A recent report forecasts that spending on data analytics by CPG companies will surge to USD 4 Billion by 2030. It is critical for the CPG sector to gauge consumer behavioral patterns and swiftly adapt to shifting preferences. Incorporating external data sets and relevant indicators such as customer sentiment, logistical costs, and supply chain conditions creates a continuous improvement cycle for companies, enabling them to evolve and adapt continuously.
The Significance of Data Accumulation
At the core of data excellence lies the meticulous collection and analysis of data points derived from various marketing and sales activities. This treasure trove of information empowers CPG companies to craft tailored strategies that resonate with consumers, identify emerging trends, and drive sales by aligning business objectives with evolving consumer preferences.
The process of data accumulation unfolds across three critical stages, including:
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Observational Data:
This type of data is collected based on the in-store conditions or field reporting. This can include stock levels, competitor activity, offers, promotional compliance, and more.
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Activity Data:
Derived from on-the-ground actions, this category (of data) provides insights into the efficacy of various initiatives, enabling informed decision-making and iterative improvements.
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Sales Data:
Ascertained through sales figures, this data provides details on what sells and the quantity based on multiple factors such as location, customer preferences, customer segments, and regional demand dynamics.
Harnessing the Power of CPG Data Analytics
Leveraging advanced predictive analytics and AI-driven tools, CPG companies transform accumulated data into actionable insights. Data-driven segmentation facilitates a nuanced understanding of customer behavior, enabling precise demand forecasting and optimization of the supply chain. A well-defined strategy, rooted in past performance and aligned with overarching business objectives, is essential for driving continuous improvement and sustaining competitive advantage through optimal utilization of available data.
The Benefits of CPG Data Analytics
Integrating data analytics and AI profoundly impacts how consumers live, shop, and work globally. With valuable insights derived from heaps of data, companies can effectively identify their target audience, creating customized offerings and tailoring marketing strategies to consumer needs.