If you’re in a CPG business, here are a few questions: Are there any retailers you need to reach out to? How well are your products promoted and displayed in the stores where you have a presence? Is it more profitable to expand your product line within the same stores or to expand to other potential storefronts?
Data analysis makes it easier to understand what changes need to be made to improve your product or service.
Adequately investing in, organizing, and analyzing your business data is fundamental for CPG businesses to gain actionable insights and generate profits from retail and supply chain processes. By analyzing all three types of data – financial, operational, and customer – businesses can get a clear picture of their performance and where potential improvements can be made.
Let’s understand how CPG data insights can power up your business performance and make your business stand out from the competition.
Benefits of advanced CPG analytics for businesses
Businesses can use CPG data analytics to improve supply chain management, inventory management, consumer personalization, and more.
Let us understand each one in detail –
- Simplified supply chain management
Big data and CPG analytics can give businesses a closer look at their supply chain, from the planning stage to sourcing, manufacturing, warehousing, transportation, and point of sale. This helps streamline complex supply chain operations and structures, eliminating unnecessary links and improving efficiency, enabling a smooth flow of information and reducing expenditures.
2. Focused inventory management
CPG analytics also help with space planning and forecasting to prevent overstock and optimize resources. Data consolidation makes it possible to manage inventory across locations, divisions, and countries, reducing costs and improving focus on items that generate profit.
3. Effective consumer personalization
To personalize the customer experience, CPG marketers need to understand customer data, how customers use and access marketing information, and how this affects buying behaviors, product impressions, and sales. CPG marketers can create campaigns that provide a more personalized customer experience by having a holistic understanding of data. Thus, technology, data, and analytics advancement allow marketers to make much more personal and “human” experiences across channels and buying stages.
4. Value-driven marketing efforts
Marketing a product is largely dependent on the current customers’ preferences. By analyzing predictive data and analytics from sources such as social media, company websites, and user registrations, businesses can ascertain the effectiveness of each communication channel, assess viability, track various key performance indicators (KPIs), and develop insights into customers’ shopping behavior.
This information is crucial for businesses planning their marketing strategy as it allows them to target their communications more effectively and ensure that their marketing efforts produce the desired results.
CPG data analytics are essential for understanding customers’ buying habits, preferences, and emotions. This allows you to create an improved marketing strategy and spend your budget more effectively. In addition, a strong data and analytics infrastructure will increase ROI and complement your marketing efforts.
5. Increased agility
CPG businesses that use data and analytics are better equipped to anticipate and respond to buyer demographics and marketplace changes. Data-driven decision-making takes the guesswork out of strategy, and leaders can focus on deriving meaningful insights from data. This also enables businesses to act quickly and develop strategies for better business outcomes.
6. Better Efficiency
It can be tough to predict shoppers’ behavior in a certain situation, but that’s okay because you can always analyze data to get a clear idea of what to do next. Refrain from relying on focus groups too much because even the participants won’t know exactly how they’ll act when shopping for various products in a store. So it’s much more helpful to analyze actual data from the real world. That way, you’ll have a more accurate understanding of how to move forward with your business goals.
CPG data analytics is a powerful tool to help keep your brand in continuous innovation and development mode. Using this data, you can streamline your operations and sales methods and even use retail data insights to gain market share.
Conclusion
The mileage and profits created by investing in CPG data analytics are exponential. Businesses must invest heavily in big data and advanced analytics to improve their bottom line. With these two components, businesses can focus on delivering impactful services to customers.
In the short term, tracking CPG data accurately describes the ongoing operations in multiple retail locations. As a long-term strategy, measuring and tracking this data can empower businesses to make more informed decisions to allocate resources better and ensure that supply chain processes and solutions deliver the highest possible results.