The prevailing and most common business model in this industry is B2B2C. So while those of us in the tech industry can focus on just one user/customer, this industry has two separate customers.
The Customer: When referring to customers, industry professionals are normally talking about supermarkets, wholesalers, retailers, convenience stores and distributors.
The Consumer: The end user who ‘consumes’ the brand/product.
Both customer and consumer level data are integral to this industry. Understanding how consumers make purchasing decisions (at scale) can be challenging due to the influence of so many different factors on consumers. The results then need to be converted into what it means at a B2B level. This requires an understanding of how people shop and where.
The data needs to be collected and reviewed for sales insights as often as the ordering frequency, so sales people can use this data to discuss orders, promotions, listings and placement with buyers/decision makers. Then, the decision makers at retailers, supermarkets, wholesalers, distributors, convenience stores etc (you get where I am going with this!) need to be convinced that you have arrived at the right conclusion.
This is one of the reasons why direct to consumer brands have been so successful over the past few years with internet becoming the ‘new’ channel. You can now market (instagram, direct emails campaigns, facebook, twitter etc) and sell your brand on the same channel, and increasingly through the same medium (e.g. instagram). In fact, with Millennials and Gen Z now forming a significant percentage of consumers, with a significant internet footprint, companies should be using this data to understand and gauge consumer demand.
With both these generations so used to instant gratification, we do not rule out the possibility that physical retail will co-exist with e-commerce. At the end of 2020, e-commerce was 21% of all sales, up 44% from 2019 and is still expected to grow.
With the B2B2C model surviving into the foreseeable future, companies will need to understand the consumers who buy their brands and what drives them to be able to sell effectively into the aggregators (supermarkets, convenience stores, wholesalers, distributors, online stores etc). Especially so, as social media, climate change (heatwave one day, storm another, cold waves in places where winters are mild etc) and widespread information availability is influencing consumer demand and purchase intent in unexpected ways.
If you’d like to understand how to better use external data points to sell more effectively, email me on email@example.com.