While the majority of consumer packaged goods sales are still derived from brick and mortar retail, the evolution of new distribution channels has increased the feasibility of manufacturers distributing and marketing products directly. As previously discussed, CPGs are leveraging these to explore new strategies (e.g., loyalty initiatives, direct shipping services) to more closely interact with consumers. Bolstering online and mobile capabilities can increase access to customer data and enable manufacturers to keep up with consumer trends, such as the growing shift towards shopping in digital channels. Traditionally, digital platforms have primarily served to educate consumers about products, but by enabling online or mobile purchases, manufacturers can collect shopping behavior data directly to learn more about their customers’ preferences. Other potential upsides to leveraging a digital DTC channel include strengthened brand loyalty and engagement and more control over product assortment and pricing. (more…)
Historically, consumer goods companies have been limited in the ways they can interact with their end consumers and collect data about them. Retail partners, with their direct contact with the end consumer, have owned the lion’s share of the data, leaving CPGs with access only to data that is shared or can be purchased. However, in recent years, the evolution of additional channels has allowed CPGs to expand beyond traditional data sources and begin to create their own customer-focused databases. (more…)
Over the years, manufacturers have refined their strategies for investing in POS displays, in-store signage, endcaps, and free-standing inserts to attract customers to their products in stores. More recently, manufacturers have increasingly allocated spend to paid search and online advertisements to assert a digital presence for their products. While it is relatively straightforward to measure the online sales impact of these digital advertising investments, it is much more difficult to confidently determine the effect that online investments have on in-store sales. Without an understanding of the complete sales impact across channels, manufacturers cannot be sure of the true ROI of online advertising.
Manufacturers can leverage in-market testing to measure the offline sales impact attributable to online advertising and glean insights to improve the effectiveness of future investments. Results from such tests can answer key questions to help maximize manufacturers’ return on digital marketing investments, such as: (more…)
Watch APT SVP Aaron Fidler discuss how CPG manufacturers can benefit from using flexible and deeper analytics that bring together multiple data sets to understand which factors are driving performance.
APT President Patrick O’Reilly discusses how the explosion of data and new media channels has provided an opportunity for consumer products companies to target and tailor their media strategy to drive better returns.
APT President Patrick O’Reilly discusses trends and analytics in the manufacturing industry