Yes – we forecast a 5-7% growth in Customer Purchase Intent (worth £100m to the UK cleaning market). The Customer Purchase Intent spikes across two key missions;
- The “Make it Sparkle” mission peaking in February (week commencing 10th), including floors, windows and upholstery cleaning equipment
- The “Deep Clean” mission peaking in April week (week commencing 14th), including carpets, furniture & appliances
With this insight retailers can better time promotions, giving customers the best offers, when they most want them; and maximise sales from featured space by placing the most in demand items at front of store and on gondola ends (and online equivalents). Category managers can go one step further using Summit’s ‘headroom methodology’ pinpointing category revenues left on the table during last year’s trading. This will help in building a business case for budgeting.
As you can see in this case study – revenue is at its lowest point for products included in the ‘Make it Sparkle’ mission when Customer Purchase Intent is at its highest. Based on proprietary methodologies we have been able to calculate that the retailer should have yielded £165K more sales in the week commencing 9th February, with even more revenue left on the table week commencing 24th February. It’s a slightly different story for the ‘Deep Clean’ mission, where the retailer is doing a good job driving sales during the April peak in Customer Purchase Intent but has missed a golden opportunity to drive sales week commencing 17th February.
In a very practical way, the headroom calculation enables retailers to see the amount of money they have left on the table in each category in each week. Therefore, Purchase Predictor enables categories to identify the one week where it will be easiest to drive incremental sales. To capture this headroom, the category manager could:
- Run a multibuy promotion on household cleaning products from week commencing 10th February, with support in a weekly flyer or circular
- Utilise seasonal space with specialist cleaning products in February and early April