T-Pro Solutions demystifies in-store promotional sales data through predictive analytics

By Mary Ellen Shoup

- Last updated on GMT

About 20% of manufacturers' top line revenue is spent on promotional sales activity in the store, says T-Pro's CEO and founder. ©iStock/SvetaZi
About 20% of manufacturers' top line revenue is spent on promotional sales activity in the store, says T-Pro's CEO and founder. ©iStock/SvetaZi

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T-Pro Solutions has addressed a major hurdle facing many consumer packaged goods (CPG) brands by harmonizing multiple silos of promotional in-store sales data into one visual database.

T-Pro uses Amazon cloud-based web services to provide a combination of predictive analytics, post-event analysis, and trade planning optimization for its customers.

The company works with multiple brands across the CPG industry including Land O' Lakes and Welch's to help improve process efficiencies by providing data visualization of real-time post-event analysis of promotional sales.

T-Pro CEO and founder, Terry Ziegler, said, “We’re kind of evangelizing this industry because there’s always been that wall between the manufacturer and the retailer and it really came down to trust of the data.”

According to Ziegler, T-Pro helps food and beverage manufacturers understand not only what the customer bought but also why they purchased that particular product. In addition, the cloud-based services calculate and visualize the cost of promotion for the manufacturer and retailer.

Shaking up the normal approach to promotions

On average, manufacturers spend 20% of their top line revenue on in-store promotions and advertising to entice consumers to purchase their products, Ziegler said.

“Retailers and manufacturers both tend to get into an anniversary type of approach; ‘Hey, it’s what I did last year, so why not try it again this year’?”​ he said.

“The barriers of change precipitated and facilitated that thinking because the data was so hard to get to.”

Through T-Pro’s post-event analysis tool, the manufacturer and retailer can see how much margin they made on any given product promotion. The company’s predictive planning and optimization then helps determine what in-store promotions should be replicated and in what time frame.

“We take into consideration seasonality, demographics, locations, that’s all in the data,”​ he said. “It’s the insights that come out of it that are the powerful thing.”

Tapping into consumer behavior

Consumers are basing their purchase decisions less on brand preference and more on other factors, according to Ziegler.

“When you go into a grocery store or a CVS or Walmart, you buy things for a reason and some of those reasons are driven by price and the reduction of price,”​ Ziegler said.

This decrease in brand loyalty creates an opportunity for T-Pro to look at other factors that may be driving customers to purchase a specific product such as price,promotional tactics, promotional plans, and display execution.

“You’re not married to a specific brand anymore; you’re in the store to buy cheese,”​ he said.

“The consumer will buy when it’s a certain price gap to private label or a certain gap to the market leader.”

T-Pro has seen a quantifiable impact in the industry by providing harmonized promotional sales data and in one instance has seen a $500,000 improvement for one of its customers by shifting the product price point and positioning at retail.

Related topics Retail & Shopper Insights

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