The Big Three
Three big areas are allowing the consumer goods (CG) manufacturer to better know their shopper and consumer:- They’re speaking with them, but not via traditional methods. They’re using social media, shopper and consumer surveys, and POS data versus syndicated data and panels to understand direct buying habits of shoppers at a store and regional level.
- CG companies are using digital and social enablement, especially via mobile devices, for one-to-one conversations with the shopper and consumers. These discussions allow the manufacturer to create better relationships and evolve to direct-to-household and direct-to-consumer selling.
- CG companies are creating their own loyalty programs and using this information to better engage the shopper and consumer. By interacting directly with the CG company for special offers, consumers become part of the innovation process, an opportunity to create terrific relationships.
To accomplish these three things, leaders are creating a holistic view of the consumer, shopper, household and customer, which allows more successful insights and leads to optimizing marketing spend. The cornerstone is the Demand Signal Repository (DSR). This is not the traditional data warehouse, and it requires specialists who know how to build proper hierarchies. Coupling the DSR with a new component — a CG loyalty system — will be a key to success in the future.
The leaders aren’t looking at functional silos such as trade promotion or pricing optimization initiatives, which typically lead to the information residing in a single area. Rather, they are integrating the sales and marketing information via the DSR. Actually, they are integrating the entire sales and marketing function across the enterprise. “Re-realizing” that functional areas are interrelated is creating enhancements to the quality of the insights being performed at a brand, account, shopper and consumer level. The ability to create advanced analytics is driving better insights.
Digital transformation will also drastically change the CG industry — digital video measurement at the shelf whether it is a physical shelf or the smartphone; taking a picture of an ad and finding yourself with specialized products and offers; recommended replenishment of standard household needs and having them show up at your front door will forever change consumer touchpoints. Mobility will drive the entire initiative and provide unique one-to-one selling opportunities.
Industry transformations will continue to evolve around the consumer. Supply chains will change from pallets to eaches; manufacturing processes will create personalized products; and how we market and sell will change. The transformation of the apparel and footwear industry indicates where this will go for the food, beverage, home and personal care segments. What a great time to be in the industry!