Data Collection and Retention Challenges for Consumer Packaged Goods Companies
Consumer Packaged Goods companies or CPG’s are due to the nature of their sales model less likely to have insights directly from their consumers.
Due to the fact that CPG companies tend to sell their products in third party retail distribution channels presents consumer packaged goods companies with difficulties building a picture of first party data for even their most loyal customers.
CPG companies are increasingly aware that this lack of first-party data leaves them increasingly vulnerable to quick swaps and competitor offers, brands are increasingly investing heavily to establish a more direct relationship with their customers and generate the all-important first-party customer data.
Some of the new data collecting initiatives that consumer packaged goods companies are utilising include:
Brand Marketing Microsites
Many CPG brands create microsites for their brands and various product offerings. Most of these microsites not only offer product details, new products and offers but also ask visitors to hand over personal information including name, email address and phone number. In exchange for personalised special offers, such as coupons, competitions and discount codes.
A CPG manufacturer’s decision to engage directly with consumers could, of course, displease its traditional retail partners. Therefore, any D2C strategy should be integrated into an overarching channel strategy that anticipates any multi-channel conflict.
We have seen some consumer packaged goods companies launch their D2C platforms having failed to firstly identify whether there is a consumer need for the D2C offering. These CPG companies inevitably struggle to make both the time and financial commitment, particularly in e-commerce sites, worthwhile. Gaining the data, and prospective new customers becomes too expensive of a proposition. Therefore much planning is needed for the initial phase of the offering, deciding on what the D2C will offer that the consumer can’t get in the traditional CPG business model.
Of course once you have launched a D2C offering it is worth maximising the return by cross and upselling other products within the D2C platform, either website, social marketing or apps.
Arguably the most effective and quickest way for DPG companies to reach their target market is for them to invest heavily in to social media marketing. Both paid and organic social media are ideal ways for CPG brands to access the array of data available on their prospective customers.
Social Media Marketing gives brands the unrivaled access to, and the ability to converse directly with, consumers. Social media also provides insights unlikely to be available from any other data channel; following, sharing, exclusive offers and engagement enticing content will allow any consumer packaged goods company to gain insights in to the consumer shopping habits of its followers.
In a world where everyone lives on their mobile devices Apps are the new media goldmine for consumer packaged goods companies, creating multiple apps for differing products means that brands are now able to access data specific to their individual consumers shopping habits. Not only by having app specific special offers but as most individuals have a mobile device at hand 24 hours a day, 7 days a week giving quick access to sales without needing to leave the comfort of their sofa.
We usually think of App’s as only suitable for large corporations but in reality an App is valuable to businesses of all types of company especially those trading in the CPG arena.
Although CPG data is harder to gain than other types of consumer data, there are few barriers to actually getting it now – which historically there were! – with wise investment in social media, web design and app management. Analytical data is key to increased revenue, at Drop Consult we offer a range of services that help drive marketing strategies and build a bank of data on which we can build buyer archetypes. Get in touch to find out how our data collection techniques can increase revenue for your brand.