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An Analytics Approach to Understanding Your Wholesale Customers

How Data Analytics Can Improve Your Brewery's Wholesale Strategy

The craft brewing landscape has become intensely competitive, with an increasing number of breweries vying for a share of the wholesale market. The key to staying afloat, and indeed thriving in this bustling ecosystem, lies in understanding your wholesale customer base.
In this post, we’ll describe and give examples to the transformative power of a data-driven approach in uncovering your best partners that you should try to grow with and finding opportunities to improve certain segments.

Segmenting Your Customers
Your wholesale customers are not a monolith. They differ in their needs, order volumes, geographic locations, and operational sizes. Understanding these attributes through data analytics allows for effective segmentation of your customer base, enabling personalized marketing and sales approaches.

In this dashboard example we are segmenting by:
Type – Customer Segment
Region – Geographic Location
Size – Total Sales
Profitability – Gross Margin %
Recency – Days Since Last Order
Frequency – Avg Days Between Orders
Age – Days Since First Order
Variety – Number of Beers Ordered

Once each customer is classified in each segment, we can summarize how much of our customer base and volume fall into each attribute.

Note: This dashboard is highly interactive so we can quickly get to different groupings of customers based on their attributes

Now that we have our data organized and have some insights, lets find good data-driven strategies and actions!

Grow, grow, grow!
Do we have customers who are profitable, local (easy to service), and order frequently (help us stay steady and predictable)? Let’s do whatever we can to increase our sales with them!

Change Behavior
Maybe we have some customers that have some good characteristics, but we can move them towards being an ‘ideal’ with some tweaks. Maybe we can push them to a more regular ordering pattern, or we look to change some of their purchases to a more profitable beer, etc.

Highlight Newbies
Great, we got a new customer! Let’s make sure we tag and highlight them to start a strong relationship and hopefully grow them to be a great long-term customer down the road!

Drop ‘em!
Finally, we should look to get rid of some customers that don’t have the characteristics we like. If you have some that are small, non-local, inconsistent, and not profitable … they got to go!

To wrap up, in the dynamic and fiercely competitive world of craft brewing, understanding your wholesale customer population using data analytics is not just beneficial; it's vital for success. Breweries that leverage data can build more effective selling strategies, enhance customer satisfaction and loyalty, and swiftly adapt to market changes, thereby directing more volume to their high-profit, frequent ordering, long-term customers.

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