They don’t just take up space.
plan-o-gram “POG”
a diagram or model that indicates the placement of retail products on shelves to maximize sales.
Embracing Change in Retail Space Management
In the early days of my career in retail space management, it was standard procedure to clear out the “outdated” data from our databases, particularly planograms and associated information older than 3-5 years. The prevailing belief in the retail world was that aging planograms held little value for creating updated versions. The only perceived utility for these antiquated schematics lay in retaining them as legal artifacts. These once-vital plans had outlived their usefulness and were deemed unnecessary for day-to-day analysis.
This practice persisted as Software as a Service (SaaS) and cloud providers advocated for purging planograms to keep storage costs low. Every space management database had its own purging process, ridding itself of older planograms often stored as flat files outside the database for future legal reference.
Fast forward to today, where the landscape has shifted with the ascent of Artificial Intelligence (AI) and Machine Learning (ML), altering our perspective on data and its intrinsic value. While big data has been in vogue for years, the space management industry had been slow to embrace the idea of accumulating Big Planogram Data in massive quantities. Until recently, most companies treated planograms as functional tools akin to paper maps rather than appreciating them as digital twins of in-store layouts.
Unleashing the Power of Planogram Wealth
My extensive experience in the space management industry has led me to reconsider how we perceive planogram data. Why extract valuable planogram data from a database? Housing planograms in a database facilitates easy analysis and interpretation, connecting this data with other sources to create something more intricate and compelling. I view planograms as a form of Retail CurrencyTM, something to be saved and invested. Planograms should work for us in the same way we expect our money to.
Accumulating planograms from diverse sources proves to be an effective method for gaining insights into customer shopping behaviors at the shelf.
This wealth of information allows us to tackle intriguing questions, such as:
- “In which placement does a product thrive the most?”
- “How much space does a product need to optimize visibility and turns?”
- “Which products sell best when grouped together?”
- “What’s the most efficient way to locate products for in-store pickup?”
- “How do I increase value with the least amount of disruption to my current physical set?”
These questions merely scratch the surface but underscore the value of collecting and harvesting data to enhance our decision-making capabilities.
Enabling Data Models
As we further embrace AI tools like ChatGPT, Microsoft 365 Copilot, and others, the more data that is being collected through these tools, will help train the modeling to produce better results. The same can be said for planogram data. The more planogram data that we can accumulate, the better we can train our space planning models to produce the best potential outcomes.
As retail planning software continues to innovate around generative AI, it will be critical to seed these platforms with an abundance of data that we have collected so that once space planning systems and users are ready to implement these new technologies, they have a running start. Enabling that running start by collecting and normalizing that data will go a long way to getting maximum value quicker.
Conversely, being fresh from NRF 2024, the number of times that the word “Real-o-gram” was referenced by solution providers was eye-opening. The image recognition technology to finally collect and generate the actual in-store merchandising on shelves is at a point where it’s going to offer tactical assistance for in store execution, but also play a foil to the planogram, in which we continue to use as our best merchandising prospect and researched plan. The real-o-gram data can now help feed the models being used to develop the best planogram! Very exciting evolution indeed.
Lessons from a System Implementor
Dealing with planogram data collection and retention is a common challenge for many organizations. This struggle often stems from the costs associated with licensing and storage, compounded by the complexity of managing data from diverse retailers and providers. Cantactix has dedicated efforts to simplify and enhance this process for our customers, offering a more accessible and efficient solution. There exists a superior approach to handle planograms and their associated data, involving a touch of innovation through tools and processes. Our involvement in ambitious projects has successfully unlocked the substantial potential inherent in this data.
Lesson 1: Establish or acquire a process for cleansing and normalizing planogram data. The difficulty in managing planograms lies in the risk of neglecting, corrupting, or allowing critical data to deteriorate within different formats. This can lead to extensive cleanup efforts to bring these valuable assets into a format conducive to contributing to our wealth management.
Lesson 2: Don’t let current system constraints dictate your destiny. If you view Big Planogram Data and planograms as Retail CurrencyTM, seek solutions that align with your strategic vision.
Lesson 3: Embrace change, as it is inevitable for growth and innovation. Fearlessly champion the drive for change in systems and processes within your organization. Evolution, combined with new technology, is crucial for our progress and success in this ever-evolving landscape.
An Exciting Future for Space Management
As we stand on the cusp of the Year of the Planogram (POG/MOD), the retail landscape is undergoing a transformative journey into the future of space management. The once-overlooked and often discarded planograms have evolved into the Retail Currency™ of today, becoming essential assets in our quest for data-driven success. No longer confined to mere diagrams, planograms are now digital twins with the power to unlock the secrets of customer behavior at the shelf. The shift towards accumulating Big Planogram Data signals a paradigm shift, where these intricate maps of in-store layouts are viewed as investments, ready to work for us in the same way we expect our money to.
As we embrace AI tools and witness the rise of technologies that support Real-o-grams, the excitement is palpable. The amalgamation of data, innovation, and disruptive technology is set to reshape how we produce and utilize planograms, promising a future where our strategies are as dynamic as the retail spaces they adorn. Welcome to a thrilling era where change is not just embraced but celebrated—a year where the Planogram takes center stage, shaping the very fabric of retail success in 2024 and beyond. Get ready for a revolution in the world of space management!
Planograms have become Retail CurrencyTM1
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