By Mark LaBorne, Acosta SVP, Order to Cash Solutions

Who doesn’t love a good bargain? For many consumers, finding a great deal is not just a fun hobby but a necessity in today’s inflationary market. Shoppers are spending more time searching for deals. As a result, many brands are scrutinizing their budgets to see where they can drive efficiencies to invest more dollars into their trade promotion strategy.

One critical area that brands often overlook and don’t measure? Your order to cash.

Some may think of the order to cash as a necessary evil. Promotional contract generation, order and claims management, trade fund reconciliation—this isn’t the most glamorous work. With each brick-and-mortar and online retailer having its preferred processes, timelines, and systems to navigate, sales teams spend an excruciating amount of time performing these administrative back office functions.

That’s why outsourcing order to cash management to a trusted partner can be a game-changer for your brand. But this is only an effective strategy if you choose a partner with the end-to-end functional expertise, national reach, and cutting-edge technology to save you time and money and amplify your relationships with retailers.

A strong order to cash partner will measure their effectiveness against the KPIs that matter to you and the retailers you work with. Imagine:

• Order automation rate of 82%, with non-automated orders processed within 24 hours (not to exceed client lead time)
• 80% of claims are processed with no sales team intervention.
• Deductions are touched within five days and processed with the client in less than 30 days. Customer Check Requests are touched within 2 days and processed within the customer’s timeline.
• Presenting promotional contracts and price changes to retailers within their required timeline.

With the right partner, you’ll realize ROI through reductions in working capital, infrastructure, benefits, equipment, technology, and training. That means your sales team can confidently spend more time selling and growing revenue.

Acosta has a proven track record of success. Our Order to Cash team is rooted in our proprietary technology, Acosta Relay, which acts as an extension of your sales team by efficiently processing orders and claims (deductions and check requests) for promotional activity. We process 1.5 million claims and 1 million orders annually, and manage $3.2 billion trade dollars utilizing Acosta Relay.

Our clients have seen impressive results through our standardized Acosta Relay process.

• We helped a client reduce order processing errors at Walmart and Sam’s Club by using clean data and 80% order automation.

We’ve reduced another CPG client’s greater than 60-day deduction balance by 31%, going from 68% to 99%.

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Our technology streamlines tasks like promotional contract generation, order, and claims processing through automation. Acosta Relay utilizes a vast library of over 1,250 individual brand and retailer SOPs to ensure order and claims processing is done based on individual brand and retailer requirements. Plus, the system integrates with leading business service technologies, ensuring data security and pulling claims data from existing brand and retailer platforms.

We strive to measure what matters so our clients earn the greatest return on their investment. We’re not just a vendor – we’re an extension of your team. And don’t just take our word for it:

“Our partnership with Acosta began 17 years ago with a need to manage the retail business in a more structured and routine manner. Over the years, they have proved to be a valuable resource and have been instrumental in helping us achieve our joint performance goals. Together we achieved process simplification utilizing upload automation of daily files and robotics, valuable insights and testing of a new Trade Promotions Management system, continuous updates of pricing rules and controls to avoid misbilling, and robust financial roundtables to review performance and opportunities for improvement.”

Group Director
Deductions from Revenue, Coca-Cola North America Operating Unit Finance

Two in three U.S. households own a pet, creating valuable opportunity for brands and retailers selling pet food, treats, and health care products

Acosta Group released a new study conducted with its proprietary Shopper Community highlighting pet parents’ shopping habits. With two in three U.S. households owning at least one dog or cat, shopping for food, treats, and health care needs for pets has become a significant part of household budgets. According to the study’s findings, 96% of pet parents consider their pets part of the family, and 86% are willing to adjust their budgets to afford their pets’ expenses, reflecting a valuable opportunity for retailers and brands to prioritize this audience.

“Our study validates the deep bonds people establish with their pets as true members of their families. These connections drive informed decisions on the ongoing purchases made throughout their pets’ lives,” said Kathy Risch, SVP of Thought Leadership and Shopper Insights, Acosta Group.

Pet food dietary choices

Acosta Group’s study found that when thinking about food for their dogs and cats, 42% prioritize high-protein content, closely followed by joint care at 40% and probiotics (gut health) at 38%. Additionally, 36% of pet parents are interested in fresh, minimally processed foods and supplements. This data mirrors shoppers’ personal health interests: 41% are thinking about high-protein foods, 41% are considering freshness, and 41% are considering probiotics.

“We find it highly informative that when considering pet food, pet parents tend to look for many of the same health benefits that they are seeking in their own food. This further confirms the fact that pet parents are prioritizing the health and well-being of their dogs and cats when making these purchase decisions,” said Lisa Goff, VP of Acosta’s pet division.

Product research and brand loyalty

While most pet parents get pet food and health information online, vets remain the most trusted source for information on their pets’ diets and health needs. Additionally, 52% of dog and cat owners primarily rely on online research to review ingredients, packaging, shopper reviews, and prices.

Brand loyalty is also key to pet purchasing decisions, with 57% of dog owners and 59% of cat owners selecting brands they’ve previously purchased. However, there is some impulse purchasing within the category, as 58% of millennials indicated that they are influenced by in-store promotions for pet products. Furthermore, 58% of dog owners buy treats on impulse.

According to Acosta Group data, most pet owners are turning to mass retailers, pet specialty stores, and online retailers for their pet care purchases.

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Pet expenses

Affordability is becoming more challenging, with 80% of pet parents believing that veterinarian care and insurance prices have been rising, as 82% noted the rise in the cost of medicine, vaccinations, and supplements. When asked, pet parents say they are willing to pay between $2,000 and $3,000 to care for their furry family members when they become unexpectedly ill. The study notes that as these care costs rise, pet insurance is gaining in popularity.

Insights for brands and retailers

Pet parents are doing their research online prior to any purchasing trips – reviewing ingredients, reading packaging, and making price comparisons. With this trend in mind, brands should highlight on-trend packaging that calls out fresh and natural ingredients or other health benefits. For retailers, it is important to create a truly seamless in-store and online experience to foster brand loyalty, educating associates as they also elevate successful digital experiences, create personalized marketing campaigns and develop informative social media content to drive social connections and engagement.

“These consumers are highly committed to making the right choices for their pets, prioritizing health over the cost of products,” explains Goff. “Pet parents are looking for trusted and educated resources, providing brands and retailers an important opportunity to strengthen that relationship and subsequently grow their business.”

Acosta Group’s Pet Ownership Shopper Insights Study was conducted from Jan. 11-17, 2024, with 1,137 primary household shoppers who own dogs and cats ages 18+. Respondents are part of the company’s proprietary Shopper Community.

87% of Grocery Store Shoppers Usually Purchase HBC and GM Products Outside Grocery Channel

Acosta Group has shared the results of its recent proprietary Shopper Community study on Health and Beauty Care (HBC) and General Merchandise (GM) sales in grocery. Every month, 114 million households are purchasing food and beverages at grocery stores, according to NIQ. The Acosta Group study reflects grocery shopper behaviors and perceptions, and outlines strategies to convert a percentage of consumers that are currently purchasing HBC and GM in other channels to shop for these items at grocery. “We identify the biggest challenges grocery retailers face in this study related to HBC and GM purchasing, and present solutions for how to reset shopper perceptions and expectations, addressing category opportunities, pricing, promotion, and product selection,” said Kathy Risch, SVP of Thought Leadership and Shopper Insights for Acosta Group.

Consumer Behaviors and Perceptions

Shoppers think of grocery stores as being just for food and beverage purchases. Nearly 70% of those surveyed say that they typically do not visit the general merchandise, household products, personal care, or health and beauty products aisles at their traditional grocery stores. Most of these shoppers are choosing mass merchandisers for their non-food and beverage products, with a smaller percentage purchasing these products online or at drug stores.

Top shopper considerations for HBC and GM purchases are price and selection. 47% of consumers surveyed say that they shop at their favorite retailer for the lowest everyday prices, while 45% say that it’s because their preferred retailer offers the selection of products they want to buy.

Conversely, 48% of these shoppers say that it’s because of their negative perceptions of price and promotions at grocery that they do not currently shop for these products frequently when making their food and beverage purchases.

Overcoming Challenges to Grow HBC & GM Sales at Grocery

HBC and GM shopping habits are admittedly hard to break. The Acosta Group study focuses on ways retailers can help to shift habits and capitalize on opportunities.

The study identifies the top ten ‘gateway categories’ that represent 85% of volume for HBC and 76% of volume for GM in grocery, per NIQ Panel data, including over-the-counter (OTC), nutrition, oral care, bath/shower, kitchen, outdoor recreation, batteries and others. “In addition to understanding the critical gateway categories for conversion, we’ve identified three key strategies to shift shopper behaviors and perceptions and drive expanded sales at grocery for HBC and GM,” said Shannon Hodock, SVP, Client Development, Acosta Group.

• Overcome perceptions of high prices and take credit for good prices: 80% of shoppers say that better prices and promotions could help grocers gain more business, and grocers have some good stories they need to tell on competitive pricing.
• Drive shopper impulse purchasing: While 90% of shoppers are planners when purchasing food, HBC and GM, 70% admit to buying products on impulse. Shoppers are interestingly far more open to impulse purchases in HBC and GM (27%) vs. food (8%). And if consumers see that an item is on sale, 1/3 are prompted to purchase before or during their shopping trip.
• Expand selection of HBC & GM products and brands: Customers want better variety, selection, and brand availability. Of note, national brands are the fastest path to conversion and trip growth, but 59% of retailers say that they will continue to prioritize private label.

Get on the Grocery List

“We believe grocery retailers have an exciting and expansive opportunity to capture and grow HBC and GM sales,” said Hodock. “Strategically, retailers need to create a targeted ‘get on the grocery list’ campaign for their shoppers, incorporating a holistic omnichannel strategy and a customized marketing plan as they tackle the three key challenges to overcome current perceptions and shopping habits.”

The promotional goal for grocery retailers should be to build their shoppers’ total basket at grocery, focusing on their key gateway categories for conversion. Implementation of simple promotions, such as discounts or temporary price reductions, buy one get one free (BOGOs), and loyalty/rewards programs will drive the greatest shopper interest. Customization of offer types, features, or displays, will help to drive the strongest results.

“Retailers will want to optimize their selections in HBC and GM merchandise, especially in the gateway categories where selection is highlighted as most important to shoppers,” said Hodock. “Harnessing the power of national brands can also assist in driving growth.”

Acosta Group’s Accelerating Growth of HBC & GM at Grocery Study was conducted from Sept. 1-7, 2023, with 1,017 primary household shoppers. Respondents are part of the company’s proprietary Shopper Community.

Acosta Group’s recent Clean Label Insights Study, conducted with its proprietary Shopper Community, provides brands and retailers with insights into the growing value shoppers place on clean labels in purchasing decisions and their attitudes on regulations pertaining to product ingredients, including the California Food Safety Act of 2023.

Clean label key attribute in shoppers’ purchasing decisions

Acosta Group’s deeper dive into clean label comes shortly after the release of its five retail predictions for 2024, one of which stated that consumers will prioritize what’s NOT in their products.

While all consumers may not be aware of recent regulatory legislation, 83% of shoppers are already knowledgeable about clean label products or have heard the term. Not officially defined, clean label products are described in the industry as having as few ingredients as possible, easy-to-recognize ingredients, and no artificial ingredients or synthetic chemicals.

“Our research further defines shopper priorities, preferences, and generational differences around clean label products,” said Kathy Risch, SVP, Thought Leadership and Shopper Insights, Acosta Group. “It’s clear that shoppers consider the absence of negatives, or an emphasis on what’s not in the products, to be the most important attribute in their clean label purchasing choices.”

When informed of the term, shoppers say clean label is important or very important for their purchasing decisions, with nearly 8 in 10 shoppers believing the products are better for them/their families and for the environment.

Shopper attitude is reflected at checkout, with clean label sales outperforming total store sales by a compound annual growth rate of 8% versus 6%, respectively, over four years, according to NIQ.

Without a doubt, legislation is accelerating the clean label trend as it forces significant changes to be made to foods that are consumed every day. Brands are reinventing the classics and taking steps to remove chemicals, but more can be done based on product changes that have occurred abroad. Specific to food and/or beverage, 55% of all shoppers believe more regulations are needed. That number increases to 72% for Gen Z and 62% for clean label buyers.

The biggest challenge to clean label purchases is cost, with some shoppers saying the products are “too expensive” or that they “don’t believe the hype.” When prices are higher, 40% of men are willing to pay for clean label products, compared to 28% of women, according to the recent study.

Clean label products skew younger overall

Over the past six months, most consumers knowledgeable about clean label purchased some of these products, led by plant-based milk, plant-based meat, and baby food sales. But clean label products skew younger overall, with Gen Z and Millennials stating that they expect to buy more of these products in the future, positioning them as clean label’s strongest advocates.

For younger consumers, clean label purchasing decisions are distinctly driven by health benefits for themselves and their families. In the case of Gen Z and Millennials, a higher value is placed on natural or Certified Organic products.

The Acosta Group study revealed that today, younger buyers are more likely to notice clean label brands or retailer-led clean label programs, both online and in-store, at the retailers they shop most frequently.

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Takeaways for retailers and brands

Importantly, 57% of shoppers trust retailers’ clean label efforts, with that number rising to 77% for households with kids, according to the Acosta Group study. In addition, 70% of all shoppers want retailers to help them understand clean label products.

We know that many consumers – especially younger consumers – care about clean label, support legislation, and trust retailers to offer them true clean label products as they also inform them about these products. This lays a solid foundation for ongoing sales growth, supported by savvy, integrated and strategic programming to continue to build consumer trust, allay cost concerns, and educate shoppers about these better-for-you products.

“It’s essential that clean label programming meets consumers as they shop seamlessly in-store and online, through digital and social media campaigns and retail media, in addition to packaging, signage and shelf management. Understanding the differences in key label attributes is valuable to building campaigns, and retailers should leverage AI to provide shoppers with recommended products based on the absence of ingredients, a differentiating attribute we know is key,” said Andrew Fleming, SVP, Natural, Acosta Group.

Shopper research was conducted Jan. 19-22, 2024, with 1,257 U.S. shoppers, members of the company’s proprietary Shopper Community. The Acosta Group Shopper Community is comprised of over 40,000 demographically diverse shoppers across the U.S. and is the company’s proprietary community for survey engagement.