Digital route

to market
Realize the urgency to
transform your RTM digitally

June 2022
Current Complex outlet landscape
Outside the classical modern trade channel, the
challenges fragmented traditional trade (including Instant
Consumption and HoReCa) landscape can be complex
and possess unique characteristics.

Evolving consumer archetypes

Varied consumption habits, maturity of taste, cross-
channel behavior and changing buying decisions
emphasize the need for multi-paced approaches.

Poor talent pool

Effective selection, training and deployment of the
sales force’s skillset and talent are needed to maximize
customer experience and sales.

Data access and utilization

The historical lack of data visibility makes it important
to invest in ways to capture the “right data” and
transform them into insights.

Copyright © 2022 Accenture. All rights reserved. 2

Why now?
An effective, efficient and To achieve these, certain
agile RTM is more important organizational implications are
now than ever before. Such an necessary. CPG companies need to
RTM can enable CPG break down functional silos, shift
companies to increase their
toward digital capabilities and skills
net sales while managing their
cost-to-serve without major and set the right incentive structure
changes in R&D, products for the workforce and partners.
and manufacturing.
By combining physical and digital
RTM tools, companies can increase
numeric and weighted distribution
while controlling cost-to-serve. Not
only will companies be able to reach
outlets better, but this physical and
digital RTM combination will also
lead to:

• More direct access to the B2B and

key decision-makers on the
customer side and, hence, an
improved and better contact and
service strategy
• Improved and more personalized
product, service and promotion
offering
• Increased loyalty among
customers and consumers

Copyright © 2022 Accenture. All rights reserved. 3

Treat RTM as a strategic vehicle –
A step change to support growth while
managing cost-to-serve.

Think holistically and focus on

E2E customer and consumer experience

1
Go deep, go operational and look at
true enhanced customer and consumer
segmentation, occasion, ecosystem,

2 drop sizes, routing and channels

Break down functional silos and define

a combined cross-functional team

3
Rethink performance, metrics and
incentives for your sales and marketing
organization as well as your partners

4
Copyright © 2022 Accenture. All rights reserved. 4
 1 Think
holistically

Now and in the future, CPG companies must

move closer to consumers not only by offering
an experience and enabling direct selling but
also by understanding the customer better and
the Point of Sale the consumer frequents.
The CPG player needs to understand the Moving closer to the end-consumer makes
true occasion of the consumer in and sense if the CPG company can increase its
around the Point of Sale (PoS)/customer. awareness in the eye of the end-consumer.
In addition, a few key questions should If the CPG company can understand the
be addressed before deciding on an consumer and their occasion better and
improved B2B experience, going B2C or offer more personalized products and
combining both. services as a result, the end effect is that
net sales across all channels will increase.
• How do we combine digital and physical However, the CPG company needs to
channels? consider the potential cannibalization
impact on customers and evaluate the net-
• How do we ensure seamless and exciting net effect.
omnichannel experience?
• What are the benefits of going directly to
the end-consumer?
− Will there be enough uptake by going
to the end-consumer to compensate
the loss on the retailer side?
− How can we compensate the retailer
for this?
− What is the digital maturity of the end-
consumers in this specific market?
− Are we creating more noise than
necessary?
• How do we apply technology in the best
possible manner to support experience,
performance and seamless integration?
• How do we leverage the strength of
ecosystem partners, and how do we
manage them?
• What internal and ecosystem partner
(e.g., merchandisers, distributors)
capabilities are necessary, and where do
they need to be upgraded?

Copyright © 2022 Accenture. All rights reserved. 5

 2 Go deep,
go operational

Digital channels are a key enabler to provide

access to the consumer and connect better to the
PoS while driving penetration and numeric and
weighted distribution – leading to higher net sales.

Digital tools
A fast-evolving set of digital tools exist At the same time, all these tools can
nowadays to combine digital with physical establish direct connectivity with the PoS
visits. The cost of these digital tools is and capture data that can be used to
considerably lower than the cost of a improve the profiling of both
physical visit by a sales rep or the sales reps customers and consumers.
of distributors.

1. Retailer app 2. Chat bot 3. IVR 4. Tele sales 5. Field sales

Empower outlets to The new age digital Easy to use IVR to Run tele campaigns Shift focus from
order through their medium, order order for non- to book orders order booking,
smartphones using popular chat smartphone users through phone become the sales
engines enabler from sales
agent
Level 1 menu
Press 1 for new order
Press 2 for status
of existing order
Press 3 to talk to agent

Level 2 menu
Press 1 for SKU 1
Press 2 for SKU 2
Press 3 for SKU 3

Source: Accenture Analysis 2022 Copyright © 2022 Accenture. All rights reserved. 6
 2

Long-tail problem
As CPG companies improve their outlet This generates lost revenue potential, given
reach, they are faced with the long-tail that the company neither services the
problem, which impacts profitability. By outlets properly to establish long-lasting
combining the physical and digital tools, relationships nor knows the outlets and
the contact and service strategy can be consumers sufficiently. In addition, the true
redefined, improved and tailored across all potential can therefore not be properly
segments, which leads to increased net estimated. However, the CPG company
sales in the end. should not leave segments B and C
completely out of sight and have little
Looking at typical contact service strategy knowledge of the PoS and of whoever buys
and illustrative segmentation of customers in them. In the end, they still pose a
of a CPG company in a specific region, we substantial business potential. This will
see that while PoS engagement in segment naturally vary depending on market
A brings the biggest value, this is reduced archetype and the split between modern
in segments B and C to 2 or 1 per month, and fragmented/traditional trade.
respectively, given that drop sizes (sell-in)
do not cover more of the cost to sell
and serve.

Sales
revenue
80% of the outlets will
contribute to only 20% of
the total sales.
Retail outlets

Sales
revenue Using Field Sales for the
long tail (Category C) will
dent the profitability due to
low order values.
Sales cost as a % of revenue

Category A outlet Category B outlet Category C outlet

Category A Category B Category C

Engagement

4x 2x 1x
As-is

Week 1 Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat

Week 2 Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat

Week 3 Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat

Week 4 Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat

Lower engagement = Field sales is focused on Untapped sales in category C

lower sales; stock-outs replenishment vs. sales outlets due to low order value

Source: Accenture Analysis 2022 Copyright © 2022 Accenture. All rights reserved. 7
 2

Increased retailer engagement through omnichannel in RTM

Engagement across all segments can be
increased and optimized. Depending on the
segment, the increase can be up to 3 to 4
times while controlling cost-to-serve.
However, there should be an evaluation on
how much of an engagement is needed
and in what form and combination is the
right one; otherwise, an “over-servicing”
could be done. In addition, the connectivity
through digital tools enables a much better
profiling and segmentation of the
customer’s PoS.

Hence, if we summarize, digital RTM tools

will have strong benefits across all channels
through and leading to:

• Improved contact and service strategy

with direct access and communication to
customers and consumers, enabling
improved profiling, product and service
offering and driving net sales
• Better understanding of customers and
consumers
• Control of cost-to-serve
• Improved ability to offer targeted trade
promotions (higher ROI, higher net uplift
and net sales)

Category A Category B Category C

Multi-Channel
Engagement

10x 8x 6x
Week 1 Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat

Week 2 Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat

Week 3 Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat

Week 4 Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat Mon Tue Wed Thu Fri Sat

Self-serve channels
Tele sales Field sales

Increase Lower cost

3–4x increased in revenue of order Low-cost
engagement channel adoption

Source: Accenture Analysis 2022 Copyright © 2022 Accenture. All rights reserved. 8
 3 Break down
functional silos

To respond to the new complex market conditions

and achieve best effectiveness of the digitalization,
CPG leaders should rethink their organization
landscape and commercial functions and consider
working in multidisciplinary teams as the borders
are blurring in the digital world.
Without implementing and scaling sales Furthermore, we see many companies
technology solutions (e.g., an enterprise following this principle of driving an E2E
sales platform), the current sales ownership across the whole organization
workforce will not be able to satisfy within a digital transformation (e.g., CoE for
internal and external customers digital marketplaces where business and IT
anymore. This challenges the current work closely together). They started to take
roles within the organization, such as the end-to-end responsibility for digital
role of the Customer Manager (KAM), a products, focusing on value, speed, agility
role that looks the same today in many and customer needs, and create value for
sales organizations as it did in the past business and consumers. Having one
century. dedicated unit that is end-to-end
accountable for continuous value delivery
Leaders are looking to transform this role along and across the different consumer
using automation and analytics to and customer channels not only increases
streamline non-value-adding activities, synergies but also minimizes handovers
freeing up time to focus on transforming and dependencies to/from other teams.
the category experience and driving Some CPG leaders even install a dedicated
new ways to create joint value for RTM director next to the sales organization
their customers. in the specific regions and/or globally to
enable a pure customer- and consumer-
centric orientation and 360° view on
In terms of remodeling their organizational
customer and consumer data, both online
structure toward digital RTM, CPG
and offline. Once the specific capabilities
companies often progress through a set of
are built up and the transformation process
phases until they reach the point where
is completed, we observe an integration of
RTM responsibility is fully distributed and
the responsibilities across all divisions of
embedded. Most traditional CPGs started
the organization, especially into the sales
their journey by concentrating all
organization, while ensuring a continuous
commercial-related responsibilities (e.g.,
collaboration between technology and
eCommerce, online merchandising, online
the business focusing on continuous
content) under one business unit. This
value delivery.
means shared responsibilities of sales and
operations, customer- and consumer-
facing business areas distributed across
departments and marketing
responsibilities divided between digital
and non-digital activities.
Copyright © 2022 Accenture. All rights reserved. 9
 4 Rethink performance,
metrics and incentives

The transformation, however, does not stop with

restructuring the organization, its functions and
capabilities. Moreover, the organization must have
the right mechanism in place to measure success in
an effective and balanced way.
Performance, metrics and incentives

This requires a clear definition and To increase acceptance of being

alignment within and across functions collaborative across the organization and
and markets on operational KPIs and drive digital transformation, an appropriate
performance (e.g., traffic generation financial incentive structure is
and visit rate, customer lifetime value, recommended in terms of commission,
conversion rate, retention rate, SKU, bonus, etc. This will drive a more
cost-to-serve). collaborative organization where sharing
insights is encouraged.
It is important to drive transparency and
consistency of the identified measures to Part of this exercise is also to identify key
enable comparison and, more importantly, value levers. We saw CPGs generating huge
incentivize the workforce to work toward benefits from their digital RTM
common goals. While the Sales transformation through detailed knowledge
organization, for example, is rather short- of customer and consumer (360°) –
term oriented and focuses on its own silo delivering at the best service level;
based on its compensation structure, it increasing coverage, penetration, numeric
lacks the understanding of a big digital RTM and weighted distribution; leveraging the
transformation where the effects on the ecosystem; using digital tools and channels;
P&L are rather long-term. Hence, there is and transforming the field force with clear
little incentive for the Sales organization as roles and increased productive time for
of now. salespeople.

KPI Description
Sales target achievement Actual sales volume/volume target by sales rep.
Customer volume growth Customer actual volume/volume period n-1
SKU sales target achievement Actual SKU volumes by sales rep.
Sales SKU sales volume per customer SKU sales volume per customer by sales reps.
# of SKU per customer # of SKUs purchased in the last month by a customer
Out of stock at the routes Numeric and weighted OOS by route
Outlet Cooler pollution % of pollution of coolers in route/area
activation Share of visible inventory (SOVI) % of visible inventory for the category
Average stock days at the outlet Average days of stock per outlet in a route
Average travelling time Average time travelling between point of sales in a route
Strike rate Total visits/visits with sales
Efficiency # POS visited per day # of visits done in the day

Source: Accenture Analysis 2022 Copyright © 2022 Accenture. All rights reserved. 10
 4

When bringing tools and platform together the results can be

significant
Overall, we see CPGs that were able to
realize 10–14% top-line growth and up to
50% cost-to-serve and cost-to-sell
reduction (e.g., $850 million in revenue and
$20 million in OPEX savings in GTM for a
global beverage company) when
transforming their RTM. This includes
increases in numeric and weighted
distribution, frequency and number of visits
per day (e.g., up to 20–25%), strike rate (e.g.,
up to 9–32%) and increases in drop sizes in
some areas. With an optimized contact
strategy, the travel time can be reduced by
32%, and with better technology and focus
on important visits, the admin time can be
reduced by 44%. This frees up capacity for
value-adding capabilities such as
developing and hunting.

Improvement
Levers Impact areas range

Territory • Prioritized new and grey outlet lists

varies
coverage • Prioritized list across all outlet types (overall outlet value)

Outlet • Optimised outlet visit schedule including timing of visit within month
+8–10%
coverage (increases and decreases in number of visits over the year)

Portfolio/ • Recommended portfolio/assortment mix by store

+5–7%
assortment • Recommend stock level according to assortment mix by store
Sell in –
revenue
uplift • Recommended order quantities by store
Order
• Recommended minimum inventory by store +2–5%
quantity
• Recommended promotion execution plan

Instore - • Recommended in-store equipment plan (Fridge, racks, storage devices,

varies
equipment lighting, etc. with usage)

Campaigns/ • Prioritised stores for new product introduction/testing

+15–20%
promotions • Prioritised segment specific promotions (with sensitivity)

Salesforce • Optimised dynamic daily route maps for each salesperson

-5–10%
effectiveness • Optimised timing in each store

Cost Merchandising • Optimised store planograms

-2–5%
reduction elements • Optimised store merchandising

• Optimised SKU stock levels in supply chain

Supply
• Optimised delivery route -10–15%
chain
• Optimised vehicle type for delivery for route

Source: Accenture Analysis 2022 Copyright © 2022 Accenture. All rights reserved. 11
So where • Develop commercial segmentation strategies
estimating their impact

should CPG • Improve classification of new customers using a

data-driven approach

companies • Enhance resource allocation to minimize costs

(establishing the right number of execution levers
start? We for each outlet)
• Maximize value of product/service to customers by
summarize optimizing their assortment (bundling,
segmentation)
the key • Tap hidden assets to commercialize

actions that • Quantify market potential and priorities

• Create new revenue growth streams
you can • Optimize price and profit using analytics to shift

take below. visits to the most valuable customers

• Focus sales and negotiating talent on the right
markets and opportunities
• Align sales incentives with behaviors and outcomes
• Set intelligent sales targets and quotas
• Put the commercial operating model in place
• Effectively communicate the sales plan
• Prepare the sales force to execute (e.g., account
workouts, sales enablement, negotiations training)
• Establish governance and monitoring

Copyright © 2022 Accenture. All rights reserved. 12

The authors
David Holtmann
Managing Director
Consumer Goods & Services
Accenture Strategy
[email protected]

Patricia Duerr
Business Strategy Consultant
Consumer Goods & Services
Accenture Strategy
[email protected]

Anne K. Kotzorek
Managing Director
Talent & Organization
Accenture Strategy & Consulting
[email protected]

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