CPG data analytics address product, pricing, and customer behaviors. According to Accenture, only 9% of businesses have fully implemented an analytics operating model, while 40% say their analytics operating models are only partially defined.
CPG companies: It’s time to implement and take advantage of data analytics tools!
Data-driven. Analytically-informed. Advanced customer analytics. Strategic intelligence. These catch phrases line job postings and board rooms at leading CPG companies.
The emphasis on being analytically savvy has pivoted from having analytical capabilities – turning available data into usable information – to being analytically excellent – acting on this information for accurate intelligence, strategic decision making, and predictable revenue management.
Everyone is looking for a way to navigate the competitive CPG landscape and plan more profitable promotions.
This CPG data analytics transformation has created 3 expectations of growth-focused leaders:
- Demand for Accuracy
- Drive Action with Data Analytics
- Evaluate Dynamic Relationships
CPGs data analytics focuses on calculable revenue growth. Creating an analytics operating model strengthens your position in market… those CPG data points will emphasize opportunities and efficiencies to repeat in the future.
1) Demand for Accuracy
According to the Consumer Goods Technology State of Trade Promotion Management report, not a single respondent indicated that they are completely satisfied with the quality performance of their analytics.
This is a troubling revelation! As an industry, we must improve the benefits of CPG analytics; we need automated and accurate processes for modeling, interpretation, and outcome forecasting.
In the area of trade promotion, there is significant opportunity. CPGs that add a trade promotion optimization (TPO) solution eliminate hands-on, manual data compilation and modeling in favor of streamlined data harmonization, baseline smoothing, lift-curve generation, and predictive modeling.
TPO software standardizes accuracy and builds you a foundation for timely promotional analysis.
2) Drive Action with Data Analytics
Gartner predicted that 60% of CMOs will cut their marketing analytics departments by 50% by 2023, due to a ‘failure to realize promised improvements’.
Similarly, a Kantar study that shows that marketers are having trouble determining marketing performance and missing opportunities for growth.
It’s not enough to just calculate KPIs. You have to combine key metrics with predictive capabilities to see how to improve the outcome.
For example, how do you determine the impact of making one change to one promotion for one customer?
CPGs need to apply analytical insights to build a detailed and definite answer to this question… otherwise your data analyses will continue to be a snapshot of the past -used to justify poor trade investments.
Use TPO to predict and test scenarios or promotional combinations.
TPO software’s constraint-based modeling functionality optimizes outcomes aligned with business objectives – shifting CPGs from passive observers to action drivers.
3) Evaluate Dynamic Relationships to Impact Outcomes
Accenture reported that only 9% of businesses have made predictive analytics a priority, focusing instead on hindsight descriptions of what has already occurred.
CPGs should take advantage of predictive analytics through artificial intelligence [AI]. AI continually updates new data to reflect changing conditions. With artificial intelligence, you can easily explain your decisions since the tool captures cause-and-effect relationships.
Be agile with your business insights. Use TPO software to compare and visualize your data. Outline the relationship between data and decisions.
Machine learning capabilities immediately account for trend fluctuations and anticipated disruptions.
The opportunity to then compare the current state to other iterations supports an analytical process of decision making aligned with organizational priorities.
CPG Analytics Solutions
The evolving expectations of CPG leaders raise the bar for stronger data analytics. Trade promotion optimization software reports on business insights that enable CPGs to build and execute growth opportunities.
It’s time to let go of the manual processes and delight in CPG data insights. Open the doors to validation and shape your analytically-driven growth strategy.