Guiding Principles
Our Basic 4 E Model
We began our careers at the time of Category Management. This process was keenly developed to assist retailers and CPG manufacturers to deal with the volumes of information and data being created by retail.
The first wave of information was generated by the Universal Product Code (UPC). This created the need to better format and present the volumes of market level information.
Second came the huge volumes of data generated by retailers customer relationship management programs (CRM).
Now the third wave of retail data is hitting us all with the information being available from various Location Services.
In order to manage any and all of this data the client needs to understand the basic 4E model.
The most fundamental element and the base of the model is understanding Execution. Without knowing what is actually happing at retail or in the store any and all information being calculated will not be solid.
By understanding the actual execution elements calculations can be made to understand how effective the merchandising elements are.
The basic output of effectiveness is a measure of 'lift'. How much more incremental volume and dollars did the program generate.
Without a clear view of what has been executed these computations will be done in error.
Once we know the Effectiveness of a program we can then proceed to calculate how Efficient the program was. What was the activities return on investment.
Finally the program can be measured as to how it impacted the retailers Equity. Did it attract new customer? Did it reinforce a current customers to stay with the retailer and repeat purchasing.
The 4E model has served us well since we developed this in 2004.
We would be more then happy to share.
