Using Data to Drive Retail Decisions

Because with a bad forecast everything else will fail... This infographic contains 7 steps to create and improve a forecast: ✅ Step 1 - Start with Historical Data Collection & Cleaning 👉 gather and clean past sales data (ideally 3 years) 👉 remove outliers, fill in gaps, and ensure data accuracy before analysis ✅ Step 2 - Segment Your Demand 👉 break down your demand into segments to create more granular forecasts 👉 examples: volume, value, product categories, customer types, regions ✅ Step 3 - Generate a Baseline Statistical Forecast 👉 as starting point, generate a baseline forecast using statistical methods like time series analysis ✅ Step 4 - Apply Seasonality and Trend Adjustments 👉 use historical seasonal patterns and emerging trends to fine-tune your forecast for upcoming periods ✅ Step 5 - Collaborate & Fine-tune in S&OP Meetings 👉 collaborate with sales, marketing, finance, and operations to align on one consensus forecast ✅ Step 6 - Adjust for Market Intelligence 👉 incorporate insights from sales teams, marketing campaigns, external research, and product launches to adjust your baseline forecast ✅ Step 7 - Incorporate Forecasts into S&OE (Sales & Operations Execution) 👉 drive actionability in the short term based on this aligned forecast, helping the team respond quickly to deviations 💥 Bonus Step: Build a Continuous Feedback Loop 👉 track forecast accuracy by comparing actual sales to forecasted figures, and regularly update your model based on this feedback Any other steps to consider? #supplychain #salesandoperationsplanning #integratedbusinessplanning #procurement

Understanding your customers’ behaviors and responding accordingly is key to sustained business success. In yesterday’s post, I introduced the Recency-Frequency Matrix, a powerful tool for customer segmentation that helps businesses identify and prioritize their most valuable customers. Today, I want to take it a step further by showcasing how this analysis can inform targeted marketing strategies to drive engagement and growth. Strategic Actions Based on the Recency-Frequency Matrix: Champions: These are your top-tier customers who purchase frequently and recently. To maintain their loyalty, consider offering early access to new products or services, implementing a robust loyalty rewards program, and sending highly personalized communications. Loyal Customers: Customers in this segment are consistent buyers but with slightly less frequency. Encourage more frequent purchases through special incentives, reminders of your product or service benefits, and targeted re-engagement campaigns. Needs Attention: These customers have shown steady engagement but may need a prompt to stay active. Reactivation campaigns with tailored offers, requesting feedback, and exclusive deals can help prevent potential churn. Churn Risk: These customers are at risk of disengagement. Win them back with significant incentives, reminders of positive past experiences, and personalized offers designed to reignite their interest in your brand. Already Churned: For customers who have not engaged for a while, occasional check-ins or updates, targeted ads for reintroduction, and a focus on acquiring new customers might be the most efficient use of resources. Leveraging a Recency-Frequency Matrix not only provides a clear view of where your customers stand but also empowers you to implement highly tailored strategies that maximize both engagement and ROI. Art+Science Analytics Institute | University of Notre Dame | University of Notre Dame - Mendoza College of Business | University of Illinois Urbana-Champaign | University of Chicago | D'Amore-McKim School of Business at Northeastern University | ELVTR | Grow with Google - Data Analytics #Analytics #DataStorytelling

Our most underestimated pricing tool? AI. It’s easy to assume that pricing is all about intuition or guesswork, but AI is transforming how businesses approach price optimization. However, AI isn’t a one-size-fits-all solution—it’s a tool that, when used right, can drive smarter, data-backed decisions. Here’s why AI matters for your pricing strategy: → Dynamic Adjustments AI helps businesses adjust pricing in real-time, responding to shifts in demand, market conditions, and competitor activity. It ensures prices are always competitive and aligned with the market. → Data-Driven Insights By analyzing large sets of data—like past sales, customer behavior, and trends—AI helps identify the best price points to maximize profit without alienating customers. → Personalized Pricing AI enables businesses to tailor prices to individual customer segments, increasing both loyalty and conversion rates while optimizing profit margins. → Simulated Scenarios AI allows companies to simulate different pricing strategies and predict their outcomes. This way, businesses can test new approaches without taking unnecessary risks. So, how can you leverage AI in pricing? → Start Small Begin by integrating AI tools that align with your existing pricing strategies, and gradually scale as you learn. → Combine AI with Human Insight AI is a powerful tool, but it needs human judgment to adapt to the nuances of the market and customer sentiment. → Embrace Dynamic Pricing Implement AI-powered dynamic pricing models that adjust in real-time based on factors like demand and competitor actions. AI isn’t just a trend—it’s a game changer for smarter pricing strategies. It’s time to stop guessing and start optimizing. How are you using AI to optimize your pricing strategy? Let’s talk!

When I interviewed Stephan Waldeis, VP of eCommerce Europe at Husqvarna Group, he said this about tracking real-time data and retailer partnerships. “We track customer behavior, we track inventory levels at our partners, we track sales performance — and of course, we possibly... we track all of that in real time. Imagine, our robots — at least the ones from the last 10+ years — are all connected. So, we have a lot of insights in which gardens they are driving, when they are operating, etc. And that is data that we are leveraging, but also data that we are sharing with our channel partners. That’s great even for the channel partners who are not really interested in operating an eCom site. We provide them with a lot of insights… what kind of products are interesting in your area, because we know exactly from visits on our site, which products in a particular region are more relevant — in Amsterdam versus in Berlin versus in Munich.” 𝗛𝗼𝘄 𝘀𝗵𝗼𝘂𝗹𝗱 𝘄𝗲 𝘁𝗿𝗮𝗻𝘀𝗹𝗮𝘁𝗲 𝘁𝗵𝗶𝘀 𝗳𝗼𝗿 𝗖𝗣𝗚 𝗯𝗿𝗮𝗻𝗱𝘀 𝗮𝗿𝗼𝘂𝗻𝗱 𝘁𝗵𝗲 𝘄𝗼𝗿𝗹𝗱 𝘁𝗼 𝗳𝘂𝗲𝗹 𝗴𝗿𝗼𝘄𝘁𝗵? 1️⃣ Activate Real-Time Retailer Collaboration Track and share real-time consumer behavior, inventory, and sales data with retail partners — even those with limited digital capabilities — to strengthen joint decision-making, optimize local assortments, and drive smarter sell-through at the shelf. 2️⃣ Localize Product Strategies with Regional Demand Signals Use geo-specific browsing and purchase data to tailor product recommendations, promotions, and stock levels at the city or neighborhood level — what sells in Amsterdam might flop in Berlin if you don’t read the digital shelf signals correctly. 3️⃣ Turn Connected Product Data into a Competitive Advantage Leverage connected device insights (where available) not only for product innovation but as a marketing and retail sales weapon, identifying usage patterns, seasonal trends, and regional preferences that can feed back into supply chain, DTC, and retail media strategies. 𝗧𝗼 𝗮𝗰𝗰𝗲𝘀𝘀 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗼𝗹𝗹𝗼𝘄 ecommert® 𝗮𝗻𝗱 𝗷𝗼𝗶𝗻 𝟭𝟰,𝟬𝟬𝟬+ 𝗖𝗣𝗚, 𝗿𝗲𝘁𝗮𝗶𝗹, 𝗮𝗻𝗱 𝗠𝗮𝗿𝗧𝗲𝗰𝗵 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀 𝘄𝗵𝗼 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲𝗱 𝘁𝗼 𝗲𝗰𝗼𝗺𝗺𝗲𝗿𝘁® : 𝗖𝗣𝗚 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗚𝗿𝗼𝘄𝘁𝗵 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿. About ecommert We partner with CPG businesses and leading technology companies of all sizes to accelerate growth through AI-driven digital commerce solutions. Our expertise spans e-channel strategy, retail media optimization, and digital shelf analytics, ensuring more intelligent and efficient operations across B2C, eB2B, and DTC channels. #ecommerce #dataanalytics #CPG #FMCG #data Milwaukee Tool Bosch Makita U.S.A., Inc. STIHL Mondelēz International Nestlé Mars Ferrero General Mills L'Oréal Henkel Beiersdorf Colgate-Palmolive The Coca-Cola Company Unilever L'Oréal Coty Kao Corporation adidas Nike New Balance PUMA Group the LEGO Group Sony Panasonic North America Bose Corporation

I am just a boy, standing in front a LinkedIn community, asking for it to love Retail Media Creative (and what it brings to your business)! Sponsored Products and Retail Search continue to dominate the Retail Media landscape with nearly 70% of total spend and many large CPGs are still investing almost 90% in Retail Search related tactics. The challenge is, all you are essentially doing is (over) paying for better shelf placement in a society that is obsessed with discovery/interest based platforms and technology advancements making it easier to buy (and measure) than ever. Retail Media spends have surged past $50B this year and there is still a shocking void in the amount of Retail Media Creative focus across the industry. My biggest question for the group, what needs to be true for brands to start using Retail Media as the creative testing engine for the ENTIRE business? We spend insane amounts of money for creative research gathering subjective opinions of people sitting in a room. I propose we use the power of retail media, quick feedback loops tied to ACTUAL SALES to make more informed creative decisions. To make it real for the group, here is my scenario: You are launching a new product and are debating between which claims or product benefits are going to be most effective at driving sales. Instead of working with an Ipsos, why not work with your agency (like VaynerMedia 😉) and RMN partners? I recommend running multiple versions of creative featuring different product benefits, hooks, etc. and then look to see which version drove the most sales in your reporting. Take those learnings and use that to inform your national media briefs, creator affiliate briefs, etc. so you are no longer wasting spend on creative and ideas you THINK work for your business. Our industry is getting more accountable than ever before. Its time we harness the power of Retail Media to develop winning creative. Worst case, our $50B+ in Retail Media spend will not be wasted with the world's least effective creative. Best case, you are developing accountable and sales based insight tools for your broader business.

Imagine Barry's frustration as 40% of his e-commerce margins vanished into shipping costs. 📦💸 His business was growing, but profitability felt like an endless battle against logistics expenses. Ever faced a similar challenge? Barry's situation was all too common in our industry. Expensive carriers for every shipment, oversized packaging driving up costs, and zero visibility into supply chain operations were creating the perfect storm. Here's how we streamlined operations at our state-of-the-art facilities and achieved a remarkable 60% cost reduction: 🚀 Optimized carrier selection: We analyzed shipping patterns and matched each order type with the most cost-effective solution, reducing average shipping costs by 35% 📦 Right-sized packaging solutions: Implemented automated packaging optimization that eliminated dimensional weight charges and cut material costs by another 15% 🏢 Strategic 3PL partnerships: Connected Barry with facilities in optimal locations, cutting warehousing costs by 25% while improving delivery times 📊 Enhanced real-time visibility: Integrated inventory management systems that prevented costly stock discrepancies and boosted customer satisfaction scores by 40% The results went far beyond cost savings. Barry's delivery times improved from 5-7 days to 2-3 days for 97% of his customers. Through white label fulfillment solutions, his brand maintained its identity while customer complaints dropped by 70%. Most importantly? Barry shifted from wrestling with daily logistics fires to focusing on business growth and scaling his operations. The key insight: Complex supply chain challenges require strategic, data-driven approaches rather than quick fixes. What logistics challenge is currently holding your business back? 🤔 #EcommerceSolutions #LogisticsExcellence

Is traditional category management struggling to keep up with today’s retail complexities? 🛒 The rise of the “endless aisle” online. 🚗 Shoppers bouncing between in-store, delivery, and BOPIS. 🏬 Retailers gaining the upper hand with superior data capabilities. 🛍️ Brands should focus on bridging online and in-store strategies, using data like clickstreams, shopper behavior, and out-of-stocks to create seamless omnichannel experiences. “Ultimately, it’s about: “How do I make an effective decision of what portfolio to optimize not just for the retail margin, but also to defend against all of the internal cost pressures that I have? All of that you can answer through data, which you just need to have set up in your organization properly to execute.” Imteaz Ahamed 1️⃣ Crawl: Build the basics. Focus on digital shelf optimization, product content, and metrics like Brand Share Index. Without these foundations, categories underperform online. 2️⃣ Walk: Align online and offline. Work with retailers on taxonomies, shared KPIs, and growth plans. Prioritize full-basket models (e.g., grocery orders) over single-item “spearfishing.” 🎯 3️⃣ Run: Drive innovation. Use AI 🤖 for personalization, testing, and demand forecasting. Shoppers love mission-based solutions like “holiday party kits” or event bundles. 🎉 How Brands & Retailers Can Build Growth Together 🤝 Collaborate on insights: Share data like clickstream behavior and category performance to uncover growth opportunities. 📊 Test and learn: Partner on rapid experimentation (e.g., optimizing taxonomies or testing product visibility). 🌮 Focus on solutions: Build mission-based shopping experiences (like “taco night” kits) that span multiple categories. 🛍️ Personalize shopper journeys: Use AI to create tailored digital shelves and seamless omnichannel experiences. “The teams were beginning to say if an item wasn’t accepted in-store then it should go on Amazon, and we took a step back and said we need to develop a new product with the lens of what the product looks like for the retailer. How we define that is through beginning to develop ecommerce category management.” Ash McMullen Are you crawling, walking, or running? 🚀

You’re running a thriving retail business, your sales are soaring, and customer demand is through the roof. But behind the scenes, there’s a ticking time bomb—your inventory management. Stockouts, overstock, and delayed orders are quietly eroding your profits and customer satisfaction. Here’s the hard truth: In today’s fast-paced retail environment, outdated inventory management is a silent killer. It’s not just about knowing what’s in your warehouse; it’s about having real-time insights that empower you to make smarter decisions on the fly. Why does real-time inventory matter? Prevent Stockouts and Overstocks Real-time data gives you a clear view of your inventory levels at any given moment. No more guessing games or reactive reordering. You can see exactly what’s selling fast and what’s gathering dust, allowing you to adjust your orders accordingly and keep your shelves perfectly stocked. Boost Customer Satisfaction Imagine a customer walks into your store or clicks on your website to buy a product, only to find it’s out of stock. Frustrating, right? Real-time inventory insights ensure that your customers never face this issue. By knowing what’s available, you can promise—and deliver—on your customer experience every time. Optimize Your Supply Chain With real-time insights, you can spot inefficiencies and bottlenecks in your supply chain as they happen. This means you can quickly adapt, reroute shipments, or reorder products to keep everything running smoothly. It’s like having a 24/7 pulse on your entire operation. Increase Profit Margins Real-time inventory management isn’t just about avoiding losses; it’s about maximizing profits. By reducing excess inventory, cutting down on storage costs, and improving turnover rates, you’ll see a direct impact on your bottom line. Adapt to Market Changes Instantly The retail world moves fast. Trends change overnight, and customer preferences are fickle. Real-time insights let you react immediately—adjusting your inventory to meet new demands without missing a beat. It’s the difference between leading the market and playing catch-up. Retailers who embrace real-time inventory insights are not just staying afloat—they’re thriving. In an era where data is king, having the ability to monitor, analyze, and act on inventory data in real-time is no longer a luxury—it’s a necessity. If you’re ready to elevate your retail game, it’s time to ditch the outdated systems and embrace the power of real-time insights. The future of retail isn’t about guessing what’s next; it’s about knowing it. Let’s keep building. Follow Ekyam.ai #realtimeinsights #supplychain #b2b #Inventorymanagement

The increasing complexity and vulnerabilities of supply chains have been a growing concern for many businesses, with intricate products, variable components and sources, new materials and technologies. Customers now expect expanded product availability, more buying options, and faster delivery. These complexities strain supply chain performance, and customers have shared their need to increase operational resilience, enable real-time tracking, mitigate disruptions, and optimize networks to meet expectations. AWS Supply Chain addresses these pressing needs with a data-driven approach that enables advanced functionality and increases effective collaboration. Key capabilities include a unified data lake that aggregates disparate information, demand forecasting and inventory optimization with machine learning, supply planning to minimize costs and respond quickly to changes, multi-tier visibility for detecting risks and collaborating across the supply chain, and sustainability tracking for streamlined ESG data collection. By connecting data and powering strategic insights, AWS Supply Chain boosts efficiency, resilience, and sustainability. Supply chain leaders will have enhanced visibility, improved risk mitigation strategies, and optimized inventory. Supply chain resilience is no longer just an option, it's an imperative for every industry and organization. Let's discuss how AWS Supply Chain can help you handle complexity and supercharge your supply chain operations! #AWS #AWSSupplyChain #SupplyChainResilience #DataDrivenApproach #Collaboration #Efficiency #Sustainability #supplychain #esg #ml #ai #genai #amazonq

Top-line growth through expansion areas is often the go-to but prioritising assortment optimisation can yield far greater benefits for long-term success. Attaining new top-line growth may seem simple—launching new categories or stores can quickly boost year-over-year revenue. However, without focusing on your business's current inventory health, such actions can lead to long-term complications and a less sustainable business. True merchandisers 🤓 find great satisfaction in revitalising and optimising struggling categories, locking in reliable and sustainable growth in a dynamic retail landscape. To safeguard profits, drive revenue, and enhance sell-through rates, all while maximising your product's potential, consider the following strategies: 💡 Leverage Inventory Health Check Metrics Gain a deep understanding and competitive edge when you have clarity on both driving factors and hindrances to business performance. Favourites include: Newness %, Sizing Availability, Core Line Out-of-Stock Rate, Markdown: Velocity & Depth of Discount, GMROI at all levels. 💡 Ensure Comprehensive Product Attribution Enrich product data with great attribution to accurately gauge customer demand by any product facet. This is invaluable insights for decision-making. 💡 Optimise Price Points Identify and capitalise on the pricing sweet spot, not only the sweet spot that’s acquiring you customers but also the sweet spot which is upselling and retaining customers for you. Invest and build on these and adapt as the market or customer base changes. 💡 Identify Core and NOOS Lines Prioritise Core and Never Out of Stock items to maintain consistency and meet ongoing demand. These items usually have higher margins and should have great stock turn due to predictable demand. 💡 Focus on Top-Performing Products Apply the 80/20 rule, concentrating efforts on the top 20% of products contributing to 80% of sales, while streamlining the long tail. The goal is to continually adapt and meet the customer where they’re at in terms of their demand for product. Focusing on key metrics that matter empowers teams to drive sustainable growth and adapt to the evolving market dynamics effectively.