Retail, CPG and Logistics
How omnichannel strategies can secure steady growth for CPG
Understanding omnichannel strategies
Food, beverages, clothing and cleaning products are in constant demand. They were needed in the past and will continue to be needed, as they constitute our essential commodities. However, the way these items reach our homes has evolved. We are increasingly turning to mobile phones to shop instead of visiting physical stores. This shift has transformed the Consumer Packaged Goods (CPG) distribution and sales landscape.
With consumers interacting with CPG companies through various channels, it has become imperative for these companies to devise innovative strategies that ensure a smooth and effortless shopping process across physical and digital channels.Embracing this new reality, CPG companies are now focused on creating a seamless experience for their customers across their various channels: physical retail outlets, digital marketplaces, mobile applications, social networking platforms and more. This integrated approach is referred to as omnichannel. It is a delight for customers and businesses alike. While customers can enjoy a shopping joyride, businesses can benefit from a multitude of positive outcomes.
Omnichannel strategies for CPG
To make all your channels work cohesively, it is crucial to implement omnichannel strategies. Here are a few that are commonly used in the CPG industry:
- Online and mobile presence: Making products available on official websites and mobile apps, and partnering with e-commerce platforms and marketplaces helps expand online reach.
- Click-and-collect: This offers customers the convenience of placing orders online and picking up their purchases at a physical store.
- In-store technology: Interactive displays and digital signage in stores bridges the gap between interactions that happen on online and offline platforms.
- Social media integration: Social media platforms help increase engagement with customers.
- Unified customer service: Consistent customer service and support across all channels ensures customers receive the same level of assistance and information regardless of how they engage with the company.
- Offline and online promotions: Synchronising promotions and marketing campaigns across online and offline channels help maintain a consistent brand message and maximise impact.
The benefits of an omnichannel approach
Omnichannel strategies play a crucial role in addressing challenges and helping leverage opportunities. Here are some ways omnichannel strategies can contribute to steady CPG growth:
- Expanded reach: Companies can reach a wider audience when present on multiple channels such as online marketplaces, e-commerce platforms, physical retail stores, and mobile apps. This can help tap into new customer segments and markets.
- Strong brand presence: Consistent branding and messaging across multiple channels reinforce brand recognition. It leads to increased brand loyalty and advocacy, strengthening the brand's presence.
- Agility and adaptability: The omnichannel approach enables companies to adapt to changing market trends and consumer behaviours. It facilitates quick response to market shifts, introduction of new product lines, and adjusting marketing strategies accordingly.
- Seamless order fulfilment: Omnichannel strategies facilitate multiple fulfilment options, including in-store pickup, home delivery, and click-and-collect services. This flexibility enhances customer convenience and satisfaction, driving growth.
- Data-driven insights: Data from multiple channels and the insights it gives into customer behaviour, preferences, and buying patterns, help CPG companies refine marketing efforts; personalise product recommendations, offers and promotions; optimise inventory management; and introduce new products that cater to specific customer needs.
- Increased revenue: With the spotlight on delivering a seamless and consistent customer experience across all touchpoints, omnichannel strategies foster unwavering customer loyalty and repeat purchases. As a result, businesses witness a surge in sales and revenue.
- Competitive advantage: As customer expectations for seamless shopping rise, companies providing omnichannel experiences are better positioned, to attract and retain customers, than their competitors. This gives them a competitive edge in the market.
The future for CPG
With technological advances and situational demands, traditional retailers have expanded their offerings across multiple platforms, breaking free from the constraints of only in-store sales.
Omnichannel solutions provide a centralised data hub where retailers can access a holistic view of their customers, finances, and inventory. Furthermore, they can also gain valuable insights into customers and various business aspects. With all information under one roof, merchants can efficiently scale their businesses, ensuring optimal growth and performance.
Additionally, omnichannel retail solutions enhance customer convenience, allowing them to access products and services most suitably and conveniently.
The astounding growth of the omnichannel retail solutions market in recent years comes as no surprise with reports stating “a valuation of USD 5.96 billion in 2021 and expected to maintain an upward trajectory with a projected compound annual growth rate (CAGR) of 13.6% till 2030.”
So why wait? Embrace the potential of omnichannel retail solutions and become a part of this revolution!
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