In the world of data-driven decision-making, the ability to extract and comprehend data accurately is paramount. Data extraction lays the foundation, providing the raw material for analysis, while data comprehension transforms this raw data into meaningful insights. This blog explores the critical relationship between data extraction and data comprehension, highlighting the importance of accurate extraction and contextual understanding in deriving valuable insights.
Foundations of Data Extraction
Data extraction is the process of retrieving specific information from various sources such as documents, databases, or websites. In recent years, advancements in artificial intelligence (AI) and machine learning (ML) have revolutionized data extraction, enabling highly accurate parsing and contextual understanding of data. This is particularly evident in the case of Veryfi OCR, which leverages AI and ML to extract data from documents with exceptional accuracy and speed. Paired with Veryfi Lens (document capture), collecting data and giving rewards have never been easier. Veryfi’s CPG Toolkit is an all-in-one data collection plus data processing solution for any brand needing to capture higher volume and higher quality of data.
At the heart of every successful CPG brand’s evolution is the ability to gather and analyze insights. This involves collecting data from various sources, including customer feedback, sales reports, and market trends. With tools like Veryfi OCR, brands can extract and comprehend this data with unparalleled accuracy, allowing them to uncover valuable insights that inform their strategies.
For example, Veryfi Product Matching (which works within OCR API) enable brands to accurately match products across different sources, such as receipts and invoices. This not only helps in tracking sales and inventory but also provides insights into consumer preferences and purchasing behavior. By leveraging these insights, CPG brands can tailor their offerings to meet the evolving needs of their customers.
Data Comprehension = Crucial
Once data is extracted, the next step is data comprehension, which involves understanding, analyzing, and interpreting the extracted information. Data comprehension is crucial for deriving insights that drive informed decision-making. For example, Danone uses Veryfi OCR’s advanced data extraction capabilities to better comprehend loyalty data, ROI of programs, and brand insights.
One key feature of Veryfi OCR is product verification, which comprises data comprehension by allowing brands to verify the presence of specific products on receipts. This can be invaluable for CPG companies like Pepsi and Coke, as it enables them to see how customers regard their products, both separately and in comparison to each other. For example, by analyzing receipts, CPG brands Pepsi and Coke can understand which of their products are frequently purchased together, and use this information to inform their marketing and product development strategies.
Moreover, Veryfi OCR’s product recommendation feature enables brands to recommend complementary products to customers based on their purchase history. For instance, if a customer buys a can of Pepsi, the system can recommend purchasing a bag of chips as a snack pairing. This not only enhances the customer experience but also provides valuable insights for CPG companies to understand consumer behavior and preferences. Combined with this is Veryfi OCR API’s ability to provide competitive insights (e.g. cross-basket insights) to CPG brands. By analyzing receipts and sales data, brands can gain valuable information about their competitors’ products, pricing strategies, and market share. This can help competitors like Pepsi and Coke stay ahead of the competition by identifying emerging trends and adapting their strategies accordingly.
Case Study: Pepsi’s Use of Veryfi OCR
Of course, what’s the purpose of data extraction and data comprehension if we cannot extract insights that enable us to get stronger, better, faster than our competition? Pepsi, a global leader in the beverage industry, relies on accurate data extraction and comprehension to drive its business strategies. By using Veryfi OCR, Pepsi is able to extract data from customer surveys, sales reports, and social media interactions. By analyzing receipts and sales data, brands can gain valuable information about their competitors’ products, pricing strategies, and market share. This data is then comprehended to gain insights into customer preferences, loyalty trends, and brand perception. This has helped brands stay ahead of the competition by identifying emerging trends and adapting their strategies accordingly.
Specifically, Pepsi uses Veryfi OCR to extract data from receipts all over the world. Receipts are essentially data-loaded customer feedback forms that indicate what and with what a consumer purchased. This data enables Pepsi to comprehend customer sentiment and preferences, thus being instrumental for tailoring product offerings and marketing campaigns to better meet customers’ needs. Echoing the late Steve Jobs, customers don’t know what they want until they’re shown what they want. The smart CPG brands stay ahead of this customer obsession so they can please loyal consumers accordingly. Additionally, Pepsi utilizes Veryfi OCR to extract data from sales reports and invoices, which allows them to peer into sales trends from the lens of their vendors and distributors (stores). Thus, this enables the company to optimize their product portfolio and acquisition strategies accordingly.
The relationship between data extraction and data comprehension is essential for unlocking valuable insights. Evolving one’s brand–especially any consumer brand–requires constant innovation and gathering of insights. Accurate data extraction, coupled with advanced AI and ML technologies, lays the foundation for effective data comprehension. By leveraging intelligent OCR solutions like Veryfi, businesses can extract and comprehend data with unprecedented accuracy and efficiency, empowering them to make informed decisions that drive success.
Create a free Veryfi account to try AnyDocs OCR. Check out the API Documentation for AnyDocs to see how you can implement Veryfi’s CPG Toolkit for your CPG brand. Book a session with Veryfi to figure out your use cases.