In recent years, consumer packaged goods (CPGs) brands have been leveraging omnichannel data collection, mostly to boost their marketing ROI by providing more personalized experiences and activation strategies. But the majority have yet to deploy the powerful capability across their full operations.
As shoppers interact with brands across many platforms — a report by ShipStation found 75% of shoppers use both digital and physical touchpoints on the same consumer journey —more and more data is being created. CPGs manage this complexity through omnichannel data collection: the practice of gathering and analyzing data on consumer interactions across all touchpoints of a business.
Many CPGs have begun seeing omni data’s benefits in improved consumer experiences and more effective marketing initiatives. The data’s potential goes far beyond marketing. Omni data’s ability to identify, match, and synthesize customer data in new ways can lead to efficiencies in areas including operations, product development, and revenue growth management.
Implementing these capabilities does come with challenges, including development and infrastructure costs as well as potential issues with privacy and regulation, scalability, and data governance. But those CPGs that take a deliberate approach to developing robust, cost-effective, and scalable omnichannel data capabilities can unlock benefits across their operations.
Omnichannel marketing strategy helps CPGs boost consumer engagement
Major CPGs are reshaping their marketing strategies to create personalized, omni-driven experiences for their consumers. At each stop in the consumer journey, CPGs can document, collect, and purchase first and third-party data that can be analyzed to improve the experience.
Furthermore, many CPGs are harnessing omni data to inform loyalty and subscription models. Capturing and synthesizing omni data from online and offline touchpoints empowers CPGs to offer consumers customized reward structures and exclusive promotions. Those can take many forms, including personalized membership programs (think P&G Good Everyday) and tailored subscription packages such as Dollar Shave Club’s monthly subscription that meet individual customer needs.
Unlocking omnichannel data collection opportunities across the business
The untapped value of omnichannel data collection lies in applications in three key areas:
Operations. Omnichannel data can serve as a powerful tool for demand planning and inventory management. Traditionally, demand planning has relied heavily on historical sell-in and, in some instances, sell-out data, which can be limiting and inflexible.
Omni data, in contrast, broadens the available data source and demand signals. CPGs can forecast demand and manage inventory levels more effectively by analyzing trends across various channels, regions, and fulfillment methods. If omnichannel data reveals a spike in online browsing before in-store traffic increases in a specific region during a promotional period, CPGs can adjust their inventory across both channels to meet the combined demand.
By aligning inventory with real-time consumer preferences, CPGs can also reduce stockouts and overstock situations, enhancing customer satisfaction and optimizing operational efficiency. One food company, for example, was faced with repeated stock shortages of its products on a major retailer’s shelves. The company shared comprehensive data with the retailer, resulting in improved distribution and product visibility in stores and online that reduced inventory issues and retained customers.
Product development and innovation. Omnichannel data can significantly enhance CPGs’ ability to create products that resonate with consumers. By analyzing data from multiple channels, including online feedback, in-store purchases, and social media interactions, CPGs can gain critical insights into consumer preferences, trends, and pain points.
This holistic view allows businesses to identify emerging trends and unmet needs, guiding the development of new products or the improvement of existing ones. One international CPG, for instance, noticed spending on home goods products was decreasing. The company partnered with a third-party vendor to improve data visibility and responsiveness. After getting a deeper understanding of current consumer preferences, the company launched a product in the category that became a top seller across platforms.
Moreover, omnichannel data facilitates testing and iteration during the product development process. CPGs can gather consumer feedback on prototypes or concepts through digital channels, enabling them to refine their offerings before full-scale launch. This data-driven approach increases the likelihood of successful product launches and fosters innovation that is closely aligned with consumer desires.
Revenue growth management (RGM). Omni data can revolutionize both trade and pricing to enhance RGM. On trade, it enables CPGs to compare cross-channel ROI using fused retailer and manufacturer data. This means that businesses can identify which products are performing best across different channels, allowing for more strategic allocation of resources and informing their negotiations with retailers. Omni data can detect inconsistencies such as price discrepancies between online and in-store promotions and align strategy across digital and brick-and-mortar shelves.
Why leveraging omnichannel data is key to drive consumer insights
Omnichannel data collection is a nascent discipline that requires CPGs to have a strategic vision, robust data governance frameworks, and advanced analytics capabilities prior to significant investment.
The CPGs best equipped to deploy capital into effective omnichannel investment streams, enhanced data analytics capabilities, and strategic partnerships with retail media networks and data platforms will lead the race on data and capture market share.