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.

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.

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

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.

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.

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

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.

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

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

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

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