Understanding who, what and where has long been an important use of data, but things are about to change as TWC’s brand-new platform discovers the most important question of all. TWC Managing Director, Tanya Pepin, caught up with Wholesale News to chat all things data.
If you set yourself the challenge to read the industry press or attend a work event and avoid the word ‘data’, you would fail within the first few minutes. More than a trade buzzword, data, and the insight it brings, not only enables us to view facts but it provides us with the opportunity to open up the bonnet and explore what’s underneath.
However, data is not just about numbers. The numbers have to create a picture and tell us a story and, most importantly, drive our decision-making and actions, or they’re worthless. Every wholesaler has access to data, but is it the right kind and are you using it to benefit your business?
During the past 13 years, TWC has established itself as the home of data-driven insight for the wholesale sector, working in partnership with more than 90 UK wholesalers and 150 suppliers to create powerful data platforms, market analytics and digital engagement tools to support its clients to stay ahead in an ever-changing marketplace.
And it’s not just crunching numbers; far from it. TWC’s in-house research team delve deep into much more than sales figures to explore shopper missions and market perception, for example, to really unearth the size of the prize and discover how the sector can make the most of this opportunity for sales growth.
WN: Tanya, tell us what Channel Track is and why this is different?
When it comes to small basket convenience and eating out of home, we all recognise the importance of knowing sales figures. In short, knowing what was bought and where (ie in which channel), but we wanted to take this a step further.
In addition to the what and the where, we wanted to capture the when, so which day of the week and what time of day, and who was making that purchase. Then, crucially, we wanted to know why and this is where Channel Track is so different.
We knew that by capturing real-life motivations, missions and behaviours, we could turn raw transaction data into truly invaluable insight, allowing subscribers to not only measure performance but also understand the drivers and then act on the opportunities.
WN: What channels does this cover?
This covers what we refer to as ‘small basket retail’, which includes independent convenience stores (which we understand in detail from SmartView Convenience, our market read for independent convenience stores) and multiple convenience stores such as Tesco Express, Sainsbury’s Local, Morrisons Daily, Asda Express. This also includes small basket top-up trips in supermarkets and discounters.
It covers foodservice too, such as dining out in managed and independent pubs, restaurants and hotels, as well as quickservice restaurants, both on-premise and takeaway. It also includes convenience and foodservice food-to-go purchases, online ordering and quick commerce from retail and foodservice outlets.
WN: That’s a lot of outlets and a lot of data. Why do we need to know this?
It is a lot of data, but it’s absolutely essential if we want to understand the root causes for underperformance and, therefore, identify ways that we can drive growth. We have identified a £2bn opportunity across independent retail and foodservice, but we need to know how we can maximise this; it can’t rely on best guesses.
WN: A £2bn opportunity? How has TWC identified this?
I know, it’s a massive opportunity for growth that is really exciting. We’ve based this on the growth that would come with one more transaction per retail store per day and then for 10% of those transactions to contain one more item. A similar opportunity can be found in foodservice if one third of the population went out on one more occasion per quarter.
WN: So how does it work?
We combine a number of data sources to create one overarching big picture, including credit/debit card spend data from 10.2 million uniquely identifiable customers’ transactions in more than 140,000 hospitality and 40,000 grocery retail outlets. We also access wholesaler-supplied c-retail EPOS data from SmartView Convenience.
These will give us an overview of performance by each sector, sub-sector, chain or group of outlets. It will reveal which KPIs are driving market performance and change – is it footfall, visit frequency or average spend, for example.
We then add continuous shopper research into the mix. Interviewing 70,000 consumers in the first year alone, this insight, combined with banking data, will reveal shopper missions, and purpose and missed sales opportunities. It also explores impulse buys, consumption occasions and why particular outlets were chosen above others.
In addition to the broad overview, this insight will enable us to explore topical issues such as performance of chains versus indies, NPD, challenger brands and own-label to delve deep into the opportunities for growth.
WN: Who will benefit most from this?
Honestly, I think everyone in the supply chain. This insight is critical for suppliers operating in foodservice and convenience retail, as well as wholesalers that supply those sectors. Symbol and fascia stores can benefit enormously from the insight, as well as foodservice operators, both chain and independents.
It’s not just those that form part of the supply chain that will benefit either; it’s essential insight for those industry bodies that serve this channel, such as Association of Convenience Stores, Food & Drink Wholesale UK, Scottish Wholesale Association and the Scottish Grocers’ Federation. The insight will also benefit any service providers or consultants operating in these channels.
