Elevate your performance when it matters most

How do you raise your game when you engage with your retail partners?

In a challenging trading environment dominated by conversations about price, it can be hard to see where the opportunities to excel really lie.

But there is one tried and tested approach that brings better results, as well as better relationships.

That approach is putting shoppers at the heart of the conversation. Not just now and then – but consistently throughout your trading cycle.

Earlier this month, I hosted a webinar with Andrew Arnold , where we shared supplier success stories in which a shopper-centric approach resulted in more positive outcomes. Check out a recap of those stories below.

Click here to access the full recording of the September webinar.

The delist

Considering only 18% of CPG professionals believe their business spends most of its time working in close collaboration or “joined-up planning” with key trading partners, it’s little surprise that delist conversations generally bring such anxiety.

They tend to be broadly adversarial situations and often feel like they’re win/lose, “brand vs. retailer” battles.

Understandable, given how much can ride on the outcome.

Two years ago, a liquor supplier approached Shopper Intelligence ANZ , somewhat disheartened, as a key retailer customer was threatening to delist a major SKU. Potentially very damaging news indeed for this business.

Broadly, the argument was that the brand in question had a 1-litre product and a 700ml version, and removing the 700ml wouldn’t impact the category all that much because the two products were largely substitutes for one another.

Now, the key to addressing this situation – or indeed any situation – is to address the underlying assumptions being made. In this case, there were three core assumptions the retailer was making:

1. The same shopper was buying both formats for similar occasions.
2. The lower-priced SKU attracted a less valuable shopper.
3. Shoppers would trade up with minor impact to the category if SKU X went.

With our help, the supplier explored what shoppers in the banner were really saying, so that they were able to table three alternatives - in fact, three truths that told a very different story. With our help, the supplier explored what shoppers in the banner were really saying, so that they were able to table three alternatives – in fact, three truths that told a very different story. And for each truth, there were strong proof points to support that alternate perspective. For example, the delist threatened line was bought predominantly by a younger shopper for consumption as part of celebration and party occasions.

In contrast, the other SKU was heavily favoured by older shoppers and used as a general stock choice.

As a result of this work, the conversation went in a very different direction and the product in question is still on-shelf today, but, more importantly, the big takeouts were:

• Lead with shopper not brand – pitch your case in terms that matter most to the retailer.
• Build a compelling story, not a spreadsheet – sure, the economics matter, but relevant stories will get your buyer’s attention.
• Concentrate on category outcomes – if you get the first two right, this flows naturally and positions you as a true growth partner and collaborator.

Joint Business Planning

At the other end of the strategic spectrum, you have Joint Business Planning.

This is a critical time for any business and one that often generates a lot of stress. A huge amount rides on the success of the JBP process, and there’s often a fear that if it goes wrong, heads will be on the chopping block!

This is how another client came to us 18 months ago, having been given the opportunity to plan at this level with a key customer for the first time in several years.

They were not short of ideas, proposals, or innovations, but crucially, they were highly motivated not to get stuck in the old “sophisticated selling” trap, where their brands took centre stage at the cost of customer centricity. They wanted to front up differently and that meant centring their approach around three key levers:

1. Understanding
2. Collaboration
3. Action planning

A shopper-led workshop model allowed them to do just that by focusing on key proof points within category DNA, shopper satisfaction and path to purchase triggers. Everyone who needed to be in the room for this half-day was present, from both the supplier and the retailer, meaning it was possible to forge a truly joint understanding of the category and common perspective of the opportunities and challenges that lay ahead. Most important of all was the focus on actions. Every section of the agenda called upon participants to think about what it meant for them and what the next steps would be, at an individual as well as a team level.

Of the many telling comments made post this workshop, the most resounding one came from a senior executive on the supplier’s team: “This session really hit the mark. Good data, good insights, good conversations. Really felt we were actively discussing how we could move forward together with our customer.” Thinking again about process before goals, the key learnings when it comes to JBPs are:

• Concentrate on building a shared view of the category and its opportunities with your trading partners.
• Quality time strengthens relationships – don’t be afraid to take control and make it happen.
• Actions, actions, actions – agree on them and lock them in before anyone leaves the room!

Outstanding performance doesn’t always come easy, especially when trading conditions are tough.

Yet time and again, those who prioritise a growth mindset and a genuine commitment to collaboration feel more confident and more inspired to achieve great things.

Call today for help elevating your performance.

This article was originally published online by our good friends at The Drinks Association