How To Navigate Common Challenges in Joint Business Planning for Ecommerce Success

Joint business plans are “the connection of both the sales and marketing teams at brand and retailer to come together and deliver on collective goals or strategic plans,” according to Christian Golder, senior manager of Orange Apron Media at The Home Depot.

Well-built plans can help brands and retailers boost their bottom lines — according to data from Bain and Company, joint business plans can boost companies’ joint profit pool by more than 10% in a single year.

The joint report from the Digital Shelf Institute (DSI) and Microsoft advertising, “Joint Business Planning Between Retailers and Brand Manufacturers,” notes that “a joint business plan is one of the most effective ways to drive alignment and accountability — a win-win for retailers and brands.”

The caveat? Translating good intentions into effective action. This piece breaks down some common joint business plan (JBP) challenges, explores how they can impact planning efforts, offers best practices to address these challenges, and provides expert insights to help streamline the JBP process.

What Are Some Common Challenges in Joint Business Planning?

In theory, joint business plans are simple: Brands and retailers create shared goals and define the steps required to achieve these goals.

Simple, however, doesn’t always mean easy. Here’s a look at some of the most common challenges faced by companies when creating a joint business plan.

Brand Challenges

While joint business plans are naturally collaborative, brands and retailers face unique challenges. For brands, top planning issues include:

Budget Uncertainty

According to one brand interviewed in the DSI study, setting budgets “is a struggle with the three-prong monster of trade, shopper, and brand spend.”

Brands may feel pressured to provide most (or all) of the funding needed for JBP efforts. Instead, retailers and brands must both contribute to a shared budget to achieve collective goals.

Process Points of Friction

Brands may also feel that JBP efforts are more transactional than relational, especially if budget discussions dominate the initial planning stages.

Retailer Challenges

Retailers, meanwhile, often face challenges such as:

Unclear Roles

Depending on the size of the brand, retailers may be unsure of their role in the process. In the case of larger brands, retailers may not know who they should contact to kickstart a JBP conversation.

Misalignment of Merchandising and Retail Media

In some cases, retailers found that brands didn’t see the value in retail media. More than half of the retailers interviewed in the DSI study cited alignment between merchandising and retail media as a pain point.

Shared Challenges

As noted by the DSI report, the collaborative nature of JBPs also creates shared challenges, including:

Separate Marketing and Sales Plans

In some cases, brands have separate JPBs for marketing and sales. The problem? This can create silos within the brand itself and make it more difficult for retailers to connect with the right brand representative.

Lack of Actionable Data

One of the biggest challenges highlighted by both brands and retailers was a lack of actionable data. Both sides said they didn’t have enough data and insights from the other about what they’re seeing in their current category, what’s happening with their shoppers, and where they’re headed with overall sales strategies. 

4 Best Practices To Address JBP Challenges

While there’s no quick fix for JBP challenges, there are several best practices that can help improve business plan outcomes.

1. Create a Clear Timeline

Plans without a clear timeline quickly become a lower priority. Consider an ecommerce brand and partner retailer looking to improve market share and drive more conversions by creating a JBP.

By connecting plan milestones to specific dates, companies can create a sense of urgency, which, in turn, drives action. If outcomes are set to occur “as soon as possible,” that “soon” can turn into “later” as other business priorities emerge.

2. Define Critical Metrics

Plans without metrics are just good ideas. To ensure JBPs meet expectations, brands and retailers must define critical metrics. These may include the number of new customers in a set period, total revenue increase over time, or per-customer spend.

3. Listen First, Talk Later

Both brands and retailers need to listen before talking. Each should give the other time to articulate their goals, expectations, and concerns before beginning the business planning process in earnest.

4. Prioritize Omnichannel Efforts

Consider the seasonal nature of ecommerce sales. Weather, holidays, and recurring events all play a role in this seasonality.

For example, winter holiday shopping in November and December can drive revenues, along with post-season sales in January. Summer and winter impact brands that sell outdoor items or clothing, while recurring events such as back-to-school sales can provide a much-needed boost.

To make the most of shifting seasonality, brands and retailers must prioritize omnichannel efforts. These channels may include text messages, email, or social platforms. Outreach can include phone calls, surveys, or personalized offers. While there’s no one-size-fits-all for omnichannel, there’s a simple rule: Meet customers where they are.

Expert Insights To Streamline the Joint Business Planning Process

But don’t just take our word for it — the DSI report also spoke with industry experts for their perspectives on how to improve joint business planning.

“JBP is a push-and-pull process with the retailer.” — Lauren Porten, Director of Ecommerce, Direct-to-Consumer (D2C) and Omnichannel, Wellmore Brands

In other words, there’s always an element of back-and-forth. Building great plans isn’t a one-and-done effort. Instead, brands and retailers must regularly review and reevaluate plan results, goals, and changes.

“It all comes down to readiness — retailers’ readiness to collaborate and brands’ readiness to provide insights and opportunities.” — Alberto Kechler, Global Head of Ecommerce at Arla Foods

Brands and retailers must both be fully committed to the JBP process. If either side is reticent or unwilling to collaborate, plans won’t work as intended.

“The ecommerce leader must compose the joint business plan sheet music AND be the conductor of a multi-department orchestra, so they play it harmoniously for their retailer audience.” — Todd Hassenfelt, Global Digital Commerce Senior Director, Strategy and Execution at Colgate-Palmolive

As ecommerce revenues increase, more companies are making ecommerce marketing efforts the foundation of their JBPs. In practice, this requires a concerted effort from both brands and retailers to build flexible, adaptable, and responsive business plans.

Teamwork Makes the Dream Work

Joint business plans help brands and retailers get on the same page regarding sales, marketing, and customer engagement.

Building effective plans, however, requires more than a shared vision for success. For both brands and retailers, JPBs that deliver on ecommerce objectives require collaboration that goes beyond surface-level sentiments.

By prioritizing communication and connection across key components such as timelines, metrics, and channels, companies can create joint business plans that address key challenges and set the stage for ecommerce success.