The CPG industry is moving fast, and enterprises need to be able to keep pace to stay on top of the competition. In the upcoming years, CPG data analytics will be the distinguished elements between success and failure.
How CPG analytics is shaping the future of enterprises in 2023-24
CPG analytics is crucial in driving business success in the rapidly evolving consumer-packaged goods industry. By harnessing the power of CPG Data Insights, companies can make more informed decisions, optimize processes and costs, better understand consumer behavior and gain a true competitive edge.
But according to a report by Gartner, only 50% of CPG companies have a defined data analytics strategy in place.
One of the main reasons is the sheer volume of data generated daily, making it extremely difficult (if not impossible) for a company to collect and process it without advanced technology. And even after the data analysis, the CPG Data Insights obtained have to be leveraged smart and growth-oriented.
Customer analytics consulting assists businesses in doing just that: making sense of consumer data Insights to leverage their power to drive growth. This is why so many top-level executives worldwide hire CPG analytics companies. If you want to know how CPG analytics will shape the world of business in 2023-24 and the benefits of CPG analytics in this industry, here’s the ultimate guide.
4 main challenges in the CPG industry
- Customer demand is becoming increasingly diversified and exigent. Today CPG companies operate in an ever-changing landscape, where scenario planning is now more important (and complex) than ever.
- The volatility of raw materials and prices and the disruption caused by geopolitical and natural events are putting a lot of pressure on supply chains.
- Today’s market is globalized, and this adds legal requirements, standards and guidelines that companies must follow. While they have existed for quite some time, legal requirements and compliance are multiplying and becoming more and more relevant.
- Pioneers are already leveraging advanced technology for automation and analyzing CPG customer data, raising the standards for the whole industry.
What can CPG data analytics do for your company to face these challenges?
Today’s shifting environment requires CPG companies to become more flexible, innovative, and integrated. By building a comprehensive data-driven strategy employing advanced CPG data analytics and AI, organizations can gain the ability to adapt quickly to the ever-changing market dynamics, protect shares and improve revenue growth management.
Here are the steps to follow.
Embrace advanced analytics for scenario planning
Predictive analytics and MLOps help businesses forecast demand, pricing and promotion strategies. By analyzing vast amounts of historical and real-time data, they map consumer behavior, identify trends and run different simulations for scenario planning.
Valuable CPG Data Insights can be used in supply chain management, pricing and promotion strategies, and marketing.
- For supply chain optimization, collaborate with retailers and partners to align inventory levels with demand forecast and improve on-shelf availability. Change to automation to ensure inventory levels are always correct and automatically monitor SKUs’ on-shelf availability.
- By running scenarios with different pricing strategies, companies can predict consumer response and demand in order to find the right price that maximizes profit.
- Employing consumer data analytics in marketing allows for designing personalized and highly efficient marketing campaigns. Keep monitoring your campaign and ad spending to verify promotion effectiveness.
Optimize integrated data management
Almost all decision-makers in enterprises (93%) believe the complexity of data management is impeding transformation.
Advanced CPG analytics can help overcome this issue in 3 steps.
- Implement robust data governance practices to ensure accuracy, integrity and regulation compliance.
- Converge data from all sources (sales, marketing, consumer insights, operations, supply chain) in a comprehensive consumer data platform for better visibility, integration and efficiency.
- Employ cloud-based solutions for scalable data storage and real-time processing, and minimize the risk of data loss.
Gain CPG Data Insights on consumer behavior, competitors and the market
CPG analytics proves extremely valuable for competitor intelligence and market analysis.
According to Nielsen IQ, companies that excel in CPG data analysis and revenue growth management are likelier to stay ahead of the competition.
Understanding your competitive landscape is fundamental for successful revenue growth management, but you need the right data to do so. Retail sales and competitive data help form a complete picture of who your competitors are, where they’re operating, and where they’re not; this allows you to shed light on potential market opportunities yet to explore.
Moreover, CPG Insights on consumer behavior and preferences allow identifying trends and patterns and for the prediction of demand. Access to accurate customer insights reduces the distance between a company and its target audience, strengthening their relationship and increasing revenue.
Connect with Tredence to get custom CPG business analytics solutions
Why do CPG enterprises need a custom-made AI and data analytics platform?
CPG analytics companies like Tredence offer CPG business analytics solutions aimed at each business unit. A comprehensive CPG data analytics platform should support your enterprise in all its crucial steps:
- Demand forecasting
- Revenue growth management
- Market analysis
- Sales and operations planning
- Trade promotion management
- Customer analytics consulting
- Pricing and promotion strategies
- Supply chain management
- On-shelf availability solutions
- Personalization and precision marketing
Tredence’s business analytics solutions can be tailored according to your specific needs, giving you control over the entire system and a sharp advantage over competitors. Learn more about our CPG analytics use cases to discover how we can lead global companies toward growth and competitive advantage by leveraging technology and CPG data analytics.
In the near future, CPG analytics will become the heart of business strategy, focus, and investment. Data analytics in CPG industry will only become more relevant in 2023 and in the upcoming years, and companies need to learn fast how to integrate it into their business model: is your company ready?
