4 steps to improve the digital consumer experience
June 18, 2021
X MINUTE READ
In brief
In brief
- Consumers’ attitudes and behaviors—including what and how they buy—have changed, likely permanently.
- Retail models are being reinvented. Small and digital native CPGs, built to be agile, are gaining market share.
- These changes are dramatically challenging large, global CPGs traditional consumer and customer engagement models and investment strategies.
- CPGs must fundamentally rethink focus areas, become digital at scale and redesign their operating models to deliver the end-to-end experiences.
Winds of disruption are raging, and consumer packaged goods (CPG) companies are in the eye of the storm. From macro environment changes reshaping consumers’ attitudes and behaviors, to material shopping behavior shifts, to the dramatic reinvention of retail models, large global CPGs are being battered from multiple directions. Weathering this storm requires substantive change. If they fail now to establish and scale new approaches for growth, CPGs may fall behind and never catch up.
To grow, CPGs must radically rethink their relationships with both consumers and customers.
Here's what CPGs must do to grow
Rethink relationships with consumers
Brands need a relevant brand purpose and unified strategy to drive a consistent brand experience along today’s complex path to consumption.
Reshape relationships with customers
Customers expect CPGs to seamlessly coordinate between channels, digital and in-store. Local, smaller stores are increasingly important.
Reimagine routes to market (RTM)
High-performing CPGs are 50% more likely than peers to have further embedded and integrated a digital approach to their routes to market.
Redesign operating models to enable growth
CPGs need to become fully insight-led. Organize around priority digital consumer outcomes across functions and reduce complex decision-making processes.
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Winning in the new age of the digital consumer
To grow, CPGs must radically rethink their relationships with both consumers and retailers.
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How can CPGs get started?
Mere collaboration with retailers, consumers and third-party partners may not be sufficient. CPGs need to determine how they will meet consumer needs, find new ways to work with retailers and reconfigure their organizations to be responsive and flexible. How?
With consumers, establish a two-way dialogue. Improve your digital consumer experience online and in-store. Balance global and local approaches.
Take a systematic approach, including for the digital shelf. Use new analytical tools to leverage available data, at speed and scale.
Prioritize customers and identify how to create new joint value. Design new propositions and experiences considering the broader channel environment.
Create end-to-end processes enabled by digital tools and a liquid workforce. Develop an agile, resilient supply chain with ecosystem partners.
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