Part 3 of the “Consumer Products and the Crossover Effect” series
Understanding and connecting with consumers and retailers are more important than ever to consumer goods companies. Consumers demand nothing less than high-quality products sold at a reasonable price and brands that complement their values and way of life. Meanwhile, retailers expect the brands they offer to guide them to better understand what consumers want, deliver them through channels that drive sales, and sense when the market changes.
As consumer brands become more focused and data-driven, the better equipped they are to help retailers concentrate on the best opportunities. Together, they can adopt bold sales strategies and reallocate resources at the moment the market appears to shift, especially as emerging markets and new competitors gain momentum.
Target, share, and evolve: A winning combination in consumer goods
Thanks to their growing online presence and use of social media, consumer goods brands and manufacturers are creating opportunities that are accomplishing more than merely communicating and connecting directly with consumers. They are generating insights that drive a level of personalization across all interactions – from a simple social post to a transaction and ultimately a product experience.
And for retailers, acquiring this firsthand consumer intelligence can help them advance their consumer engagement, conversion rate, and transaction value. How? Check out these three slam-dunk personalization strategies that are currently igniting tremendous growth for consumer goods companies and their retailers.
Strategy #1: Creative delivery options
As one of the leading sports brands in China, Li-Ning’s products are sold in over 6,100 stores across the country. However, because its online and offline stock were not integrated, the brand’s consumer experience was hampered by low inventory turnover and out-of-stock issues. To solve this challenge, Li-Ning decided to deploy a cloud-based commerce suite across a number of its stores within four months, which paved the way to higher sales volume.
Now that its order management services are aligned, the brand has acquired competitive online-to-offline capabilities. Online orders are instantly sent to physical stores and warehouses, creating a more efficient order fulfillment process. At the retail stores, customers can simply place an order using a tablet and track it via SMS notifications – even if the product is out of stock at the store.
Strategy #2: Trade management
Henkel Beauty Care is pivoting quickly to keep up with a rapidly changing market and maintain its position as a worldwide, leading beauty business. Serving both retail and professional markets, the company is using a more straightforward approach to traditional and modern trade promotions to standardize its processes and provide quick access to data-driven insight.
By trading in its legacy system of 16,000 clicks with a modern application that requires only one, the multinational consumer goods company is positioning its partners and retailers to make intelligent purchase decisions that meet consumer demand. From profitability, ROI, and location-based engagement to emerging market shifts, everything Henkel and its retailers should know to stay competitive is available at their fingertips, giving them more time to focus on customers instead of crunching data.
Strategy #3: Retail execution
The Adhesive Technologies unit at Henkel is changing its game with online and mobile shop and field sales applications. The company wanted to give its sales representatives the tools and insights necessary to optimize their relationships with retailers and business buyers. To optimize customer interactions and time on the road, Henkel decided to deploy a mobile app powered by a cloud platform and integrated with a next-generation CRM solution and an optimized geographic database connector.
In addition to reducing travel time and increasing productivity and efficiency, sales representatives can now check the conversion rate of their promotions and collect product information during store visits. More importantly, consumer needs and habits are captured and analyzed to open new opportunities for cross- and upselling.
A win-win collaboration based on data and actionable insights
By capturing, sharing, and applying intelligent and real-time insights, leading consumer goods companies can transform event-driven interactions into proactive plays that monetize data-driven capabilities and leverage core competencies in new ways. For brands and their retailers, such an approach can help increase their focus on higher-value tasks to evolve their business practices together as the market shifts – from innovating business models to taking on emerging opportunities for new revenue streams.
Get your consumer products business on a trajectory of accelerated growth without tipping off your competitors. Read our industry point of view “The Crossover Effect: Positioning Consumer Products Companies on the Growth Path.”
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