Retailers can influence profitability only when their Marketing and Commercial teams mutually support each other.
This is usually difficult because they both have different data sources, so marketing may be reporting performance of ads while merchandisers are reporting performance of SKUs.
But the PPM concept can change this, and the goal of our platform is to create an environment that would enable such collaboration in an actionable manner.
STEP 1: Bigger Picture - Business priorities and complexity
Commercial teams and e-commerce leaders share their business goals and priorities
Connect data
Shape Good and Bad product segments in New Product Insights based on these business goals
Examples:
Company A needs support on specific brands because you may care about good relationships with these brands
Company B needs support with New releases and seasonal drops to boost the Sell-through
Company C needs to lower Returns
STEP 2: Gather insights from all the channels
Analyze merchandising Good and Bad products with marketing optic and metrics in the new Product Insights:
STEP 3: Balancing priorities with marketing performance
Look for the ideal intersection between optimal marketing performance and fulfilling business needs.
Build a strategy for each channel - create segments for different goals as a result of the analysis
Launch the campaign or other activities, or edit existing campaigns
Examples:
Exclude the worst offenders - Low Margin, Low conversion segment is wasting nearly 9 000 GBP/month and is not fulfilling marketing nor business goals.
Promote underpromoted potential stars - High Margin, Low spend segment consist of nearly 1 400 products without any marketing support.
Note: Segment with no spend is good analytical asset, but it's not recommended for marketing execution. If you want to execute this strategy, choose higher spend limit (e.g. 100 EUR / Low 10%) so you give an algorithm space to improve those products)
STEP 4: Report back on marketing activity and profitability
Merchandising takes into consideration marketing results
Make decisions on margin and other metrics
Re-evaluate product strategy
Informs marketing on the next priorities