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E-commerce is changing the way CPG companies do business
For most CPG companies, intelligence is everything. Digital and e-commerce market intelligence has been in high demand from large CPGs since the emergence of e-commerce on the scene. CPGs and retailers normally have their decision-making processes rooted in the same information available for the non-digital environment and marketplace (brick and mortar retail), but have been pushing partners and new players to provide high quality information for the digital world. McKinsey said it best when they noted that “After lagging behind other sectors with rocketing online sales, consumer-packaged-goods players are at an e-commerce tipping point.”
The challenge so far for CPGs has been to find a data and information provider that has meaningful coverage (geographically and across channels), as well as accuracy down to specific categories and products. So where will this data come from? Companies like Amazon have traditionally been very protective of their data, as have other retailers. Yet meaningful insights, such as consumer journeys in the digital space from awareness (search, ads, social media) all the way down to point of purchase, are so tantalizingly close.
Solving the riddle: Key Metrics for CPG’s
CPG’s can access mission-critical information, based on massive data sets, that can give them a huge advantage in today’s business environment. Let’s take a look at some of these.
Category market share
CPG’s can understand who owns what share of the market, and can assess this by category, units sold, sales, gender or various other parameters. This shows who is getting it right, where there is room to improve, what the potential is, how you are doing against competitors, and providing tangible KPI’s to measure growth and success.
CPGs can understand where to sell their products, how much demand there is, and how they are faring against the competition. They can optimize their channel mix, ensuring they are getting the best distribution, focusing on key channels, and boosting underperforming partners, while not missing out on the clear winners of each geo and market.
Traditionally, CPG-based companies are liberal with their ad spend, in an industry that is difficult and time consuming to track. Today however, CPGs can stay on top of their ad spend ROI by knowing exactly what sources and channels are converting. Resources can thus be funneled towards high-conversion sources, drastically improving ROI, enhancing measurement and visibility, and leveraging the top performing channels for ongoing business success.
Geo Segmentation– Shopper Location
As the real estate adage goes, it’s all about “location, location, location”. By understanding where shoppers are, CPG companies can utilize the benefits of e-commerce and online platforms to micro-target their shoppers, create relevant ads and deals, understand where to invest precious resources, and identify previously unseen opportunities.
Product level performance
CPGs can now know exactly what products are winning each hard-fought battle, down to actual SKU’s. Which deodorant is most popular among women, what impact does a price point change have on demand for men’s hair gel? All of this information can be at your fingertips.
Switching and Loyalty
The correlation between products is not only fascinating, it’s a powerful tool to gain market share. Understand what the common substitutes are for your product, and understand the threat as well as the opportunity.
Has this piqued your interest?
All of this is possible, right now, with Market Beyond. The question is if you can afford not to have this information in your company. With unmatched accuracy, a world-leading database, and real-time, product-level, actionable insights, this is one seriously powerful tool. Using proprietary algorithms and the latest tech tools, it’s time to join the new era of consumer packaged goods.