An ECR Tag Recap: It’s Time for a “Digital Reality” Check!
Recently, I joined leading retailers, CPG manufactures and solution providers in Berlin, Germany for the annual ECR Tag event with the theme of “Digital Reality”, which resonated with the attendees experiencing first-hand the challenges and opportunities that this new retail reality has created. This event featured presenters from eBay, Amazon, Unicoop Tirreno, Globus hypermarkets, REWE group, IKEA, Metro Cash and Carry, OTTO group, Unilever, P&G, and more.
A powerful takeaway that came out of the conference was that the online retail channel is not an extension of the brick and mortar model, but it is a new model with different cost drivers and perceived value for shoppers. In addition, it’s not about online vs. offline, but now there is one customer ecosystem. In order for retailers to thrive in this new ecosystem they need to leverage their big data to ensure they are moving more towards 1:1 marketing and offering personalized offers to provide customers with the right product, at the right price, at the right moment and through the right channel.
The CPG companies took a deeper dive around the topic of digital reality. Both Unilever and P&G spoke about how they are leveraging big data and predictive analytics to uncover new customer trends, changes in media consumptions and how digital helps them have more direct communications to consumers, further strengthening their ability to influence the consumer’s purchasing behavior and strengthen their perception of the CPG’s brand.
Revionics and Unicoop Tirreno Session Highlights
Keeping with the theme of the conference, Revionics and our customer Unicoop Tirreno, one of the largest retail consumer cooperatives in Italy, co-presented on a relevant topic: “Empowering Precision: Pricing in Category Business Planning”
The session featured Cristiano Carpi, Head of Marketing for Unicoop Tirreno, Florian Strecker, Revionics’ Regional Director for Central and Eastern Europe, Russian Federation, and me. We noted that today more than ever the Category must work for the customer and leveraging predictive technology is critical.
Shoppers can purchase products from anywhere 24/7, competition is fierce and retail technology advances continue to accelerate rapidly. To strengthen category performance, at the same time driving and achieving enterprise level financial results, retailers are adopting Price Optimization solutions, which provide data- and science-driven recommendations and strong predictive analytics capabilities. More than 200 retailers globally have received benefits from these solutions including:
- The ability to validate category strategies through customer data and maximize margins
- Support to better meet category and business performance targets (e.g. unit sales, revenue, profit, margin, competitive), maximizing the results through data science
- Achieving localization by applying price sensitivity criteria to store zone structure
- Knowing when it’s time to change a category strategy as you can run what-if scenarios and have full transparency into the effect specific approaches are having on your sales and profits
Unicoop Tirreno’s Price Optimization Journey
Cristiano Carpi, Head of Marketing for Unicoop Tirreno, presented the benefits that his company has received from leveraging Revionics’ Price Optimization solution. Unicoop Tirreno started using the solution to help broaden their pricing process to include non-KVI’s and non-comparable items, speed up the pricing process and make more relevant and impactful price changes.
By leveraging Revionics’ solutions, Unicoop Tirreno’s achieved sales unit profit increases, enhanced localized category strategies, gained more precision with forecasting, sped up their response to market shifts and adopted more efficient, price rules. For the second consecutive year, Unicoop Tirreno has seen steady performance growth in all business levers through the use of Revionics End-to-End Optimization solutions.
Unicoop Tirreno’s price optimization journey has just begun as they plan to continue to drive value with Revionics solutions.