To match evolving customer preferences and tastes, FMCG (fast-moving consumer goods) companies have integrated the latest technologies into their day-to-day operations. FMCG companies are adding digital technology to their sales and studying customer behavior, stock management, logistics, and distribution systems to improve long-term efficiency, productivity, and profitability. They are also using real-time data to change their marketing and sales strategies in order to keep up with changing consumer tastes and give each user a more personalized experience.
According to a new report prepared by Edelweiss Securities, FMCG companies that have adopted technology in their sales, inventory, warehouse management, and distributor systems will earn more revenue and productivity in the long run. So, let’s talk about how technology is helping FMCG companies study how customers act and change their business practices to match.
Technology Assistance in gathering Customer Intelligence for FMCG
These days, a competitive edge is only achieved if you understand the consumer pulse and build strategies with the customer at the center of focus. To have an in-depth understanding of customer needs and fulfill them better than the competition, you need to gather plenty of customer data and interpret it to extract valuable insights and consumer trends.
Unilever is one such big brand company that puts excellent impetus and resources into customer insights through their global marketing information system. Anyone closely associated with Unilever has access to more than 70,000 research documents for understanding customer intelligence and patterns in both local and international markets.
Knorr, the brand of Unilever, recently launched the “Love at First Taste” marketing campaign based on research that showed that most individuals are attracted to others who like the same flavors they do. Hence, Knorr found singles with similar tastes, set them up with food-based blind dates, and made videos showing the results. The recorded videos were shared on social media platforms and sent to “food influencers.” These videos became viral in the first three weeks and received 100 million views. This unique approach helped the Knorr brand reach millennial foodies and create awareness for the brand.
In FMCG, one of the newest trends is an increase in demand for organic, sugar-free, home-grown, chemical-free, natural, etc. foods that are easy to use and healthy. As consumers, we all wish to consume products that don’t harm us or the producers. As urban residents, we are worried about stress, pollution, lack of time, etc.; hence, products that offer health benefits are usually preferred over those that don’t.
Technology Assistance in improving Customer Experience for FMCG
Every brand continues to strive to offer unique experiences to their customers, who have increasingly become more connected. Customers expect a personal experience and to connect with brands emotionally. Digital automation is assisting brands in reaching existing and new customers at scale, not only through emails and personalized content but also via geolocation targeting and the use of personal AI chatbots or assistants.
An Australian vitamins and supplements brand called Blackmores has just launched their own AI assistant, Well-Bot, on Facebook Messenger that is assisting customers in accomplishing their New Year’s resolution of being healthier. The AI assistant Well-Bot is fun, but it also helps boost sales by moving customers in the right direction toward vitamins and supplements they can purchase that will help them achieve their fitness goals. It also provides personalized fitness, beauty, nutrition, and well-thought-out action plans. Simultaneously, Blackmores is gathering valuable insights on their customers’ health and habits, along with driving new interest.
Research reveals that customers are not worried about paying extra for personalized products. As per the YouGov report published by Deloitte, customers pay up to 20% more than the premium in the UK for purchasing personalized products. Marmite, Nutella, and Coke are some FMCG brands that still provide personalized packaging for their products.
It is clear from the above examples that there is great value in adopting digital technology to understand consumer preferences and behavior for business transformation in FMCG companies. Admittedly, it is a cultural shift for some conventional FMCG brands and a large investment, but it is essential to remain competitive in the changing market scenario and customer needs.