How do you leverage data and analytics to update consumer decision trees for beverages?

1 Identify data sources

The first step is to identify the data sources that can provide insights into your customers' decision-making process for beverages. These can include point-of-sale data, loyalty card data, market research data, online reviews, social media data, and customer feedback. You should aim to collect both quantitative and qualitative data, as they can complement each other and reveal different aspects of consumer behavior.

2 Analyze data patterns

The next step is to analyze the data patterns and look for trends, segments, and drivers that influence your customers' choices. For example, you can use data mining techniques to identify the most common purchase occasions, consumption occasions, and need states for beverages. You can also use cluster analysis to group your customers into different segments based on their demographic, psychographic, and behavioral characteristics. Moreover, you can use conjoint analysis to determine the relative importance of different attributes, such as price, flavor, packaging, health benefits, and brand image, for each segment.

3 Build or revise CDTs

Based on the data analysis, you can build or revise your CDTs for beverages. You should start with the main category (e.g., beverages) and then break it down into subcategories (e.g., carbonated drinks, juice, water, etc.). Then, you should identify the key attributes that differentiate the subcategories and the products or brands within them. You should also indicate the order of importance of these attributes and the percentage of customers who use them to make their decisions. You can use flowcharts, diagrams, or matrices to visualize your CDTs.

4 Validate CDTs

Before you use your CDTs for retail category management, you should validate them to ensure their accuracy and relevance. You can do this by testing them with a sample of your customers or potential customers. You can use surveys, interviews, focus groups, or experiments to ask them about their decision-making process for beverages and compare their responses with your CDTs. You should also monitor the performance of your products or brands in the market and check if they align with your CDTs.

5 Apply CDTs

Once you have validated your CDTs, you can apply them to improve your retail category management for beverages. You can use your CDTs to design your product assortment, pricing, promotion, placement, and merchandising strategies. For example, you can use your CDTs to select the products or brands that best meet your customers' needs and preferences, optimize your shelf space and layout, create appealing displays and signage, offer relevant discounts and incentives, and communicate your value proposition and differentiation.

6 Update CDTs

Finally, you should update your CDTs periodically to reflect the changes in your customers' behavior and the market conditions. You should collect and analyze new data regularly and look for any shifts or emerging patterns in your customers' decision-making process for beverages. You should also review your retail category management strategies and evaluate their effectiveness and efficiency. You should adjust your CDTs and your strategies accordingly to maintain your competitive edge and customer satisfaction.