Influence Key Business KPIs through Market Intelligence

Why is it important for companies?

Market intelligence helps companies make data-driven decisions based on market trends, competitor analyses, and customer needs and can aid in identifying potential opportunities and threats in the market. Without using market intelligence, companies are making decisions based on assumptions and guesswork, which can lead to inefficiencies and missed opportunities.

Unlock your business growth potential through market intelligence & data insights:

There are various use cases where market intelligence can influence key business KPIs, including brand visibility, voice of customer, product content, price and promotion, product availability, and seller performance:

• Brand Visibility
  Visibility is essential for brands as it determines their market share of shelf. Market intelligence can provide insights into the drivers for low or high visibility, enabling companies to take corrective actions and improve their brand’s visibility.
• Voice of Customer
  Customer experience and satisfaction are crucial for companies to retain and grow customer lifetime value. Market intelligence can help companies refine their strategy and improve overall customer experience and satisfaction by providing insights into customer needs and preferences.
• Product Content
  Content is crucial for driving engagement and conversion. Market intelligence can provide insights into content gaps and inconsistencies compared to benchmarks and leverage these insights to optimize product content to drive engagement and conversion.
• Price & Promotion
  As two of the most important factors that impact sales, it’s vital to get price and promotion just right. Market intelligence can provide insights into the factors that drive price changes, enabling companies to make informed, better decisions on their pricing strategy.
• Product Availability
  For any product seller, it is essential to avoid stock-outs and maintain optimal stock levels. Market intelligence can provide insights into assortment changes and key product trends, enabling companies to take corrective actions and avoid the risk of loss due to stock issues or shipping lead times.
• Seller Performance
  Hugely impactful towards sell-out for manufacturers/brands, seller performance is crucial to maintain. Using market intelligence, brands can gain insights into the impact of seller mix on sell-out, unauthorized product sales, and compliance with brand guidelines and leverage these insights to drive higher transaction value through channel partners.

Here are the top five use cases where companies can leverage market intelligence:

Use Case 1: Competitive Benchmarking

In the competitive landscape, understanding your position in the market is essential. Competitive benchmarking provides a true understanding of the competitive position in the market, helping companies to gain high-quality, like-for-like market comparisons from the customer viewpoint with 97%+ accuracy in product matches. Insights on competitor benchmarks, price indexes, thresholds, and pricing ranges/ variations power a three times faster response rate to competitor price changes and deliver an 8-10% increase in revenue through data-driven pricing actions. Remember, it’s all about staying one step ahead of your rivals!

Use Case 2: Assortment Optimization

Assortment optimization enables companies to optimize their portfolio mix to meet customer and market demand. With market intelligence, you can take this further by maintaining optimal stock levels, preventing stock-outs, and assessing the influence of core products. By replacing 10% of the catalog containing underperforming SKUs with high-potential new SKUs, companies can achieve a 5-8% increase in revenue. Additionally, this use case can result in a 3-5% increase in average order value and a 15-20% increase in NPS scores. It’s all about finding the right mix that resonates with your target audience!

Use Case 3: Dynamic Pricing

Pricing strategy plays a pivotal role in maximizing margins and capturing the market. Market intelligence and data analytics empower businesses to understand price-demand elasticities, customer sensitivity, and the impact of competitor price changes. With this knowledge, you can effectively manage prices throughout the product lifecycle, prevent margin leakage, maintain price consistencies, and boost overall product performance. The result? A 4-8% margin lift across product categories and the ability to implement comprehensive discount policies based on volumetric purchase, customer type, and product/brand type. Time to set those prices dynamically and watch your profits soar!

Use Case 4: Merchandising & Content Effectiveness

In the digital realm, content is king, and market intelligence reigns supreme. By analyzing data on content effectiveness, identifying gaps and inconsistencies, and optimizing product content, you can drive content engagement and enhance digital conversion rates. This means reducing content production costs by up to 30%, experiencing a 20-25% lift in cart addition rate, and a 6-8% lift in conversion rate. Remember, compelling content is the key to captivating customers and boosting your bottom line!

Use Case 5: Market Insights & Performance Suite

Monitoring and optimizing key performance indicators throughout the buyer journey is crucial to driving sell-through and achieving higher transaction values through channel partners. Market intelligence allows you to obtain faster insights on channel gaps and opportunities, generate 360-degree performance reports, and adjust content, stock, pricing, and marketing activities, accordingly. By leveraging these insights, you can witness a 15-20% increase in sell-out, achieve a threefold higher conversion rate through better use of rich content by authorized sellers, and identify market opportunities 80% faster. It’s time to take charge of your market insights and drive your business to new heights!

Industry Experience in Leveraging Market Intelligence for these 5 Use Cases

Industry experience has shown that leveraging market intelligence for the above five use cases can yield remarkable results. Companies across various sectors have witnessed the power of data-driven decision-making and the impact it can have on their KPIs.

For example, a leading retail brand utilized competitive benchmarking to gain insights into competitor pricing strategies. By responding faster to price changes, they not only maintained their competitive edge but also experienced an 8% increase in revenue. Similarly, a multinational industrial supplies online distributor used assortment optimization to replace underperforming SKUs with high-potential ones, resulting in a 2% revenue increase and a significant boost in average order value.

In the realm of dynamic pricing, a technology company leveraged market intelligence to understand customer sensitivities and competitor price changes. This allowed them to implement effective discount policies and incentive plans for their sales team and achieve a 4% margin lift across their product categories. Additionally, an online marketplace improved its content effectiveness through market intelligence, leading to reduced production costs, higher cart addition rates, and increased conversion rates.

Companies in various industries, from electronics to fashion, have harnessed market insights and performance suites to optimize their channel strategies. By aligning content, stock, pricing, and marketing activities with real-time insights, they each have achieved results like a 15% increase in sell-out and significant channel growth.

Power your Next Phase of Growth through Intelligent Strategies & Insights

“Influence Key Business KPIs through Market Intelligence” is not just a catchy title but a proven strategy for success. Market intelligence enables businesses to make data-driven decisions, optimize operations, and drive growth. From competitive benchmarking to assortment optimization, dynamic pricing, merchandising and content effectiveness, and market insights and performance suite, there are a wide array of use cases that hold immense potential to produce positive impact on key business KPIs.

So, don’t leave your business success to chance. Embrace the power of market intelligence, unlock the insights hidden within your data, and steer your business toward growth and prosperity. Remember, in the world of business, knowledge is power, but applying that knowledge strategically is what truly sets you apart.

For more information on how you can apply market intelligence to your business strategies, contact our team today.