Collaboration between manufacturers and retailers can be a critical factor for the success of high-performing retailers – and yet less than half (47%) of high-performers and only 36% of average-performing retailers say they believe sharing data leads to better insights. These are study findings published in a white paper from titled “Winning at Consumer Centricity: 10 Tips for Retailers and Manufacturers” from analytics firm Precima.
Brian Ross, position paper author and general manager of Precima, says the consumer centricity strategy is based on retailers’ and manufacturers’ ability to:
- pinpoint their most important customers
- learn to understand the needs of those customers better than competitors
- realigning “every aspect of your value proposition” to meet those needs
An important point: high-performing manufacturers (and retailers) approach the strategy differently than their average-performing peers. Below are some findings reported in the paper:
Manufacturers that expect to increase emphasis on consumer centricity in the next year:
- 80% of high-performing manufacturers
- 65% of average-performing manufacturers
Retailers that consider consumer centricity a top-three factor to success:
- 87% of high-performing retailers
- 60% of average-performing retailers
Ross says the time is now for manufacturers to increase their consumer insight-sharing capabilities, particularly as retailers give these capabilities a higher priority.
More recommendations for manufacturers:
- Manufacturers should take a cross-functional, holistic approach to developing consumer insight.
- Manufacturers “are behind in understanding how to quantify the benefits of consumer-centricity” Ross writes, and success will come with “the right organizational change, tools, and resources.” OEMs just starting need to ID the steps that will bring the most benefit and ROI, then dedicate the right human resources to achieve it.
- Manufacturers need to work with retailers to figure out what measures should be addressed. The most important indicators are better sales, but other measures may include increased brand purchase and penetration.
- Manufacturer/retailer collaboration is key to making it happen. While retailers are the ones gathering the pint of sale data, manufacturers have their own consumer insight to offer. Data-sharing can allow the manufacturer and the retailer to better serve the customer and that will provide for more sales, more profits, and enhanced customer loyalty.