CPG (Consumer Packaged Goods) syndicated data and consumer panel data are two key types of data used for understanding consumer behavior, market trends, and product performance, but they differ in how they are collected, what they focus on, and how they are used.
In short, Syndicated data tell you the Where, When, and What. Consumer Panel data tells you the Why. For example, imagine that your company is declining in sales and your leadership wants to know how to address the problem. Syndicated data could tell you how much you are declining, when the decline started, and in which retailers the decline is the most pronounced. Consumer Panel data can tell you which brands buyers are shifting to instead of yours (and a lot more – read our article that’s all about Consumer Panel here!).
- Data Source:
- Syndicated Data: This data is collected from a wide variety of retail outlets (supermarkets, drugstores, online platforms, etc.) and is aggregated by syndicated data providers (that’s us!). These companies gather data on product sales, pricing, promotions, and market share across multiple channels and geographies.
- Consumer Panel Data: This data comes from a select group of individual consumers who voluntarily track their purchasing behavior and share information about their buying habits. Panelists typically record their purchases using barcode scanners, mobile apps, or online surveys. Our data comes from the National Consumer Panel.
- Focus of Data:
- Syndicated Data: Focuses on aggregate sales and performance metrics at the product, category, and retailer levels. It provides a high-level view of how products are performing in the market, including sales trends, volume, pricing, distribution, and promotional effectiveness. This data is often used for competitive analysis, market share insights, and reporting.
- Consumer Panel Data: Focuses on consumer-level behaviors and attitudes. It tracks what individual consumers are purchasing, their brand preferences, frequency of purchase, and sometimes their household demographics. Consumer panel data offers insights into customer motivations, loyalty, and product usage.
- Granularity:
- Syndicated Data: Tends to be broader and more aggregated, often representing sales and trends at the national, regional and store levels. It offers insight into overall market trends but doesn’t dive deeply into the specifics of individual consumer choices.
- Consumer Panel Data: Provides much more granular, individual-level data. It offers insights into how specific households or people behave over time, making it valuable for understanding specific consumer habits, brand loyalty, and purchasing patterns.
- Sampling Method:
- Syndicated Data: Typically based on a large-scale sample of retail transactions, using point-of-sale (POS) data and scanning technologies across numerous retailers. This data comes from the sum total of the cash register, not the individuals shopping at the store.
- Consumer Panel Data: Collected from a panel of selected individuals who have agreed to track and report their purchases over a period of time. The sample is smaller, but it is usually carefully chosen to represent different demographics, regions, and purchasing behaviors.
- Time Frame:
- Syndicated Data: Updated on a monthly basis, providing more immediate and up-to-date insights into market trends and product performance.
- Consumer Panel Data: Typically collected over a longer period, which allows for longitudinal analysis of consumer behavior over time, but may not provide real-time data.
- Use Cases:
- Syndicated Data: Widely used by manufacturers, retailers, and market researchers to analyze the overall market, monitor product sales, understand pricing strategies, assess promotional effectiveness, and track competitive landscape.
- Consumer Panel Data: Used to gain deeper insights into consumer preferences, decision-making processes, and behavior. It can be used for brand tracking, segmentation, advertising effectiveness, and understanding consumer sentiment toward new products or categories.
- Accuracy of Consumer Behavior:
- Syndicated Data: While it is highly accurate in terms of sales performance and market trends (the “Where, What, and When”), it does not always capture the “Why” behind consumer decisions, such as motivations or attitudes.
- Consumer Panel Data: Provides more insights into the “Why” behind purchasing decisions, as it tracks individual-level behavior and can gather data on consumer attitudes, motivations, and product usage.
Summary:
- Syndicated Data: Focuses on aggregate product performance, retail trends, and market-wide insights.
- Consumer Panel Data: Focuses on detailed consumer behavior, individual purchasing patterns, and deeper insights into consumer preferences.
Both types of data are complementary and often used together to provide a full picture of the market and consumer behavior.