According to the survey, most respondents identify predictive analytics as a critical tool for improving trade promotion performance. More than half - 54 percent of respondents - view predictive analytics as important or very important for companies seeking improvements in this area, and 56 percent rated predictive analytics as being very desirable or the most desirable way for their company to improve its trade promotion efforts. However, a significant number – 24 percent – believe predictive analytics has limited importance.“We have detected a strong feeling that companies are not making the most of the data that their technology investments have generated, and, perhaps more worrisome, a large proportion of our survey respondents do not trust the data,” said Alex Kushnir, a managing director in Accenture’s Consumer Goods & Services practice. “The quality of the data can be impacted by a number of factors; the tools used to capture it, the number of steps in the trade promotion process and the talent used to analyze and leverage it. Companies need to look at the process from end-to-end to be certain of the quality of the data that their teams are using.” Other key findings from the study included:
- The volatile economic climate has encouraged two-thirds – 66 percent – of CPG companies to switch more than one quarter of their trade promotion spend to digital channels, and 20 percent expect to shift more than half of their trade promotion dollars to digital channels during 2013.
- 28 percent identified closer collaboration with retailers as being crucial to improving their trade promotions initiatives.
- 43 percent of CPG companies believe that greater integration is required between the business functions involved in the trade promotion process.
- 66 percent would consider outsourcing all or part of their trade promotion process.
- The same proportion – 66 percent – would use outsourced talent to help analyze and help them better understand their data.
- 55 percent would outsource to help leverage the data they have captured.