Amer Sports Oyj : Consumer data to guide production, marketing and sales

Amer Sports is developing its business processes to make them more consumer-focused and user-driven. Emphasis is increasingly placed upon analytics and monitoring of user information. The new data platform and operational concept was tested on Suunto products during 2017. The results were good, and this year the application of this data is being extended to other Amer Sports brands.

The development of the new data platform begun in 2015, says Marko Orenius, Director, Data Analytics and Business Intelligence.

The aim was to create a system where detailed client data helps drive production, marketing and sales.

'Consumers leave digital footprints in various channels. They search for information about products before they make the purchase decision, buy products and write reviews about them on the internet. These digital footprints paint a picture on how consumers behave in general. This represents the core of customer data on which, for example, Amazon and Facebook base their business models.'

When enough client data has been gathered and correctly interpreted, it can be harnessed to serve and enhance the business. It can be used, for example, to create detailed demand forecasts to optimally scale production volumes.

'The better the company knows how to utilize this data, the more efficient its operations will be', Mr Orenius concludes.

Adapting data to various purposes

The first version of the new data platform was completed during 2017. The proof of concept was first applied to Suunto. The collection and processing of genuine consumer and sales data was commenced in the same year.

'We showed that refined data could be adapted to many uses. We found out the demand for different product variants and the most effective sales channels thanks to consumer monitoring based on data pathways. This data was used for planning production. We were able to scan the whole chain from production to retail, and finally onto consumers,' Orenius explains.

Everybody wins

The use of the new data platform will be expanded in 2018.

'We will use the work we do for Suunto as a model for other brands, too, but will adopt slightly different angles. The system will be maximally automated and user behavior will be analyzed in even greater detail.'

Consumer data is readily available from brand stores as well as our own online stores. Dealers are also an important source of information.

'In order to stay as close to the consumer as possible we need to be able to operate via our retail partners and find models of cooperation where everyone wins -including the consumer. When a store registers a sale, this data needs to be processed and made available to use.'

Sports Tracker and Suunto devices that are connected to the internet provide unique data about users' exercise habits.

'When Suunto wearables are connected to the internet, they tell us what sport they have been used for and, for example, what distance has been run or cycled. A mobile device, on the other hand, is the company's business card in the consumer's pocket. It enables contacting the consumers and providing them, for example, with recommendations for exercise.'

Understanding consumer needs

In broad terms, Amer Sports' new data platform and the associated data collection and processing are an essential part of the company's consumer-focused thinking.

'These days, brands can influence the consumer only on rare occasions due to the vast array of choices available to the consumer', Mr Orenius emphasizes.

Brands compete for the attention of consumers. The most successful brands are usually those that base their business model on understanding consumer needs.

'The basis must be a relationship with the customer extending over several years. The foundation must be a lasting one, since one of the key benchmarks in the future for calculating the value of a company will be the consumer lifetime value, in other words, how often and how much consumers buy during their relationship with us.'

Confidential dialogue

Some consumer data is stored in Amer Sports' databases automatically, other data requires active involvement by the consumer. Whichever the case may be, collection and use of such data must always be in compliance with law and based on trust. This process needs, therefore, to be handled with care, always ensuring that the consumer's trust is maintained.

'We must be worthy of the consumer's trust. We must use continuous dialogue to identify the moments when we can offer the consumer something of value, such as insurance, extended warranty or information about how to get more out of our products. This might encourage the consumer to share us data that is relevant to us. Everything is built on dialogue - we must always be able to provide motive and value for consumer engagement.'