Sentrana Announces Model that Provides Insight for Expanding Market Share
Today Sentrana announced the development of a quantitative model that allows a distributor to understand what their customers are purchasing from competitors. By understanding the customers’ entire purchase basket, the distributor can identify items to target with promotions in order to capture a greater share of wallet in their customer base and drive profitability.
Developed by Sentrana’s quantitative modeling team, the Market Share Expansion (MSE) model provides a complete picture of a customer’s basket, which is usually not possible in foodservice because the typical customer purchases products from various sources, including multiple distributors and cash and carry establishments. Even if a customer purchases the bulk of their items from one distributor, rarely do they purchase 100% of their products from a single source. Sentrana’s MSE model leverages insight across a distributor’s entire customer base to predict the contents of a specific customer’s purchase basket. The distributor can then compare what they are selling to the customer against their purchase basket to identify additional items they can promote that the customer is expected to be buying from a competitor.
The model predicts the complete list of items your customers purchase from all sources and builds the contents of their total basket. It uses information from the distributor, such as the list of items a customer is purchasing and the make-up of similar customers’ baskets, along with information about the relationships between products, customer attributes, and customer purchase behavior. Additional information, such as that collected from customer surveys, can also be integrated into the model to refine predictions. Once the distributor knows the customer’s purchase basket they can identify which items to target for penetration opportunities within the customer.
“The foodservice industry has grown very slowly over the past few years due to the overall economic slowdown. As a result, distributors are eager to find new ways to expand their business,” says Principal Scientist Liuxia Wang, PhD. “The Market Share Expansion model provides a proven means for distributors to target and grow business within their existing customer base.”
The Market Share Expansion model provides distributors with previously elusive information on their customers’ baskets, allowing them to make more effective penetration decisions.
Headquartered in Washington, DC, Sentrana helps business leaders holistically coordinate their marketing, pricing, product mix and sales activities to drive demand for their products and services with the data and capabilities they already possess. The Sentrana Precision Sales & Marketing Cloud allows sales and marketing teams to easily execute precise actions at an individual customer and product level to drive growth and profitability. By providing precise actions at the most granular level, we enable our clients to customize their product and service offerings to the unique preferences and needs of each customer in alignment with enterprise performance objectives.