Playing Favorites (Among Your Customers) Will Pay Off

Although shelves are not as quite as barren as they were in March, shopping behavior is far from normal, with long lines outside stores to prevent crowds and maintain social distance. Most brands, particularly pantry staples, home and personal care, have not yet recovered from the surge in demand from traditional retail and ecommerce.

By now you have likely cancelled Q2 promotions and simplified your supply chain to focus on your top performing items. If you are still short on inventory, you might be tempted to short all customers equally. But customers are not all equal. If you don’t already have account segmentation, now is the time to determine your priority accounts based on distribution, profitability, and ease of doing business/strength of relationship. 

Fill the orders of your most important customers first and at a higher fill rate. The most important customers are not necessarily the largest or the most demanding. They are the ones that have supported your brand in the past. You can help them better serve their shoppers during this time, reducing stress for all, and invest in a business relationship that is sure to pay off in the long run.

Articulate your segmentation strategy, gain alignment internally, and be transparent. People place greater trust in, and want to do business with, leaders that clearly and consistently communicate fact-based decisions.

We don’t know how long this disruption will last or the long-term effects. You can’t make smart plan adjustments without having a sound strategy. If you haven’t segmented your customers or created account specific P&L's, Omnium can help. Contact us to learn how.