Passive Data Collection
Companies can get data from customers in several passive unobtrusive ways. Examples include:
Point of sales data – Scanner data
Grocery business + health and beauty aids
The data chain characteristics are as follows:
Several companies offer point of sales data. Examples include ACNielsen, IRI, SPINS. These three companies give you data of different kinds of point of sales. ACNielsen and IRI typically deal with traditional kinds of stores that you have in grocery stores, traditional products. SPINS gives you lots of information about organic products
Why do people pay for point of sales data?
For example, as a marketing manager, you would like to answer the following question: How do promotions impact my sales? To answer this question, you need good data about promotions. You need good data about sales. Point of sales data can get you that information.
Ditto (and more) at the individual level
Obtaining a richer set of performance measures beyond market share
(i.e., less than the old lag time of 8 weeks or more)
What kind of questions can we answer with this kind of data?
Caveats
Media planning – Radio, TV, Social Media (covered as next sub-topic)
Web data
Mobile data
Point of sales data – Scanner data
Grocery business + health and beauty aids
The data chain characteristics are as follows:
- 80-100 CPG manufacturers
- 60-100 Major warehouse and distribution centers
- 30,000 supermarkets
- 80,000,000 households
- Geography x Product x Time x Variable
- G x P x T x V> 10,000 even for one category
Several companies offer point of sales data. Examples include ACNielsen, IRI, SPINS. These three companies give you data of different kinds of point of sales. ACNielsen and IRI typically deal with traditional kinds of stores that you have in grocery stores, traditional products. SPINS gives you lots of information about organic products
Why do people pay for point of sales data?
- Completeness:
For example, as a marketing manager, you would like to answer the following question: How do promotions impact my sales? To answer this question, you need good data about promotions. You need good data about sales. Point of sales data can get you that information.
Ditto (and more) at the individual level
Obtaining a richer set of performance measures beyond market share
- Timeliness:
(i.e., less than the old lag time of 8 weeks or more)
- Accuracy
What kind of questions can we answer with this kind of data?
- Impact of promotions:
- Who buys our products on promotions?
- Are customers borrowing from their future purchases? à Say if I as a costumer buy two cartons of orange juice today, is it borrowing from my future sales? I might hold off on buying future orange juice.
- Will cherry pickers become loyal? à Say, if I decide to buy, for example, Tropicana today, instead of Minute Maid, because Tropicana was offering a promotion, will I become loyal to Tropicana?
- Impact of displays:
- Which type of displays (e.g., end of aisle/middle of aisle) work better?
- Within and Across Category :
- Which categories are substitutes / complements?
Caveats
- Misses out on convenience stores, and some big retailers (Whole Foods, Aldi, Trader Joes)
- Cannot make causal statements
- We can get information on the promotions for the products.
- We can get information on sales of the product.
- But we cannot know if there was a causal impact of this.
- Don’t know behaviors and psychographics
- Don’t know the exact set of choices faced by the consumer at the time of decision.
Media planning – Radio, TV, Social Media (covered as next sub-topic)
Web data
Mobile data