Solving the Challenges Facing FMCG and CPG brands
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Welcome to the world of Fast-Moving Consumer Goods (FMCG) and Consumer Packaged Goods (CPG), where brands are striving to meet customer expectations and stay competitive in a saturated market.
To achieve this, brands in these industries must understand their customers better than ever before, tracking their every interaction.
Thankfully, there is a solution. Loyalty technology is proving to be a game-changer for FMCG and CPG brands looking to stay ahead. In this article, we’ll cover the common challenges in these industries in 2024, and explore the solutions that loyalty tech can provide.
The key challenges for FMCG and CPG brands
Fragmented and siloed data
With data coming in from various sources, including online activity, third-party retailers, and even purchases from disconnected sources such as vending machines, it can be challenging to consolidate data into a single customer view. When brands don’t understand each individual customer, it’s very difficult to deliver personalised, engaging experiences.
Data privacy and security
In 2023, brands across all industries must navigate the complex regulatory environment around data security. Companies must get the right balance between collecting useful consumer data and protecting customer privacy.
Limited technical capabilities
Most brands in the FMCG and CPG space lack the technical infrastructure to build a customer data system. This includes the ability to integrate data from multiple sources, as well as the tools required to analyse and act on that data.
Recent statistics show that 87% of CPG companies believe that building a single customer view is critical to their success, but only 29% of them have the necessary capabilities to do so. This highlights the gap between aspiration and reality for many CPG companies.
Tech solutions for FMCG and CPG brands
Using a loyalty program to integrate data from multiple sources
Brands must focus on integrating customer data from various sources, into a single view.
With the help of loyalty programs, brands can track every customer interaction, from purchases to social media engagement. This data can then be used to create a single, 360 view of each customer, which gives valuable insights into their behaviours, preferences and purchasing patterns.
For example, a loyalty program can track a customer’s purchasing habits, such as their preferred type of soft drink, their preferred flavour of crisps, and even the time of day they typically shop. This data can then be used to create personalised marketing campaigns, leading to increased retention and sales.
Prioritising data security and privacy
The collection and storage of customer data comes with inherent risks, and companies need to ensure that they comply with regulatory requirements and adopt transparent data practices to protect customer privacy. That’s why brands need to invest in loyalty technology that meets regulations and standards.
Furthermore, companies should prioritise building consumer trust through ethical data handling practices. This includes being transparent about usage practices, as well as clear communication with customers about their data rights. By prioritising data privacy and security, companies can build consumer trust, enhance brand reputation, and ultimately drive business growth.
Building technical capabilities
To build a single customer view, FMCG and CPG companies need to invest in the right technical infrastructure. This includes tools and systems for data integration, analysis, and activation.
Loyalty programs are a powerful tool for collecting customer data and incentivizing customers to share more information about themselves.
Connect your campaigns with intelligent loyalty technology
Customers are leaving footprints in the sand as they interact with your campaigns - but they rarely leave all the information you need at once. That’s where we come in - we help you build up your customer profiles by collecting data across all the various activities they interact with.
By unifying your campaigns and collecting first-party data that is secure and GDPR-compliant, you can get a 360-view of your customers and make better decisions about the campaigns you run. We understand that retailers own most of the data (and power) right now. But with our technology, you’re in the driver's seat.
Get in touch with one of our loyalty experts to find out more.
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Helen Walker
Senior Content Marketing Executive
Helen is our Senior Content Marketing Executive. She shares valuable information about the Future of Loyalty and will keep you up to date on the latest industry insights...