Yet, advanced analytics and tactics leveraging artificial intelligence remain a mostly untapped resource for CPG companies.
While there are numerous reasons for this, it is an even more significant issue in the current economic situation. Amidst store closures and considerable uncertainty in general, consumers have swiftly readjusted their shopping behaviors to be more digital-first.
SALES GROWTH FROM DATA-LED MARKETING
In this environment, CPG brands must do a more effective job obtaining and analyzing data to better understand shoppers online and offline. Based on Google and BCG research, the value of advanced analytics and AI can drive more than 10% of sales growth.
A 10% growth is significant in CPG in any environment. But, the promise of 10% growth is just that – a promise. Not many CPG executives will create capabilities, hire staff, and invest in tools on the promise of growth alone.
Here too, BCG helps provide a model to understand the value of data for CPG marketers. This model is useful for both online and offline performance but varies based on category and data type.
Use cases for this valuation model include:
1. Helping CPG brands project value for a potential CRM program
2. Determining how much a CPG brand should invest in building capabilities
3. How much brands should pay for external data
4. Valuing the benefit of data for partners (including retailers)
5. Assessing the value of other partnerships
MORE THAN A MODEL FOR CPG DATA-LED MARKETING
But, the BCG model is only a model. It is not a one-off solution but rather an ongoing measurement tool. We recommend that all CPG brands first test new initiatives before rolling them out on a larger scale to allow for a higher likelihood of success.
Any testing phase should include multiple assessment models across several audience segments to compare the effectiveness and identify what resonates best. Brands can use insights from the testing phase to inform the broader rollout of CPG data-led marketing. Verified, relevant sales metrics allow for calculating tangible value and offering insight into future business performance.
Today’s winning CPG brands follow a data-led marketing approach. Such an approach requires a clear understanding of the value of data across the business to be most effective. If you need help getting started, we’d love to chat.
