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The Future of CPG: Consumers & Brands to Benefit From IoT

Updated: Apr 21, 2022

Since the invention of the wheel, technology has been solving problems. With tech like face recognition and AI soaring to new heights, our world today looks more than ever like a high-tech sci-fi fantasy. The CPG industry, however, hasn’t yet embraced the IoT movement. Many people within the industry don’t believe consumers are ready for technology in the packaging of their products, but recent proof says otherwise.

Adrich, an IoT consumer insights company, is providing that proof. Ten years back the cost of electronics might have been too high, but now that it has come to scale, CPG and connected products aren’t only doable, but worth the investment for brands, big and small. Recently, Adrich worked with Clorox to provide real-time usage data to the mega brand, delivering insights into their consumers that haven't been seen before. The findings of the case study didn’t just show real-time data on how and when people used their Clorox products, but it proved that consumers are ready for technology at the packaged goods level - and at great benefit.

The fact that consumers are ready for smarter packaging isn’t a one-sided win. With the Adrich Smart Consumer Platform, bringing IoT to packaged goods has benefits beyond the bottom-line - even reaching as far as contributing to sustainability. Here are some of the key upsides that come with smarter packaging for both brands and consumers.

Added Convenience & Retention

Marketing has come a long way from relying on hard-sell alone. Consumers are more informed about their purchases than ever, and market trends are moving in a direction that takes a seriously personalized approach. So, what happens when you apply this thinking to product packaging? Already proven to work, pet supply chain Petagogy partnered with Adrich when they realized they didn’t have the capacity to implement an online replenishment system themselves. Bringing IoT to product labels (with Adrich Product Smart Trackers) makes game-changing market trends become much more effective and implementable.

Benefits for consumers:

  • Convenience of need-based replenishment. With the use of Adrich Product Smart Trackers, replenishing products at the right time means that it can be ordered before the consumer even needs to remember to put it on their to-do list.

  • Effortless shopping experience. Convenience soars with a “zero touch” shopping experience - consumers no longer need to scan, push a button, enter payment information again, or even talk to get the product they need.

Benefits for brands:

  • Money saved on acquiring consumers. With the ability to guide auto-reorders directly to your website, there’s no need to spend large amounts acquiring consumers and driving traffic to your site can be used in other areas or as profit.

  • Improved consumer retention. By meeting them at a time of need, consumers are more likely to repurchase - improving retention rates greatly.

  • Increase subscriptions and Lifetime Value (LTV) of consumers. With the use of the Adrich Smart Consumer Platform, converting heavy users into subscribers becomes seamless - increasing the LTV of consumers. Petagogy witnessed nearly a 33% increase in (LTV) of consumers with Adrich’s smart replenishment program.

Consumer Feedback

“It was so convenient, very user friendly. Great customer service all around.”

“It was one less trip/errand that I had to run... didn’t have to bother with parking or carry dog food around!”

“I’d like another one for cat food. Maybe a treat component that you could have delivered with the bag of food?”

Contribution to Sustainability

Green consumerism is upon us, and with CPG under the most scrutiny from consumers, use of Adrich tech in packaging can make a massively green impact. Providing real-time insights that can tell brands when, how, and how much makes reevaluating product usage and its packaging less guesswork, more science. With this information, introducing reusability into the supply chain becomes much more efficient, reducing plastic waste and cutting shipping costs with refills instead of full-sized bottles. Best of all, consumers don't have to do anything - it's seamlessly incorporated into their lifestyles.

Taking the information gap out of things like timing and replenishment makes for a more eco-conscious relationship for both brands and consumers.

Benefits for consumers:

  • Feel-good buying experience. When choosing between options, an eco-friendly purchase that is fueled by accurate research and data is one the consumer can enjoy more and are likely to be more drawn to.

  • Lessen plastic waste. Since accurate usage data is being transmitted to brands, IoT in packaged goods via Adrich makes for more efficient manufacturing and replenishment of products - greatly reducing plastic use. Adrich can inform when consumers run out and consumers get a refill pack instead of a full-size bottle, which they can use to refill the original bottle.

Benefits for brands:

  • A greener brand story. 61% of millennial consumers agree that they would pay more for eco-friendly products, with a focus on sustainable CPG. Appealing to the environmentally conscious with green-driven data makes for a marketing approach that resonates with consumers.

  • Reduced environmental footprint and costs. With Adrich insights, brands can now know when consumers run out of products and issue a refill pack that can be used to replenish the original bottle/receptacle. Lower packaging and shipping costs come as a result of refills in D2C E-commerce SKUs. In the above case study and by using Adrich’s technology, Petagogy was able to get insight into accurate demand patterns and hence optimize production planning leading to 15% reduction in inventory carrying costs.

Well-Timed and Personalized Promotions

Today’s consumers are bombarded with promotions from every angle, with many blanket promotions being overlooked for lack of relevance. When using the Adrich Smart Consumer Platform, insights into the individual consumer’s usage habits isn’t just available, but actionable. Adrich bridges the gap by bringing IoT into the equation, with appropriately timed prompts and offers that provide value to both parties.

Benefits for consumers:

  • Save money. By receiving timely and relevant coupons and promotions that are personalized to their usage habits, consumers can enjoy discounts on the items they actually want to buy and try new ones that coincide with their actual favorites.

  • Get product information. Adrich can detect when consumers open a product, giving brands the ability to provide information on the product and its ingredients, story, and even how it's manufactured.

  • Provide feedback to brands. Consumers can actually submit direct feedback about the products they use. A direct line of communication that lets consumers feel connected to the products they use and be a voice for their development.

Benefits for brands:

  • Drive brand loyalty. Giving consumers personalized and targeted promotions that make sense not just with their purchase habits, but usage, makes for better engagement and monetization.

  • Get real-time feedback. Use of Adrich Product Smart Trackers on packaging enables consumers to submit feedback directly to brands instead of via social media or online forums.

  • Engage consumers at point of use. IoT in product labels makes the use of push marketing relevant and personalized to each consumer.

How To Get Started

Bringing IoT to consumer-packaged goods creates a symbiotic relationship between consumer and brand, the likes of which hasn’t been seen before. Learning more about how products are used and when is valuable knowledge that can be used by brands big and small, with many benefits for the consumer, too. To learn more about how your brand can start benefiting from this technology in your own packaged goods, contact Adrich for a demo.

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