CPG brands (usually those that offer consumer packaged goods with a short lifespan and have recognizable packaging that customers buy regularly like food, drinks, clothes, cosmetics, and more) are high in demand, they have a short life and consumers buy them on a routine basis. Digital technologies have empowered the CPG industry.
The industry continues to grow and some of the top trends to watch are:
1. Development of Proprietary technology
Global CPG companies are setting forth in-house software and systems to modernize their brands. For instance, Procter & Gamble has taken a step forward to set up an innovation center in Singapore with a team of data scientists, engineers to work on data driven product innovation.
2. Use of data and analytics
Using ultra-personalized Instagram ads, CPG companies are using data and analytics for targeted marketing.
3. Rapid Growth of direct-to-consumer brands
Thanks to the rapid growth of e-commerce, manufacturers are directly selling to consumers.
4. Subscription-based payments
Some CPG brands are also experimenting with subscription-based payments. With great offers, they incent consumers to subscribe to their products. For instance, Dollar Shave Club offers a subscription model for consumers where they send you monthly razors.
5. Brick-and-mortar stores for online retailers
Online stores are opening their brick-and-mortar stores such as Amazon. Amazon is experimenting with technologies to have a seamless online and in-store experience.
6. Click and deliver
Modern tech makes it possible for companies to deliver consumer packaged goods right to the buyer’s doorstep.
These trends symbolize the evolving nature of consumers. Consumer behavior is changed due to advances in tech and the shifting expectations that these trends have created. CPG brands are continuously innovating and responding to meet customer demands.
Out of all the developments, CPG brands need to embrace a robust martech stack to improve their operations.
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The past two years of the pandemic have changed consumers’ behavior significantly. They have adopted digitization in their buying journey, consumer-packaged-goods (CPG) companies have realized the need to interact with customers in innovative ways. As a result,
- CPG brands started using first-party data, which not only helps in understanding consumer needs but it is also helpful to create impactful marketing campaigns.
- CPG CEOs demand a 360° view of the customer along with a fit-for-purpose marketing stack to share the right message, with the right customer at the right time. Thus, the role of Martech.
- Abhinay Bhasin, vice president (Asia Pacific), data and product Solutions, data sciences, Dentsu International, quoted that the need for an apt marketing stack has transformed the approach to gather information and utilize it to drive business growth.
- As personalization is at the fore, CPG brands also need to create timeless customer experiences, and thus, there is a need for advanced marketing automation. The new marketing game encompasses an understanding of customers with stronger predictions offering them seamless customer experiences. Thus, there is a dire need for a holistic martech stack capable of enriching and building first-party data layered with behavioral insights from different platforms.
Experts say CPG brands have approached martech for two primary reasons:
- First, consumers have shifted towards digital channels for most parts of their purchase journey. This trend is leading to huge investments in marketing technologies enabling ecommerce and personalization.
- Secondly, as cookies are discontinued from the websites, CPG brands have scaled their investments in customer relationship management (CRM) and customer data platform technologies (CDP).
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All these investments are bound to increase in 2022 and beyond. Today, several CPG brands are gradually putting their martech at the top of their marketing agenda, but there is still a need to upgrade their existing marketing frameworks.
For instance, breakfast giant Kellogg’s is using data to tell the story of its cereals. The brand’s marketing director proudly quoted that martech and other integrated tools play a crucial role in the brand’s funnel marketing. He further explained, at the top of the funnel, first-party data helps to optimize the right customer reach and create more awareness among consumers. At the middle of the funnel, the same data helps to create effective marketing campaigns. Here the consumers are pushed to the bottom of the funnel, which is purchase consideration.
One important factor in this stage is to sharpshoot the customers with e-commerce partners using predictive analytics.
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