Consumer Packaged Goods (CPG) companies are at the cusp of a significant digital transformation, backed by data-driven strategies. There is severe competition in this space from external players like online merchants, especially since the advent of the pandemic. The top players in the market are constantly on the lookout for innovative ways to improve their business strategies and adapt to the rapidly evolving consumer trends in the world today.
AI-based analytics is one such strategy that has gained popularity in recent years. CPG companies can analyze that large reserve of data available in CRMs, ERPs, and other tech solutions like customer demographics, brand loyalty, frequency in shopping, and completed transactions, to churn out solutions based on current trends and customer pain points.
CPG Data Analytics – How can it help?
From strategizing trade promotion management to humanizing artificial intelligence for the end salesperson, the approaches to digitization are numerous. One among those is demand forecasting using AI-enabled predictive tools. These are an integral part of CPG data analytics and can help company leaders make better-informed decisions in real-time.
CPG Artificial Intelligence: The key to better profit margins
Forecasting Consumption:
Analytics tools can help CPG companies forecast and visualize different scenarios and their subsequent business projections. This would help company leaders optimize their supply chain.
Introducing Innovative Categories:
Analytics data helps companies introduce new categories into the market depending on the economic climate. Keeping a close watch on market conditions helps CPG companies finetune their strategies for maximum impact.
Trade Promotions Management:
Trade promotions are guaranteed to be a success if they are based on analytical insights from past data. This data helps CPG companies set established goals to measure Trade Promotion Effectiveness.
Revamp Shelf Assortments:
Deciding on the right assortment of products in a store with the help of artificial intelligence will drive revenue growth and increase customer loyalty.
Inventory Optimization:
Companies can leverage CPG data analytics solutions by promptly identifying no stock or understocked products and alert operations teams to restock. Having the right products at the right time can go a long way in improving customer loyalty and boosting sales.
When companies choose to add CPG analytics consulting into their fold, it can yield promising transformations in their performance and revenue. However, utilizing the data available to its optimal potential may be a challenge. Unearthing the hidden competitive advantage using CPG consulting solutions is the key to moving ahead of the curve by building stronger customer connections. However, all this is possible only by partnering with the right analytics partner.
Introducing Tredence, an AI engineering and data science consulting company that can spearhead digital transformation for CPG companies by offering customizable white box solutions that will assess the overall performance, identify areas of improvement, and bridge the gaps with world-class CPG analytics solutions. Reach out to our experts for a free consultation to improve the use of data in your CPG organization.
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