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Understanding your customers can lead to sweet results—for them and for your business's brand performance. Scintilla Shopper Behavior makes the method clear.
The opportunity
Two SKUs forecasted for $400,000 in annual incremental profits for a food supplier. They were eager to use existing shelf space to grow profits for their brand by riding recent momentum:
- Total units moved grew 3% even with Points of Distribution (POD) down 26% over the same time period
- Repeat rates of 23%, up 4% year over year*
- The path to more incremental growth was not clear with PODs down
The insights
Shopper Behavior Performance in Detail and Trial and Repeat reports revealed room for innovation. Two popular chocolate chip flavors were:
- #2 and #3 in repeat rates in new items for their whole company*
- #3 and #4 in loyalty penetration for the whole company*
- Rated 4.7 and 4.9 starts online*
- Incremental to brand sales by 29%*
The results
To meet customers' chocolate chip craving, the supplier moved quickly:
- Two new chocolate chip flavors were rapidly developed and launched in January '23
- An off-cycle item swap replaced two old SKUs on shelves with new chocolate chip items
- These two items are on track for $400+ profit growth due to higher repeat rates and units moved
References:
*Scintilla first-party data: over a 7-week period from Q3 FY'22 to Q3 FY '23
**Individual results may vary
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