If you want to get more people to choose your brand over another brand, there are ways to make data-driven decisions that gain customers. Paying attention to old data isn’t going to provide the results you want. You need real-time data to get the results you want. Read on to find out how you can use CPG metrics to win customers over to your brand and influence sales.
CPG Data Analysis for the Win
CPG companies are dealing with hard challenges including economic and political uncertainties. The changes in needs and wants of customers can be confusing and turn around as quickly as they started. Since changes take place so quickly, it is important to have data available to your company in real-time. Acting on outdated information can harm your strategies more than help them. What was popular last month may be on the way out already.
Whether your company is large, medium or small, there are basic best practices your company should follow. When you focus on the fundamentals, you can count on getting the best results possible.
1) Look for Areas of Growth
Getting as much information from retailers as possible is vital to understanding where major growth is going to take place. You want to review full-basket, shopper-panel, loyalty-card and coupon-redemption data. Getting this data from retailers will give you a full picture for a winning strategy.
After gathering important information, it should be used for sales and marketing. Some companies also blend their sales and marketing teams or creating new roles that work with both departments.
2) Invest In “Power Partnerships”
Investing in relationships by putting in the time to collaborate and have top-to-top conversations at least a few times per year is an important part of being a winning CPG. Sharing information and best practices with your partners helps everyone win and builds goodwill.
3) Factor Data Into Revenue-Growth Management
Companies will continue to couple their decision process with a review of pricing, trade promotion, assortment, and revenue-growth management. Revenue-growth management (RGM) has become a well-known term, and companies that focus on doing well with RGM have noticed a nice margin increase. The data in the decision-making process has come from advanced analytics, Big Data, and any other sources they could get their hands on.
4) Understand Omni-Channel is Coming & Commit to Success
The writing is on the wall; consumers love to shop online. While CPG might not be taking over the scene just yet, people are warming up to the idea. Companies are beginning to notice that they have to get onboard with the thought of eCommerce because it is not going away.
What Should Your Company Do With Collected Data?
When you want to gain more customers and increase your sales, you can’t just collect data. You also have to analyze and take action on the data that you collect. One of the biggest costs CPGs deal with is trade promotion costs. Trade promotion cost only comes in second to COGS. When you are planning your trade promotion, there are key ways you need to use your data to ensure your success.
1) Collaboration and Real-time Visibility
Your company should work to increase collaboration between departments. The more departments work together; the more effective promotion plans will be. Everyone should be able to show how dollars are spent and what initiatives they were spent on. Data about what customer segments and products SKUs were being targeted should also be shared. The more alignment there is throughout the company, the more effective the collected data will be.
2) Success Measurement
The promotion should be analyzed to measure the performance against sales. High-performing campaigns should be increased and any campaigns that are not doing well need to be optimized. All departments should be able to share information to see the success of the promotion. Sharing information in this way will allow for the maximum return.
3) Plan and Optimize the Trade Promotion
While the plan takes place before the trade promotion starts, you should be continuously optimizing with real-time insights. You should use the data you gather to optimize at every level. You should be able to change how you spend your trade dollars at any time.
Personalize for Increased Sales & Influence
One of the most powerful ways to get people’s attention is to show them you are paying attention. Gather data about your customers through loyalty cards, past purchases and more to see how you can make their customer experience customized through personalization. When your company thinks about the personal touch, there are opportunities for upsells, to increase customer loyalty and create a raving fan.
When you are personalizing to, make sure you are overstepping. Target went through a situation where they were predicting pregnancy and sending promotions and noticed it could be a major problem for them and stopped. You want your customers to know you care, but you should never make them feel like you are spying on them. Knowing where to draw the line with data use is important. Instead of taking actions that are a dead giveaway that you have a great deal of information about them, use the information to make a decision regarding your company and how you can better service your market.
Make Strides to Success with the Data You Need
Working with a data management company that can help you take your business to the next level will allow you to cut time off your learning curve. From CPG data to other important metrics, trying to operate your company without the proper information could slow your growth to a crawl. Contact us for a free demo to see how we can help your company achieve success.