By David Feinleib
Founder and CEO
Because we work with many of the largest CPG/FMCG suppliers, many of our partners preview their annual eCommerce business plans to us so our team has an opportunity to provide input. This year, one of the themes we’re seeing in the Walmart/Jet ecosystem is a broader incorporation of Walmart’s Customer Value Index (CVI), better known as “The 5 Its”, in annual business plans.
Coined by Marc Lore, former Jet.com CEO and now head of Walmart eCommerce, his CVI consist of five tenets for selling successfully online:
- Have It
- Find It
- Display It
- Price It
- Deliver It
Does Walmart have the products that shoppers are looking for?
Since we started working with Walmart, we’ve seen its online assortment grow from around 5 million items to upwards of 60 million. Lore’s eCommerce team has done an excellent job of ensuring the retailer carries every conceivable item shoppers want.
Content Analytics Item Setup capabilities help suppliers reduce item setup times from as long as three months (or more) to under three days.
Can shoppers find items easily on Walmart.com?
Discoverability is hugely important for all online retailers. When shoppers search for shampoo, if you’re a shampoo brand, you need to guarantee your products appear in the top search results.
Are the products displayed with content (pictures and descriptions) to help customers make an informed, confident decision?
Accurate product descriptions, images, and product attribute data, combined with rich media like video and enriched marketing content, provide shoppers with a comprehensive and informative product experience. With more than 80% of shoppers using their mobile phones in-store for research, “display it” doesn’t just affect the online shopping experience; it impacts the in-store shopping experience as well.
Content Analytics Content Management capabilities enable brands to store all online content in one place, publish fresh content on retailer websites, and verify that updated content is accurate and live.
Are products priced right?
While first-party (1P) sellers don’t control product pricing (only the retailer controls the price for items they sell directly), they need critical insight into how retailers price their products.
Content Analytics First Mover Report (FMR) monitors pricing for supplier products across key retailers, and documents which retailer is moving first to drive the price down. Our system then alerts suppliers in near real-time when another retailer is selling products at a still lower price, enabling the suppliers to work with their merchants/buyers to amend pricing strategies.
Are products delivered quickly and on-time?
Many suppliers are alarmed when they discover how many products go out of stock and can’t be delivered to consumers. Although supply chain systems should let them know about low inventory, there is often a disconnect between what’s available on a retailer’s website and what supply chain systems report. Example: 10 pallets of diapers were shipped to a retailer, but until those diapers are received and logged into the retailer’s systems, they don’t show up on the website as in-stock and for sale.
Content Analytics’ stock reports and alerts provide immediate visibility into what products are available online for in-store pickup.
Although Marc Lore first coined the “5 Its” strategy several years ago, our team is only recently seeing his CVI become fully integrated into major supplier’s annual strategies.
The good news is that suppliers can mix and match strategic components for two or more of the 5 Its with an aligning Content Analytics functionality to increase opportunities for online revenue.
Have questions about how to maximize your revenue on Walmart, Amazon, or other online retailers? Email me for more information.