Strengthen your CPG data strategy with these 3 data enrichments use cases
The CPG industry is undergoing a large scale transformation. The industry has always been very competitive, but the COVID-19 crisis and empty shelves across supermarkets made the competition even worse. Brands saw customer loyalties shift almost inadvertently as consumers couldn't find their favourite brands on the shelves and naturally moved on to others. Multitude of home grown CPG brands - offering daily home deliveries during lockdowns - became challengers in their own right. Add to this the fragmented and saturated CPG markets and the customers willingness to switch to cheaper or better products at any time - the CPG space has many challenges when it comes to keeping customers loyal in the era of choices. In the last few years, consumers have been able to purchase from a variety of online services, which has further contributed to the complete overhaul of the CPG industry. Now, each interaction that a CPG brand has with each consumer - sometimes in-store, often online, produces a tonne of insights that are shaping the future of CPG's data and marketing strategies.
In order for CPG brands to run successful advertising campaigns, they need to reach customers with the strongest intents to purchase, with accurate insights and data. However, CPG is surprisingly one of the few industries that still does not have enough first party data to form truly insight-led advertising strategies for the new world. This is where data enrichment can truly empower the brands. In this article, we will discuss three key areas where CPG brands can benefit from data enrichment.
USE CASE 1 - Win new customers with lookalike modelling
When CPG brands enrich their existing customer data with a variety of new data sources like demographic, geographic, affinity and behavioural, they have a clearer, more holistic view of their customers. By applying lookalike modelling on top of these insights, CPG brands can scale the reach of their campaigns. For example, a leading personal care brand recently widened its audience reach for their new product launch campaign using lookalike modelling to understand which of their customers and their lookalikes visited high end salons. These customers were most likely to purchase their newly launched high end Keratin shampoo. The enhanced reach of the campaign was apparent with over 22% increase in store visits and enquiries to purchase the new high end shampoo.
USE CASE 2 - Personalize your campaign strategy, from platform to creatives
We wouldn't be too far off the mark if we said that CPG brands just don't have enough first party data to truly personalize their campaign down to each consumer. However, things change with data enrichment. When these brands have access to new data segments such as behavioural, demographic, device usage, content consumption and more, they are able to feed their campaign design teams with strong insights that drive campaign experiences truly personal and unique to that audience segment. For example, a new women's hygiene brand came up with three different segments of products, from high end to low budget. Using data enrichment, the brand designed an audience strategy that catered to all three pricing segments based on behavioural data and designed truly personalized campaigns across platforms and creatives. This led to equal weightage to all three pricing segments in the advertising campaign, with a 26% rise in brand awareness post the personalized campaigns.
USE CASE 3: Enhance supply chain
Take for example a neighbourhood with a large college student population staying away from home. For them, ready-to-cook supplies such as instant noodles could be more critical. Alternatively, consider areas with large migrant populations. For example a strategy used by a leading beverage brand, was to identify the change in store selection by consumers and which personas were visiting those stores. Alternative data can enable brands to modify their supply chain quickly and efficiently in order to ensure that the essential needs of a larger section of consumers in specific locations are met. This will not only help them retain their existing loyal customers but also gain an edge against brands that do not have access to alternative data to refine their supply chain in these times.
The world of CPG has changed tremendously. It's no longer a game of who has been around the longest. As choices abound and new and old CPG brands vie for customer attention and retention, the power is truly in the hands of consumers. Brands that invest in understanding these customers, their households and neighbourhoods, behaviours and affinities, will be the ones that can shape an effective operational and marketing strategy. And eventually, they will be the ones that win the race.
Lifesight's Data Enrichment solution is ready to deliver these benefits to CPG brands. Holler for a demo!