FMCG – Meeting Industry Demands with Data
It’s no secret that the way we do our shopping is changing. Shoppers’ traditional expectations live on – convenience, value and quality – but now there’s a growing call for other considerations and retailers can’t afford to ignore them.
Tesco and Dunnhumby kickstarted the trend for monitoring customer purchases way back in the 90s with the launch of the Clubcard. This was revolutionary: customers allowed their purchasing habits to be tracked and monitored and, in return, they received offers, rewards and suggestions that were entirely personal to them.
Nowadays, these reward systems are far more commonplace and aren’t have expanded beyond the FMCG industry. Nonetheless, FMCGs’ use of data has grown even further and can now be applied across any department to maximise sales, generate efficiencies and minimise waste.
We’ve already mentioned the evolution in customer demands and how important it is that retailers work hard to reflect these trends as proactively as possible. Think about the drive for more environmentally friendly products, and the ever-growing range of “free from” produce that you can now buy at your local supermarket. These are not accidents. This is a result of careful monitoring and analysis over time. Think about products such as Method, ecover and Tony’s Chocolonely. These brands are thriving because they’ve identified the movement towards a social expectation from our favourite consumables and they’re embracing it.
Amadeus has the solution to data science insights for your business within just days. Discover more here...
So, what are customers really expecting from their favourite supermarkets?
A quick and hassle-free shopping experience. Sainsbury’s are trialling an even faster, till-free, shopping experience in response to a recognised customer demand for even greater convenience and no more queues.
Convenient food and packaging. Consumers lead busy lives, they want to be able to eat their favourite foods quickly and on-the-go.
Healthier choices. This has seen real growth over the last few years as conversations about health and a balanced diet become even more prevalent.
Environmentally responsible processes. We’ve all heard the press coverage regarding the threat to our planet from plastic waste. Retailers ignore this at their peril!
So, how can data empower your FMCG business?
There are many ways analytics and data science can be used to provide concrete evidence on which to build your business decisions, such as:
Detecting seasonal shopping trends to better manage stock and avoid wastage
Understanding the impact of promotions on customer behaviour to boost sales through offers that resonate with your consumers
Generating supply chain efficiencies by resolving current pitfalls in areas such as manpower, scheduling and stock management
Pinpointing the most effective sales channels to focus expenditure and maximise revenue
Identifying key customer segments to create campaigns and experiences that focus on their needs.
Have a browse through our guide to discover more about the ways data science can support your retail business insights.
The possibilities and opportunities presented to your retail business are endless when you implement an effective data strategy. Contact our team of data experts to discuss taking your FMCG to the next level.