Marketing & Information Junkies

If it's one thing corporations can't get enough of, it's data.

As if having reams and reams of stats will help them succeed in selling mediocre products, many companies pore over surveys designed to help them predict consumer behavior. There certainly is a lot of information out there, including a survey by DemandTec, Inc., a leading provider of on-demand optimization solutions for retailers and consumer products manufacturers. Working with Precima, Inc., an advanced analytics firm that translates retail customer data into critical insights, the two companies have published a survey measuring how retailers and consumer products manufacturers use consumer-centric data and analysis to drive their businesses.

Entitled "Being Consumer-Centric: A Retailer and Manufacturer Update," the survey looks at the way companies can use shopper data to drive decision-making. Among the key findings are:

• Most retailers (75%) and consumer products manufacturers (58%) rank consumer centricity as a top 3 success factor

• 80% of retailers and 67% of manufacturers expect an increased focus on consumer centricity in 2009

• Manufacturers need to work on leveraging consumer insights across the organization with only 43% indicating their ability is better than satisfactory, compared to 64% of retailers

• The limited availability of team resources is the largest impediment to consumer-centric success for both retailers (37%) and manufacturers (43%)

• Lack of support and executive sponsorship is no longer a significant barrier for retailers (16%) with more than 75% retailers appointing a senior consumer-centricity role

Additional key insights for Retailers and Manufacturers:

• Manufacturer high performers clearly use consumer insights more frequently for demand planning/forecasting (80%) compared to the norm (49%)

• Retailer high performers use consumer insights more frequently in sales/merchandising (80%) compared to the norm (60%)

• High performer retailers are motivated to share data to strengthen trading partner relationships (53%) compared to the norm (24%)

Survey Methodology:

The sample consisted of 120 respondents, including 55 retailers and 65 consumer products manufacturers. Respondent roles were director level and above. The survey was conducted through online and telephone interviews. Top performers in each group were defined as those having annual same store sales growth of at least 7% (for retailers) and those within the top ten in the survey based on percent annual revenue growth (for consumer products and pharmaceuticals). Outliers were discarded to maintain data integrity. Data is accurate within 90% confidence level and 10% confidence interval.

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