Enter The NPD Group.
NPD can identify the trends and quantify opportunities through its data and provide thought leadership to make the data actionable for decision making. “Clients come to us because our in-depth knowledge ofindustries, our massive data sets, and proven modeling technique mean that we are well equipped to illuminate what that future looks like across the industries we cover,” says Rob Hill, President, Retail, The NPD Group. “For example, small domestic appliances have been on fire as people looked to cook at home, entertain in different ways. Coming out of the pandemic, the question is how do retailers best serve those consumers who have made these purchases and anticipate what they need next to extend the experience or meet new needs as an outcome.”
With more than 55 years of experience, NPD uniquely combines both point-of-sale tracking data from retailers and receipt data from its Checkout omnichannel panel of 150,000 active, engaged buyers who share purchase information with it monthly.
This robust data means that the company has the most reliable view of what is selling in the more than 20 industries they serve, plus the buyer analytics that provides insight into what’s happening and what to expect in the future. On top of that, NPD brings years of industry expertise in general merchandise and food service and thought leadership that makes the data relevant to guide decision-making.
For instance, recently, one of NPD’s retail partners wanted to better gauge how their shopper segmentation was working to move the needle across key groups. “Tagging our Checkout panel with their segmentation, we were able to help this retailer understand a whole host of things including how effective their media and promotion is, how to stop leaking sales to other retailers, and how to drive long-term loyalty and capture share of wallet,” informs Patty Altman, EVP, Analytics, The NPD Group.
While the case is a high-level engagement, there are many simple analyses. Leakage trees – a very simple and tried and true CPG analysis – are now available and gaining traction in the discretionary categories NPD measures. These studies show in a very simple yet powerful view when, where, and how shoppers convert to buyers for a given retailer and its competitors. With this analysis, a retailer can answer questions such as what percentage of their shoppers buy plus-size apparel. Going a step further, NPD can understand the demographics of these shoppers and other key diagnostics. This information helps inform strategies to stop the leakage and quantify and convert meaningful opportunities.
What further differentiates NPD is that it has the largest active, engaged omnipanel in its industries. “This means that our clients can leverage the information with confidence to understand evolving consumer trends across all channels – in-store and online,” states Hill. More importantly, NPD has over 1.5 million people who’ve downloaded its app. They also have 350,000 panelists who provide tracking information and over 150,000 active, engaged buyers.
“To get a great and accurate read, only those panelists who are good reporters should be used. This is different from surveying panelists – anyone who is identified in the panel and can recall that purchase can provide good insights for that point in time survey. However, if you want to solve why you are losing shoppers to other retailers, only a panel based on good reports can give you a clear answer. When you have millions on the line for the decisions you are making, this is a critical distinction,” concludes Hill.