are doing right. Over time, look at feature & display compliance clusters by various attributes, such as territory, urban versus rural, length of time that a field rep has been assigned to the territory; and others, to learn and improve compliance. Lifting organic sales by leveraging available data benefits both retailers and CPG manufacturers.

This is all being done today and StayinFront RDI can help your organization do the same, and much more to achieve retail execution growth. We can help you find the most compelling next step using data & technology to empower your people, with proven ROI to fund and justify your roadmap to optimize your retail execution strategy. Click here to visit our website, or send me an e-mail with any questions you may have or to line up a no-obligation discussion: djones@stayinfront.com. Watch for future blogs on this theme of Innovation and Retail Optimization.

Written by Derrick Jones
Derrick has 20+ years of experience in senior roles in the CPG Industry, having worked with Mondelez International Inc., Kraft Foods, Cadbury International PLC, and HJ Heinz. Following progressive roles in Marketing, Sales, and Customer Service, he led teams responsible for inside sales support, including merchandising strategy and tools, sales planning, and retail execution systems and support.

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