Retailer Pulse: Switching to Walmart Luminate: What to Know

Retailer Pulse:
Switching to Walmart Luminate: What to Know

As omni commerce has continued to evolve at a rapid pace, so has the need for brands and retailers to more effectively harness the vast amount of real-time data and metrics now available for decision-making. To that end, Walmart is in the process of rolling out a new data-sharing tool to all suppliers called Luminate. Luminate is a game-changing, data-sharing platform, designed to provide access to more actionable sales, consumer, and Omni data than ever before. Needless to say, this move has big implications for suppliers. There is a Charter version that has been launched with larger suppliers over the past year and a Basic “free” version is said to be rolling out by Thanksgiving 2023. By March 1, 2024, Walmart will remove access to the legacy Decision Support System (DSS) and suppliers will not be able to view any report, including historical. (This does not impact overall Retail Link access, just the DSS platform) Suppliers are being invited to subscribe to a free plan and have the option to upgrade to a fee-based service. What should you know? How can you most effectively prepare? And take advantage of the exciting opportunities Luminate presents? We sat down with Todd Matherly, MPG’s EVP-Walmart, for his perspective, keeping in mind this is a developing story.

What is Walmart Luminate?

Walmart Luminate is a new suite of data products that provide “unprecedented access to rich, aggregated customer insights that enable smarter, faster decision making.” It is a closed-loop data system offering up to real-time data and insights into channel performance, shopper behavior, and customer perception.

What is Luminate’s data focus?

Luminate provides granular sales and operational data, including:

Channel Performance, for a greater understanding of where, when, and how frequently your products are purchased
Shopper Behavior, with a deep dive into shopper baskets, penetration, assortment choices, and shopper interactions within categories
Customer Perception, from verified Walmart customers with the ability to have quick-turnaround surveys to understand customer decision making.

How is Luminate different than DSS?

Luminate is intended to provide a better, more accurate data source and greater omnichannel visibility into customer and category data. Walmart advises that virtually all of the data elements and features previously available in DSS can be found either in Walmart Luminate or other applications and systems. For example, purchase order data will still be available in Retail Link through NOVA. However, when you look at the Walmart Luminate Basic package, you also see some new features that were not in DSS, including enhanced eCommerce sales metrics, full-filter suggestions for dimensions, faster run times, and e-mail notifications upon report completion.

To better understand the platform differences, check out this side-by-side comparison chart:

What are the benefits for suppliers?

While it’s a big change for everyone, potentially with substantial costs involved, there’s also great value for some companies, in my view. Luminate Charter provides a more complete view of your omnichannel business, with greater visibility of all how your data is performing across all channels. You’ll gain a much greater understanding of categories and shopper behaviors. You’ll get quicker reporting output of sales and operational data, enhanced sales metrics with full omni breakouts to better optimize across channels, including Walmart’s Online Pickup & Delivery (OPD) metrics.

How is it being used by merchants?

Walmart merchants have been using Luminate as both a single source of truth, but also as a category validator. By understanding the importance of Luminate as a Walmart supplier, understanding and aligning your strategies based on data will only increase points of partnership with Walmart. Uses across joint business planning, category and line reviews, assortment optimization, item swaps, category, channel and marketing strategies.

Is Charter vs. Basic service worth the cost?

This depends upon a number of factors, including the size of your business at Walmart, the categories you sell into, and of course, budget. We’re helping clients review the two options being offered: Luminate Basic, a free version with many features similar to that of DSS, and Luminate Charter, which will offer advanced functionality. Both unlock enhanced eCommerce data and provide a view of sales wherever they occur to aid in more precise inventory management. Both come with unlimited user licenses. Basic offers limited Channel Performance insights and no access to Shopper Behavior and Customer Perception modules. Also, with Charter, you gain three years of data history for more exact trend analysis. You can find a detailed comparison of the plan options at: https://www.walmartluminate.com/plans

Do you think suppliers have any leverage in negotiating Luminate packages?

Walmart has set the parameters so that each supplier has the same options and there is not much room to negotiate on the offering. If you want to be a charter member, you get all that the suite has to offer. The part that suppliers can choose to raise or lower their investment is in customer perception.

What are the top things I should be doing to prepare for the move to Luminate?

Now is the time to assess your strategic reporting needs and budget to be able to evaluate the available Luminate options. Reach out to Walmart’s Data Ventures team as early as possible to receive your quote for the cost of Charter. Our team is available to help you in those conversations and to navigate the negotiations with Walmart. Determine if and/or when that cost fits with your organization’s budget. We can certainly help guide you as you make this decision. Regardless of the version of Luminate your organization chooses, we can help you think about how you can painlessly integrate the Walmart Luminate data into the internal tools you’re already using. Also, determine if you’re set up properly to deal with the volume of data that will be coming through Luminate; you don’t want to lose ground by missing key insights and opportunities. Finally, take advantage of this time to have your team brush up on Retail Link functionality basics through the many training classes available online or through MPG.

What is MPG doing to help clients manage this transition?

MPG is staying up to date and in constant communication with our clients about timing, data capabilities, and transitions each week. Our team is working to make it a seamless transition so that no reporting or current tools are impacted, and each supplier can continue to manage their business with confidence.

For more information on how MPG is supporting CPG companies in seamlessly transitioning and optimizing the new omni commerce data opportunities available through Luminate, reach out to Todd Matherly at todd.matherly@mpgllc.com