VideoMining Presents Foodservice Insights at 2017 Convenience Foodservice & Beverage Exchange
CEO Rajeev Sharma leads breakout session “Understanding the Convenience Foodservice Shopper”
Rosemont, Ill., September 18, 2017—Rajeev Sharma, Founder & CEO of VideoMining, spoke at the Convenience Foodservice & Beverage Exchange (CFBE), a conference which brought together key c-store executives and solutions providers. The conference dove deep into the challenges and opportunities related to Foodservice programs in the c-store industry, highlighting the growing importance of Foodservice and Beverages to the entire industry.
Sharma hosted a breakout session entitled “Understanding the Convenience Foodservice Shopper” which used insights from VideoMining’s C-Store ShopperImpact (CSI) MegaStudy to outline opportunities for optimizing Foodservice offerings in c-stores. Highlights from the presentation included insights involving demographic trends, factors impacting pump-to-store conversion and daypart analysis.
“The CSI MegaStudy has shown that even with the positive growth seen throughout Foodservice programs across the industry, there are still many opportunities for improvement in certain areas,” stated Sharma. “We’ve seen from NACS State of the Industry data that Foodservice has grown to over one-third of c-store gross margins, but we think there is even more room to grow by optimizing conversion with data-backed strategies and continuous monitoring.”
An opportunity for overall improvement in c-stores, according to VideoMining data, is pump-to-store conversion, as only 16% of fuel buyers buy Foodservice categories. Overall, pump-to-store conversion is improving nationwide, but converting these customers to buyers of high-margin categories will continue to be extremely valuable to c-store operators.
Another valuable Foodservice strategy is to target Millennials, who will soon take over as the largest age group of c-store shoppers. This generation is known for snacking as well as tending to be more favorable toward Foodservice overall, making Millennials critical to the future of the c-store industry. Additionally, other demographic groups such as women and Hispanics are slowly becoming more prominent, giving a competitive advantage to the brands that are able to build loyal customer bases among these groups.
Sharma went on to discuss the importance of segmenting strategy by dayparts, as shoppers display different behaviors at different dayparts. Foodservice starts strong at Breakfast, with 29% of all in-store buyers purchasing from these categories. However, as the day goes on, that percentage declines to 9% in the Late Evening, although Food Prepared On-site makes a comeback late at night. These insights are a powerful starting point to test and optimize in-store marketing initiatives based on how real shoppers respond across different dayparts to encourage Foodservice purchases.
“Stores that are able to promote impulse purchases are the ones able to create incremental sales and then turn those impulse shoppers into regular customers,” said Sharma. “The key is to remind customers of Foodservice offerings at points of interruption such as at the pump, near store entry or along the path to checkout. Then, make sure your store looks clean and appealing to help trigger the purchase after a shopper is persuaded to browse your Foodservice area.”
To close the presentation, Sharma reiterated the need for continuous innovation to build and maintain a successful Foodservice program. Convenience stores must continue to evaluate and benchmark their program in relation to the industry, develop Foodservice in context of their overall retail strategy and continuously monitor performance along key metrics to rapidly adjust strategy and execution.
About the CSI MegaStudy
The CSI MegaStudy is powered by VideoMining’s ShopperImpact Platform, which combines its proprietary IoT sensing device called OmniSensR with patented machine learning and AI technologies to anonymously track detailed in-store behavior and apply powerful prescriptive analytics for a variety of applications. Using a nationwide panel of representative stores across multiple retailers, the MegaStudy provides a channel-wide perspective benchmarking across geographic and demographic clusters.
VideoMining is the leader of in-store behavior analytics for Consumer Packaged Goods (CPG) manufacturers and retailers. VideoMining’s deep analytics platform utilizes a patented suite of sensing technologies to capture in-depth shopper behavior data. These previously unmeasured insights are then integrated with multiple other data sources such as transaction, planograms, product mapping, loyalty and promotions to fuel comprehensive solutions for optimizing CPG Retail.
VideoMining’s client base includes a majority of the top 50 CPG retailers and manufacturers, who gain unprecedented visibility into in-store shopper behavior enabling them to get the most value from their investments in Shopper Marketing, Category Management and Brand Innovation.