Scanner data, or data collected by barcode scanners at point of sale, has long been used by companies to track sales and inventory. However, there are limitations to this type of data that can make it fall short in providing a complete picture of consumer behavior and market trends. In this article, we will explore some of the reasons why scanner data often falls short and offer alternative data sources that can provide a more comprehensive view of consumer behavior and market trends.
One of the main limitations of scanner data is that it only captures a small portion of consumer transactions. While it can provide valuable insights into sales of specific products at specific stores, it does not capture sales from other channels such as online, direct-to-consumer, or wholesale. This means that companies relying solely on scanner data may be missing out on a significant portion of their sales and market trends.
Another limitation of scanner data is that it does not capture the reasons behind consumer purchases. While it can provide information on what products were sold, it does not provide insights into why consumers made those purchases. This can be a critical piece of information for companies looking to understand consumer behavior and make strategic business decisions.
Additionally, scanner data may not capture the full context of a consumer’s journey. For example, it may not capture when a consumer researched a product online before making a purchase in-store, or when a consumer was influenced by a social media campaign. Without this context, companies may be missing out on valuable insights into consumer behavior and market trends.
So what can companies use instead of scanner data to gain a more comprehensive view of consumer behavior and market trends? There are several alternative data sources that can provide a more holistic view of consumer behavior and market trends. For example, companies can use consumer surveys and focus groups to gather insights into why consumers make certain purchasing decisions. They can also use social media listening tools to track consumer conversations and sentiment about their products and brands.
In addition, companies can use web analytics tools to track and analyze consumer behavior on their websites, which can provide valuable insights into consumer preferences and purchasing patterns. Finally, companies can leverage third-party data sources such as demographic and lifestyle data to gain a better understanding of their target market and consumer segments.
In conclusion, while scanner data can provide valuable insights into sales and inventory, it often falls short in providing a complete picture of consumer behavior and market trends. Companies looking to gain a more comprehensive view of consumer behavior and market trends should consider using alternative data sources such as consumer surveys, social media listening tools, web analytics, and third-party data sources. By leveraging these alternative data sources, companies can gain a deeper understanding of their target market and make more informed business decisions.
Many companies commit substantial financial resources to obtain detailed information on product sales through scanner data. However, scanner data does not always live up to its promised potential. Deeper, more actionable insights are often required to create strategies for innovation and growth.
As a long-time Research Analyst and Industry Studies Manager at Packaged Facts, a division of MarketResearch.com, Jennifer Mapes Christ understands the limitations of scanner data well, particularly as it applies to food and beverage, packaging, and pet products and services.
I sat down with Jennifer to discuss this issue in more depth and learn about potential solutions for filling this common information gap. Read our conversation in the Q&A below to find out more, or watch the video for additional insights.
Why isn’t scanner data always enough information to gain a competitive edge? What does it miss?
Scanner data tells you the “what,” but it doesn’t tell you the “when,” “how,” or “why” products are selling and performing at a certain level. Scanner data can’t tell you about consumer habits, key occasions and dayparts, or niche areas that offer promising growth opportunities.
Scanner data can tell you a lot about what products are selling and how they are performing in the market, but it isn’t forward-looking, and it doesn’t provide forecasts. It doesn’t tell you what market segments to pursue next or where to focus your strategy.
How does Packaged Facts fill that need for deeper, more comprehensive, and forward-looking insights?
Packaged Facts offers data-driven analysis of consumer habits and preferences, marketing innovations, product launches, and competitive trends. This information can help you make informed decisions about your products, marketing, and overall strategy.
For example, Packaged Facts Food & Beverage reports highlight:
Trends in consumer habits, feelings, and outlook
Promising product and niche areas
The latest marketing and distribution innovations
Key occasions and dayparts
Competitive analysis among suppliers
We know companies are always looking for growth opportunities. How does Packaged Facts help achieve that goal?
Our research can point you toward where you could go next in terms of brand extensions and licensing opportunities. As an example, The Coca-Cola Company launched Tic Tac Coca Cola Breath Mints and Tic Tac Sprite to leverage their brand power and unique flavor profile into a new product opportunity.
Both brand extensions and licensing can be a great way to grow your brand and reach new customers by bringing your existing customers with you into new areas, while limiting marketing expenses.
If you are interested in learning more about food and beverage segments with the best prospects where your brand or product flavors could be a match, Packaged Facts has a variety of reports available.
What are some specific titles that you think stand out in this regard?
The reports Food Market Outlook and Beverage Market Outlook cover big-picture trends throughout the industry with annual updates.
We also delve into key growth opportunities and trends in specific market segments, such as:
In addition, we publish consumer insights reports that provide data-driven analysis of consumer preferences, habits, and activity. Key titles include:
What are some other ways companies can use Packaged Facts to identify opportunities in adjacent markets?
We see significant cross-over between human food trends and pet food and treats. Since people consider their pets to be part of their family, they often want their pets to follow similar diets and health philosophies, whether that’s gluten-free, vegan, or keto. Pet companies can study human food trends to better understand where the pet food market is headed next.
We have reports on all these areas, and these food and beverage reports can be highly useful for pet companies as well.
We can help you better understand these human food and human eating trends so that you can develop products that meet the needs of today’s discerning pet owners.
Whether you are interested in food and beverage or pet products, going beyond scanner data—and exploring the complex factors shaping consumer behavior—will give you more visibility, more options, and more actionable insights for what’s next on the horizon.
About Packaged Facts
Packaged Facts publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at our company website and are also available through MarketResearch.com.