Gaining Deeper Insights to Drive Connections in the Changing Consumer Goods Landscape
The traditional landscape of the consumer goods (CG) industry has been forever impacted by digital transformation. With the rise of e-commerce giants like Amazon, CG companies are under rising pressure to solidify their market share, increase sales, and engage consumers in ways that fit with changing purchasing behaviors and expectations. 51% of CG leaders believe that Amazon’s Marketplace is a critical threat to their business and 68% think that consumers are more loyal to Amazon’s Marketplace than individual brands. In addition, 49% of CG leaders perceive retailers’ private-label products as a business threat (“Consumer Goods and the Battle for B2B and B2C Relationships,” 2019, Salesforce). To remain competitive, CG companies rely heavily on the success of their retail marketing execution – the last-mile processes of getting the right product, on the right shelf, at the right time.
Additionally, today’s consumers are thinking differently about their purchases and are increasingly concerned with brand and product values around sustainability, health, and wellness. Many companies are going beyond reimagining their products, to reimagining their entire brand. As the CG landscape expands across online and offline channels, more consumer data is available than ever before. As a result, household brand names and new players in the industry have an enormous opportunity to create connections with their consumers and drive long-term brand value, while simultaneously impacting short-term sales. For the CG industry, understanding consumer data is the key to driving connections with consumers across their omni-channel journey and in turn, gaining a competitive advantage in a disruptive market.
Data opens up the door, but the barrier to entry is high
With consumers engaging across a multitude of platforms and channels during their path to purchase, marketers are gaining access to troves of valuable data. And consumers are willing to share personal information – 79% of consumers say they would exchange relevant personal information for contextualized and customized interactions with marketers. However, over half (55%) of CG leaders experience barriers to building relationships with their consumers, including difficulties turning data into actionable insights, siloed departments that don’t collaborate or sufficiently exchange information, and disparate systems and sources within the company (“Consumer Goods and the Battle for B2B and B2C Relationships,” 2019, Salesforce).
Data & real-time optimization are transformational for consumer relationships & business operations
So why is data so important and what will solving the barriers to entry achieve?
At a time when brands are going through a process of reinvention and striving to create messages and content that resonates with an evolving audience, it has never been more important to achieve a holistic view of the consumer. With access to a 360 view of the consumer, CG marketers are able to test and understand the impact of their brand messages and content, ensuring that they are delivering personalized, optimized consumer experiences through the right channels, at the right time, across the customer journey.
CG companies are governed by unpredictable and cyclical consumer demands and CG product inventory oftentimes has a perishable shelf-life. With access to product and offer level data, marketers can gain access to real-time insights that connect supply and demand, to ensure that they are selling-through their product inventory, and ultimately driving ROI for their business. As CG companies battle for sales against marketplace powerhouses, private-labels, and rising direct-to-consumer brands, they need to be agile in their marketing strategies and achieve the right balance between selling and marketing.
Marketing Intelligence Solution: Connect & Unify Data for Intelligent Analysis
Creating a single source of truth
Marketing intelligence platforms like Datorama, a Salesforce company, help marketers connect and unify fragmented data sources, combining them into a single view of their consumer that many CG marketers lack and perceive as one of the most prevalent hurdles in creating valuable connections with their consumers.
Such platforms automate what was once a manual, time-intensive, and error-prone data management process, giving marketers back the time to focus on operational efficiencies and ensure that internal and external stakeholders are working from the same set of facts, KPIs, and taxonomies — ultimately laddering up to a common set of goals across the business.
Gaining speed to insights & optimization
On top of working from a unified set of data, Datorama adds cross-platform and cross-channel analytics, instant and customized data visualization, and intelligent recommendations to help optimize marketing KPIs. Artificial intelligence (AI) powered insights means that CG marketers have access to real-time performance data that they can immediately use to optimize campaigns and touch-points that best resonate with consumers, rather than analyzing piecemeal insights, weeks or months after the fact. The best time to optimize a campaign is while it’s still in motion, allowing marketers to double down on what’s working or pull back on campaigns that are underperforming.
Datorama in Action
Land O’Lakes’ transformational brand journey embodies this marketing intelligence solution. Land O’Lakes, Inc., best known for its iconic butter brand, is one of the nation’s largest cooperatives, owned by individual dairy farmers and agricultural retailers. The company realized they needed to embark on a transformation to support modern consumer habits and differentiate themselves from the competition to be successful in a changing market. Prior to the transformation, Land O’Lakes had limited visibility into its data and a small analytics team spending their time aggregating data. Overall, Land O’Lakes needed a better way to personalize their marketing efforts. But disconnected data and siloed systems made it impossible to map the consumer journey across multiple touch-points and get a full, 360º view of their consumers. This disconnected data reverberated internally as well, where teams often worked in silos and stakeholders were on different pages.
To meet these challenges, the company turned to Datorama to harmonize its data. In turn, this gave Land O’Lakes a cross-channel view of leads, a complete view of ROI across marketing activities, and actionable data on consumer behavior and engagement. Through its partnership with Datorama, Land O’Lakes used intelligent data and insights to transform their brand strategy while remaining true to their values and delivering stories that resonated with their audience. See the full story here.
For more information about Datorama, schedule a demo at Datorama.com.