How can retailers and brands be at the center of the how and where? Here are four ways to create value both with the consumer and within the organization.
1. Provide connected consumer experiences
Companies have been trying to crack the omnichannel code for well beyond a decade. But many retailers and brands are still challenged to move from relationships based on a series of disconnected and disparate interactions to a connected experience that goes from store to e-commerce platform to loyalty program and back again. An omnichannel strategy starts by linking back-office operations, such as digital tech stack and inventory management, to front-office functions to build connections between each touch point with the consumer, no matter the channel. That’s when you find your way into the hearts and minds of a consumer who’s required to be particular about where they spend their dollar.
2. Cater to the consumer of one
Every consumer has their own unique wants, needs, preferences and journey. Beyond omnichannel, the most differentiated experiences are those that meet the needs of the individual. Achieving this level of personalization relies on data. Companies that do it right use the insights derived from sophisticated enterprise data models to influence everything from product offers to messaging and imagery, creating deeply relevant and hyper-personalized experiences.
3. Deliver on the consumer promise
A connected and personalized experience will get you nowhere if you can’t deliver, literally. Consumers will prioritize retailers and brands that can provide the product they want when they want it. Supply chain visibility is essential to delivering the experience that consumers expect. Optimized demand sensing, inventory planning and product delivery powered by technology and artificial intelligence (AI) is necessary to fulfill purchases on-time.
4. Differentiate the customer experience
The end consumer is an important consumer packaged goods (CPG) stakeholder, but so is its customer, the retailer. As both retailers and brands activate their inflation playbooks to find sources of savings across the business, navigating their relationship will be a key source of value creation. CPG brands are in the center of increased raw materials costs, retailers that’ve said “no more” to price increases, and consumers with a less valuable dollar.
The answer? Agile pricing strategies and customer incentives. This approach allows CPG companies to:
- Build the capability to continuously act and learn in real time, moving from blanket cost pass-through to responsive moves based on changing market and customer behaviors.
- Align price offerings with cost-to-serve segments to articulate the total value proposition more easily to customers.
- Further incentivize customers based on desired outcomes, such as pricing for margin.