CPG Analytics: The Definitive Guide
Consumer packaged goods companies (CPGs) face a number of challenges ranging from changing demographics to evolving shopping preferences to the rise of omni-channel competition. In reaction to these challenges and many more, forward-thinking CPGs are investing in analytics platforms that give them a winning edge.
Scroll down to learn more about the CPG analytics process and how your company can leverage data to outpace your competitors.
Table of Contents
How to Succeed in Consumer Packaged Goods with Data and Analytics
1. Get a complete, up-to-date rundown of your current performance.
With an agile and smart analytics solution plugged into your data, you can perform the kind of in-the-moment reporting and analysis that will help you move past the competition.
From big-picture analysis like assessing marketing effectiveness and evaluating key performance indicators (KPIs) to more granular work like monitoring product availability and preventing out-of-stocks, the ability to conduct up-to-date research and reporting can prove pivotal.
Look for solutions that let you build dashboards as you go, rather than working from static reporting that was built months prior to support previous targets and business needs.
Real-time analysis gives your team the flexibility to make changes that have an immediate impact, rather than waiting to execute a retroactive fix.
2. Identify your biggest growth opportunities, and forecast future performance.
When it comes to the data itself, leading companies secure comprehensive data from retailers and third parties, including full-basket and shopper-panel data as well as loyalty-card and coupon-redemption data.
To edge out your competitors, work with a CPG analytics solution that can help you sift through the copious amounts of data and quickly make sense of it.
You need to be able to look at your own data as well as syndicated data, so identify an analytics solution that gives you instant access to all that you need. You don’t want your team to spend its time searching for answers. Instead, they should be thinking critically about how to make meaningful decisions based on those answers.
With the right solution, you should be able to investigate your sales pipeline to track your leads, selling stages, average time to close, and more. On the marketing side, you need the ability to perform churn analytics to find changes in purchase tendencies and save at-risk customers. You will also want to perform attribution studies to see which channels are profitable and which are not.
And finally, look for a solution that helps you review the customer journey to gauge user tendencies across your omni-channel presence.
Analytics for CPG Roles Within Marketing and Sales
From opportunity analysis to churn analytics to attribution studies and even customer journey mapping, new advancements in business intelligence make it so that you can make quick and effective marketing decisions.
- Executives, like CMOs, need a solution that gives them and their teams direct data access. With that access, they can optimize marketing spend by studying customer behavior, capitalizing on growth opportunities, and preventing churn.
- Brand and category managers need analytics software that lets them truly understand product performance. For example, seeing product sales by all demographics and permutations with the ability to drill down into the results.
- Consumer insights researchers evaluating company performance using the 4Ps (price, product, promotion, and place) benefit from a solution that integrates point-of-sale and syndicated data for more advanced market study.
Wherever your role falls in the consumer goods marketing space, you should be capitalizing on the sheer volume of available data and leveraging it for better, more informed decision making. Identify a marketing analytics solution that helps you do that.
Click the button below to learn more about marketing analytics for CPGs.
To outperform your competition and truly understand your customer base and sales process, you need to leverage an AI-powered, augmented analytics solution.
According to Gartner, augmented analytics is an “an approach that automates insights using machine learning and natural-language generation” and “marks the next wave of disruption in the data and analytics market.”
With an augmented and accessible analytics solution, your sales team skips the wait-time on reports and goes straight to strategic review and planning.
They ask their own natural language questions (i.e.: “what were sales of X last year by state”), get answers in seconds, and can dive into the data to uncover more actionable information.
Given the metrics-driven world of sales, your team has to be able to perform key research including sales pipeline review (tracking leads, selling stages, average time to close, etc.), win-loss analysis, and opportunity studies.
Click the button below to learn more about sales analytics for consumer packaged goods companies.
Common CPG Problems Solved by Augmented Analytics
How One CPG Company is Winning with an AI-Powered Analytics Platform
A leading consumer packaged goods company was looking for help in two areas. They needed to identify more growth opportunities, and they wanted to do so quicker than they had previously. So, they turned to AnswerRocket.
Discover how our analytics platform is helping their consumer insights team efficiently answer key questions related to brand health, competitor performance, and gaining market share.
How AI and Machine Learning Can Transform Your CPG Analytics Approach
Easy to Use
When researching AI-powered analytics platforms for your CPG, look for a solution with a natural language search feature and an incredibly intuitive user interface.
In practice, that means your business users can type their questions directly in a search bar, almost immediately receive an answer (think Google), and drill down from there. No special training is needed, and non-technical users have full control over the reports they run.
Thanks to the inclusion of natural language search and valuable data visualizations, non-technical users no longer have to wait days or weeks to get their questions answered.
Rather than requesting a report from a very busy analytics team, your typical user (such as a category manager) can type their question in and receive a detailed report in seconds. This frees up your business users and your analytics team, allowing your CPG company to forge ahead of the competition.
Beyond answering the questions of non-technical users quickly, the most advanced platforms also offer insights. The depth of insights will vary from platform to platform, but you want to identify a solution that can synthesize your data and present you with key takeaways and actionable findings.
With the help of AI and machine learning, the leading analytics platforms can handle multiple enterprise-level data sources and sift through thousands of data points to isolate the biggest opportunities for your consumer goods company.
The current and future value of insights should not be undersold. Nilam Oswal put it well in her article for Dataconomy. She explains:
AI offers better insights than ever before. AI is, essentially, automation of the maximum sequence of decisions originating from prescriptive analytics. Its intelligence comes from its ability to give real-time feedback data to enhance prescriptive models. This ensures that the next prescribed decision will automatically be better than the previous. This exceptional ability to adapt and learn enables AI to execute actions following automated decisions. As organizations continue generating more data, the analytical might of AI will help power the next phase of decision-making and profitability.
In other words, actionable insights are the future of modern business intelligence.
What Self-Service Analytics Means for a CPG
Picking the Right Analytics Solution for Your CPG Company
However, the decision to invest in a new analytics platform should not be taken lightly. As an enterprise-level CPG, you cannot afford to make the wrong choice.
So, where does that leave your business?
It means you need to review the field and choose a platform that complements your goals and provides insights beyond what your team is currently capable of discovering.
There are endless ways in which you can analyze CPG analytics software, but to get started, we recommend the following list of seven selection criteria:
- Is there a truly user-friendly interface for business users (think: CMOs, brand managers, category managers, etc.)?
- Are the data visualizations intuitive and readily digestible?
- Is there a feature that provides deeper insight or next-level thinking?
- Is the solution open and flexible to any data source?
- Can you access the platform on mobile devices?
- Will the vendor be able to get up and running smoothly and efficiently?
- Will your data be safe?
If you can answer yes to all of those questions, the platform is in good shape and worth further consideration.
Schedule a Demo of Our Solution for CPGs
Designed for enterprise-level business users, AnswerRocket is a leading solution in the CPG analytics space.
Press play on the video to see a preview of our solution in action.
Now that you have seen the preview, click the button below for a personalized demo of how AnswerRocket can enable your team to make better, faster, data-driven decisions by simply asking questions.