Mark Price

CPGmatters: Generalizations Don't Work Because Shopper Behavior Varies - dunnhumby

December 27, 2009

FROM RETAILWIRE:
Can the spectrum of purchase behaviors within a category mean that average measurements mask what's really going on? What are the opportunities as well as challenges of drilling down to individual purchasing patterns within different categories? How will that capability impact loyalty marketing?      [more...]

With the introduction of customer-level data, dunnhumby has revolutionized the CPG industry. What they are finding is consistent with other direct-to-customer retailers--less than 20% of customers represent between 45-60% of revenue and more than that of profit. The movement of these customers in their loyalty to the retailer as a whole and to brands in specific is critical, since they spend greater amounts annually than other customers. Also, since they purchase more frequently, the impact of their changes is more quickly felt.

Understanding Best Customers, and establishing a consistent relationship with them, is the job of marketers in 2010 and beyond.