Digital Domain Imperative To CPG Growth

Consumer packaged goods (CPG) companies can realize significant gains in cross-channel growth through digital collaboration with retailers and distributors and better internal integration a new Accenture research study shows.
 
Although CPG executives are committed to increasing their use of digital technology to improve internal integration across marketing, sales, service, supply chain and research and development, many believe a number of real and perceived barriers – from emerging market restrictions and lagging customer analytics – may slow the process.
 
The study, CPG Sales Leaders Go Multichannel; A Guide To CPG Sales And Channel Management In A Digital World, conducted by Forrester Consulting on behalf of Accenture, is based on the responses from heads of sales and account directors. The majority surveyed (67 percent) cited moderate or significant potential for digital technologies to amplify sales through traditional channels by improving the allocation of marketing spend to drive mutually beneficial retail relationships and execution to improve sell-through.
 
Additionally, three-quarters (75 percent) of all account directors surveyed expect improved collaboration with retailers and distributors  through digital transformation to drive the availability of their products and make the best use of shelf space and trade promotion funds. CPG heads of sales cited several additional potential benefits, including: reducing the cost of servicing customers, increasing the chances of consumers trading up and boosting sales through targeted email with personalized content and offers and with consumer care services (cited by 50 percent, 46 percent, 57 percent and 51 percent respectively).
 
The study shows that digital technology has the potential to help consumer brands pool actionable insights to increase consumer loyalty, share of wallet and the lifetime value of their products. However, a large majority (70 percent) of CPG heads of sales believe this potential may not be realized because there is a lack of consistent, shared consumer data to improve decision making. Six in ten (60 percent) of these same respondents find it too difficult to deliver relevant and personalized content to engage consumers effectively through digital channels.
 
Two-thirds (66 percent) of CPG companies can identify online the stores that normally stock their merchandise, and half (50 percent) can confirm current availability by store using digital channels, according to sales leaders. However, just 16 percent of companies currently use digital technologies to maintain the in-store and online relationship with the consumer to drive repeat purchases in the store. Furthermore, only 38 percent of all survey respondents say their companies use digital channels to drive planogram compliance, and just 30 percent say their companies use digital channels to drive perfect order and perfect delivery programs with retail partners.