Top 3 CPG Analytics Challenges Facing CPG Manufacturers in 2019

Jul 23, 2019

Drive by the quest to improve market share leading players in the consumer-packaged-goods (CPG) market are facing several challenges that are impeding business growth. These challenges are posed by nimble niche competitors, as well as by traditional and online retailers who use their data smartly to stay ahead of the curve. But there are multiple ways in which these companies can counter such challenges one of which is to use CPG analytics to transform data into valuable insights. In this article, our CPG retail analytics experts have highlighted a few critical challenges that players in the CPG industry have been facing currently.

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CPG Analytics Challenges

Gaining the Skill to use CPG Analytics

Using CPG analytics solutions to drive business decisions requires enterprises to employ the right set of people who have the expertise to transform the plethora of data into impactful insights proficiently. CPG analytics experts can recognize the value of such data and acknowledge their limitations. Moreover, CPG manufacturers need to employ insight professionals who are not only proficient with data but also have a business mindset and industry context.

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Understanding the “Why” of Customer Behavior

Analyzing consumer behavioral patterns alone does not suffice the need and intent of CPG data analytics. CPG manufacturers also need to understand the factors driving consumer behaviors. What do consumers want and what drives their choices? CPG manufacturers need to look beyond big data sets generated by social media platforms and online shopping habits and penetrate the mindset of engaged individuals from relevant demographics to stay ahead of the curve and thrive in the future. Social listening can tell what users are doing but they don’t necessarily reveal the reasons behind their behavior. We believe an  in-depth understanding of customers’ motivations and attitudes is truly the ‘secret sauce’ in contextualizing behavioral data for greater predictive impact. This can help both retailers and CPG manufacturers in driving better business decisions.

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Privacy Concerns

The growing competitive pressures have prompted CPG manufacturers to balance their need for data with the growing concerns for privacy. CPG manufacturers risk losing the trust of valued consumers if they feel that hyper-personalized promotions blur the line between helpful familiarity and surveillance. The strategic application of CPG analytics can give CPG manufacturers a competitive advantage, but the trust of the consumer is equally important. Therefore, companies in the CPG industry should strive to use CPG analytics in a way that values the privacy of customers. This can, further, help CPG companies to develop an organizational model that can deliver a smoother and more enjoyable experience to their digitally empowered customers.

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