CPG 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.

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.

Complications Matter

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

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.

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.

Confusion Kills (Sales)

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

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.

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.

Recommendation: Simplify Engagement

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

Recommendation: Deepen Brand Loyalty

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

Recommendation: Personalize the Experience

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