Retail, CPG and Logistics
Personalisation strategies: Enhancing customer experience in CPG
Growing competition, rising inflation, tightening customer budgets, and evolving customer expectations are some challenges facing consumer packaged goods (CPG) brands. Irrespective of whether you are an established brand or a new market entrant, building long-term loyalty has become one of the biggest hurdles for D2C brands.
To overcome this issue, we use a personalised customer experience. 70% of customers today prefer to interact with brands that offer a seamless, personalised customer experience. 62% think companies can do an even better job personalising CPG customer experience. So, how can CPG companies develop personalisation strategies that foster long-term loyalty? The answer lies in digital transformation and leveraging customer data.
Evolving customer expectations: Where does CPG customer experience fall short?
Despite having many transformative technologies, many CPG brands still miss the mark regarding customer experience. Some of the biggest mistakes brands do when it comes to CPG customer experience are:
Failing to balance the needs of customers and consumers
Brands often fail to distinguish and balance the needs of their customers (retailers that carry their products) and consumers (end users), especially with the rising popularity of D2C channels.
Failing to demonstrate that you care
Customers today expect a seamless experience across all channels and touchpoints. Brands must adapt to ensure personalised customer experience, no matter how, where, or when they connect with customers.
Lacking responsiveness
When brands fail to actively engage with customers across different channels, it shows a lack of responsiveness. Without instant communication, customers often move on quickly to alternatives.
Why focus on personalised customer experience?
Focusing on personalisation strategies is one of the best things a brand can do to foster trust and build brand loyalty. An individualised data-driven brand experience can help foster a sense of ownership and emotional attachment that can transform your casual shoppers into brand advocates.
This includes smart segmentation of your target audience, tailored marketing efforts, or on-demand real-time access to information. Every interaction with customers can provide companies with a wealth of data, which can help you tailor products, services, and brand experience according to individual customer preferences if you can turn it into insightful information.
Each of these data-driven insights and tools is a way to build positive customer relationships to understand and influence customer buying behaviour. You can leverage customer data platforms and customer analytics to innovate and improve the CPG customer experience and build a loyal customer base in today’s dynamic and rapidly evolving market.
Path to enhancing CPG products and services with personalisation strategies
Personalisation has tremendous potential when it comes to crafting the CPG customer experience. Brands can foster customer relationships, promote customer loyalty, boost sales, and gain a competitive edge with personalised customer experience accounting for the needs and preferences of individual customers. Here are the key steps you need to take on your path to enhancing your CPG product and service offerings with personalisation strategies:
Understand the target audience
The first step is to understand your target audience, including – but not limited to – demographics, preferences, and behaviours.
Define personalisation goals
The next step is identifying specific personalisation goals – like improving customer experience or fostering customer loyalty.
Collect customer data
Collecting relevant – and ethical – customer data is crucial for personalisation. You can do this via loyalty programs, website analytics, or social media interactions.
Segment the audience
Segmentation can facilitate uniquely tailored approaches for different audience groups. This can include unique product features or service offerings, distinct marketing communication, or specific communication channels.
Customise product offerings
Modifying CPG products or service offerings to meet different customer segments’ unique needs and preferences can deliver great value. This also contributes towards customer satisfaction, adding to the overall customer experience and fostering loyalty.
Personalise marketing and communication
Personalised marketing messaging and communication are fundamental to personalised customer experience. Product suggestions based on browsing history, discounts based on order history, or targeted communication depending on the stage of the customer journey can significantly boost average order value and customer retention.
Implement personalised experiences
You must implement this personalised experience throughout a customer’s journey to improve engagement and satisfaction levels, contributing to a better customer experience overall.
Leverage technology
Technology is your trustee companion in personalising the CPG customer experience. You can leverage advanced CRM systems and data analytics tools to optimise your personalisation strategies for optimal impact.
Measure and optimise
The last step is to stay on your toes, measure the impact and optimise your personalisation strategies. A one-size-fits-all approach is no longer relevant in today’s market; you must leverage data-driven insights to understand your audience and tailor a personalised customer experience.
The constantly evolving technologies have presented CPG brands with opportunities to personalise customer journeys, creating a win-win situation and making way for a dynamic future marketplace.
For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like living organisms will be imperative for business excellence. A comprehensive yet modular suite of services is doing precisely that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.
How can Infosys BPM help?
Infosys BPM cpg outsourcing services offers comprehensive solutions to collect and analyse customer data to get actionable insights into customer behaviour. Embracing digital transformation with Infosys BPM innovative solutions, you can craft a tailored, personalised customer experience and build a competitive advantage in a dynamic CPG landscape.
