Data is Shifting the CPG-Retailer Relationship

 

CPGs and retailers have always had strong ties. With consumer behavior shifts, more competition, and new technology tools, that relationship is evolving. In the center of the CPG-retailer relationship are AI and machine learning. Taking on this topic, Retail Refined host Melissa Gonzalez spoke with Ryan Powell, VP Retail Strategy and Consulting, at Insite AI.

Insite AI offers a solution built on AI and customer relationships, enabling retailers and CPG brands to make the best decisions. Powell has a long history of working with CPGs on solving problems related to category management, forecasting, and revenue growth management.

Powell explained his role, “I work with customers trying to rollout AI roadmaps and those trying to reach this next generation of technology and want to accelerate.”

AI applies well to the CPG-retailer relationship because there’s so much of it. Collecting is only the first part. Next must come analysis and then action. CPGs and retailers are still finding their way in applying AI and machine learning in a meaningful way, as they must first break foundational boundaries.

One thing Powell is clear about is the fluctuating CPG-retailer relationship. Much of that is due to consumer behavior changes and the COVID effect. “There have been these mini-cycles of behavior that still aren’t on steady ground, and that’s shifting the relationships of retailers and CPGs.”

Powell also spoke about the monetization of data and how CPGs can attain it in a more targeted way. “Monetization does often mean the data is cleaner, better, more structured, and richer. In an ideal world, the data supports retailers and CPGs playing together seamlessly to satisfy the customer.”

Powell offered the example of Boston Beer Company. “They have multiple retail data sources and are drilling into specific categories then requesting that from retailers. It’s very specific to a point where they can accurately predict what will happen efficiently.”

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