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    Home IT Management
    • IT Management

    CPG Industry Faces Customer Engagement Challenges

    By
    eWEEK Staff
    -
    November 6, 2017
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      PrevNext

      1CPG Industry Faces Customer Engagement Challenges

      CPG Industry Faces Customer Engagement Challenges

      Digital technology changes everything. For consumer packaged goods (CPG) companies, this fact has become painfully clear. A recent research report from global technology services firm NTT Data Services, “Friction Challenges for the Consumer Packaged Goods Industry,” determined that consumer-facing website experiences impact the bottom line. The firm studied 15 leading CPG Web sites—including Anheuser Busch, Coca-Cola, ConAgra Foods, Dean Foods, General Mills, Kraft-Heinz, Mondelez, Nestle S.A., Pepsico and Unilever N.Y.—and found that significant differences exist in areas such as product search features, information transparency and purchase availability. Not surprisingly, these factors directly affect consumer attitudes and purchasing decisions. Here’s a look at some of the key findings.

      2Leaders vs. Laggards

      Leaders vs. Laggards

      In terms of their websites, the leading CPG companies surveyed have 31% greater asset turnover and 13% higher gross margins compared to low-scoring organizations.

      3Complications Matter

      Complications Matter

      Low-scoring CPG websites averaged 16 more friction points for consumers to complete their goal. Leaders averaged only four steps.

      4Distraction Is Deadly

      Distraction Is Deadly

      While both high- and low-scoring CPG websites engaged in cross-selling and up-selling throughout transactions, the study found that low-scoring sites relied heavily on distracting pop-ups.

      5Friction Hurts

      Friction Hurts

      21% of all friction is related to technology. Lagging CPG sites had confusing navigational menus, hard-to-find search results and a high number of page refreshes.

      6Confusion Kills (Sales)

      Confusion Kills (Sales)

      16% of CPG websites with high friction presented confusing product information and didn’t properly guide users to reach their goals.

      7Top Performers

      Top Performers

      Nestle S.A. avoids pop-ups that lead to frustration and misdirection. Conagra Brands makes it simple to find product information. JBS S.A. delivers fast-loading web pages and a streamlined site hierarchy.

      8Recommendation: Compete Effectively

      Recommendation: Compete Effectively

      Don’t abdicate the customer experience to competitors and partners. There are too many formats and opportunities for failure that negatively impact the brand.

      9Recommendation: Simplify Engagement

      Recommendation: Simplify Engagement

      Eliminate noise from the customer journey. Simplify customer engagement by focusing on core goals and transactions.

      10Recommendation: Deepen Brand Loyalty

      Recommendation: Deepen Brand Loyalty

      Develop deep relationships and brand loyalty through meaningful engagement on the customers’ terms and through the channels they prefer.

      11Recommendation: Personalize the Experience

      Recommendation: Personalize the Experience

      Introduce a personalized experience that seamlessly blends CPG with retail across an integrated ecosystem.

      PrevNext

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