Household Panel

Household Panel Data

Household panel data presents (in our opinion) an underutilized opportunity for manufacturers to gain insight into consumer behavior. Retailers today are demanding performance from their suppliers not only in price, merchandising and in the supply chain but in providing insights into the consumer. This is not just to help a retailer manage a category, but to help them manage their entire business.

Example

E&J Gallo and Sons runs a highly effective trade promotion campaign.

When there is wine in the basket, 80% of the time, the basket is bigger

This conclusion, easily derived from panel data, gives the retailer a clear merchandising opportunity.

Panel data provides 3 actionable measures:

  • Market Penetration – fraction of shoppers shopping at any retail chain/outlet in any market
  • Store Trips – number of trips to any retailer in a year
  • Basket Size – how much is spent per trip

As the size of the panels increases, the identification of shoppers as ‘core’ and ‘non-core’ becomes more useful. (Core shoppers make 50% or more of their purchases at one retailer). Identifying to a retailer the reasons why their core shoppers ever shop at the competitor is of great value. This is doable, at least at a high level by combining panel data with consumption, promotion and out of stock information.

Learn more about what Ironbridge Software can do for your business.