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Lots of ink has been spilled and energy expended by industry executives, the media, and consultants discussing the importance of understanding the consumer. Deciphering consumer behavior is the lifeblood of the retailer and manufacturer, and critical to growing the business. The following quote from a retailer I spoke to recently nicely summarizes this environment: "If a manufacturer doesn't have consumer insights to bring me, they might as well e-mail me their deal sheets."

Given this perspective, one would think that consumer insights are plentiful. Yet that hardly seems to be the case. Why? It's not lack of information but rather a need to change the orientation and process of both parties. The challenge is to get the right people, both within and across retailers and manufacturers, to meet and unlock the insights both already have available.

Before detailing ways to address this issue, let's discuss one type of consumer research vital to securing insights.

One of the most important types of insights is to understand consumers' hierarchy of needs, segment the category, and perform the decision-making process. Edgewood's experience is that this consumer decision hierarchy (CDH) can vary tremendously by category, class of trade, or even customer.

One brief example is work we recently did in the large, profitable supplements segment of the vitamins, minerals, and supplements category, one of the pillars of the OTC business. Retailers are seeking ways to capitalize on this dynamic segment at the same time manufacturers are bringing new items to market.

The CDH research segmented products into two groups: single ingredients (e.g., gingko, echinacea) and combination formulas (e.g., combinations of vitamins and supplements for specific needs). What was most interesting was that the research showed consumers view and shop these sub-segments in quite different ways. Single ingredients are purchased by type of ingredient while combination formulas are bought by brand.

The implication was quite important when it came to assortment and shelving. Variety duplication analysis needs to be done across brands within single ingredients but within brand for combination formulas. For shelving, place single ingredients alphabetically and group combination formulas by brand. As case in point, these insights can help the retailer improve shopability of the section and enhance the image of the store with consumers.

All right then, all in favor of utilizing consumer insights raise their hands and say "aye." Obviously the ayes have it. But do they? Often both manufacturer and retailer have access to the information but gaps remain in the communication and synergistic impact of sharing it. In an industry cited as a leader in connection to consumers, how can we share and utilize consumer insights more frequently? Here are some thoughts.

1. Unlock the insights that are "hidden" internally. Traditional roles within the organization need to evolve. For example, on the manufacturer side, marketing has historically set the budget and agendas of marketing research. Although sales is not a primary customer, we need to better champion its needs. Involve sales initially so that small, relatively inexpensive but critical enhancements to the research can be incorporated. On the back end, communicate consumer insights from many more studies to the field.

2. Get the right people to meet and talk. The industry has come a long way in expanding the number of communication points. The historical model of a manufacturer salesperson being the single contact with a retailer buyer is disappearing, but we still have a ways to go.

In the age of collaborative planning and forecasting, contacts between manufacturer and retailer must expand beyond just production planning, customer service, and logistics. For retailers, broaden the audience to include merchandisers, store managers, and even foodservice. Manufacturers should involve marketing research, finance, and R&D. In a collaborative setting, functional experts can provide unique perspectives to cooperatively develop critical insights.

3. Refocus technology as an enabler to understanding the consumer. Data at the store and SKU level is very powerful, but it is threatening to drown us. That's because in many instances technology is being used for data mining and template creation rather than incorporating and leveraging consumer insights.

Here are two suggestions to address this difficult challenge. First, keep the objective in mind, as well as what the end users need and can reasonably handle, rather than having technology drive the process. Second, leverage technology as an enabler to acquire and manage data, not as a replacement for thought and strategic understanding of the business.

4. Make gaining consumer insights a priority. By definition, consumer insights are hard to come by. If they were easy, everyone would have them. Commitment is more than budgeting dollars or adding more people. Rather, it is a cultural shift and reorientation for both retailer and manufacturer. For retailers, it means involving store managers and retail personnel in the planning process to gain their perspective and insight. For manufacturers, it translates to involving sales in the strategic planning process and not just planning at the customer level.

All parties agree on the need to increase the amount and role of consumer insights in the industry. The challenges to address them are well within our grasp, cultural and historical as opposed to structural and fundamental. With renewed commitment and focus, the consumer packaged goods industry can continue to be seen as thought leaders not only within the grocery industry but also within the broader business world. In other words, together we can truly put the "consumer" back in the consumer packaged goods industry.

Marty Baum is a partner at Edgewood Consulting, a marketing and sales consulting and software company in Morris Plains, N.J.