As our world becomes increasingly connected and digitized, the consumer packaged goods industry must do the same to survive. CPG companies must constantly adapt strategies to meet customers' evolving wants and needs.
In today's CPG industry, companies face similar pain points, from keeping up with the demands of the digital world to retaining customers amidst growing competition. Thankfully, there are innovative and simple solutions that can increase customer loyalty and reduce churn rates.
Keeping Up with Consumer Insights in the Rapidly Evolving Digital Age
Online and zero-touch shopping have become essential parts of the CPG industry. However, as the omnichannel shopping experience has fractured purchase habits, an emerging difficulty faced by CPG companies is gathering quality consumer analytics that provides a comprehensive understanding of behavior. In today's CPG environment, sales data does not equal consumption data.
Many CPG companies still need to use traditional data analytics methods, often insufficient in today's digital age. As a result, competitors that opt for modern, digital-first consumer analytics solutions are better prepared to meet current customers' needs and convert new customers.
Solution: Continuous Innovation
Adrich, for example, assists CPG companies by providing valuable insights into consumer trends and preferences in real-time via connected, sensor-enabled "smart labels." This allows brands to understand how consumers engage with and consume their products in their homes. Dozens of Fortune 500 have used these invaluable insights to innovate and launch new products or variations that resonate with their loyal customer base.
This method of gathering consumer data is 46% more accurate than traditional methods such as qualitative consumer surveys .
Ultimately, by understanding customer habits and preferences, CPG companies will be able to evolve with the ever-changing digital age and meet customer needs.
Engaging with Consumers When They Are Engaging with Your Product
Unfortunately, consumer engagement can be hard to predict. As a result, adapting to and predicting consumer engagement can be difficult and risky, as one wrong move could result in lost sales and competitors gaining the upper hand.
Solution: Personalized Engagement
What if there was a way to adapt to consumer habits as they change in real-time?
In the past, such a solution would be nothing more than a dream, but it is possible to do just that in the digital age of IoT and cloud computing.
Adrich leverages real-time two-way communication within 60 seconds of consumers actually using the product in home. With this usage data, brands can create highly personalized and relevant marketing campaigns, product recommendations, and offers. CPGs can target a specific consumer actively using their product or running at low volume, and send that customer personalized offers, recommendations, and surveys!
This method will enhance the customer's overall experience and foster loyalty by creating a more personal connection between the customer and the brand.
Competing Against Competitors
There will always be competition from new startups to major retailers expanding into the CPG industry. Meeting and outperforming the competition is one of the primary concerns of any business, as consumers continue to be bombarded with competitive options across brands, price points, and value propositions. Digitally-native Direct to Consumer brands have dramatically accelerated the rate at which competitive products can displace entrenched offerings in the home, bypassing the time-consuming and expensive process of getting on-shelf in traditional big-box retailers.
Solution: Data-Driven Loyalty Programs
Retaining existing customers and gaining new ones is critical when it comes to outcompeting your competition.
To that end, Adrich's insights can be used to create highly individualized loyalty programs tailored to specific customer preferences and behaviors. These programs can offer rewards, discounts, or exclusive access, further incentivizing customers to stick with the brand.
Lowering Customer Churn Rate
Churn prevention plays an essential part in any business. Unfortunately, many CPG companies deal with increasing churn rates as customers opt for other products.
Solution: Smart Auto-Replenishment
The good news is that there may be nothing wrong with the product. Instead, customers frequently opt for a different one due to availability and convenience.
This is where Adrich's smart replenishment solutions can significantly reduce customer churn rates. Brands can automate the process of refilling products when consumers run low, sending a replenishment product when—and only when—the consumer is ready for it. That means no more in-home stockouts that lead to convenience churn occasions or buildups of excess inventory that cause consumers to cancel subscriptions. Effectively, the churn decision is eliminated before the consumer even knows they have an opportunity to churn!
In addition to pure consumer convenience, this method has dramatically increased customer loyalty, resulting in a 50% increase in order frequency on top of a 20% willingness-to-pay premium versus non-connected counterparts.
Technology has become a powerful tool in the digital age, helping CPG companies grow and retain their edge over competitors.
Adrich's smart digital solutions, from in-depth and real-time consumption and volumetric analytics to targeted and personalized customer experience solutions, have already helped numerous CPG companies of all sizes—including big brands like Clorox and Coca-Cola—increase customer loyalty and reduce churn rates.
For those interested in what Adrich can do for their company, schedule a demo here.