In the age of rapid acceleration, companies are making every attempt to transition from feeling- to fact-based, but it is proving to be anything but simple. Most data-driven transformations are nipped in the bud because they aren’t paired with shifts in established business models and processes. To put it simply, to make successful changes, CPG companies need to cultivate an entire data-driven culture.
“Companies with winning data-driven cultures have data-minded leaders. In these organizations, whether they’re legacy CPG brands or native digital newcomers, fact-based decision-making is not only encouraged, it’s expected.”- Forbes
Here are some steps which can help a CPG organisation instill a data driven culture:
Step 1- Ask the right questions
Everyone aspires to be data forward, but do they ask the right questions?
Here are some questions that should not be skipped:
- Why do you want a data culture?
- What are you trying to answer with data?
- What business problems are you trying to solve?
A data driven culture encourages and fosters an atmosphere wherein all associates, from number crunchers to novices, make strategic and tactical decisions based on data. According to Nielsen, although 96% of companies report successful business outcomes from data and AI initiatives, just 24% of companies have fostered truly data-driven cultures.
Step 2: The Top Down Approach
C Level Executives and leaders have the power to influence associates to develop a positive attitude toward data.
This can be achieved by:
- Taking the first steps towards the adoption of data and analytics software
- Modeling data-driven decision-making in daily work
- Consistently communicating the benefits of new ways of working.
It has been widely established that data-forward behaviors from leaders have trickle-down effects. This is because associates want to communicate effectively with leaders and they feel that the common language is the data language.
Step 3: Own your Data
For CPG companies across the globe data is becoming the cornerstone for a sound AI strategy. Hence it is vital that they work towards data ownership. According to Forbes, most CPG brands don’t own the customer relationship–their retailers do. In an increasingly data centric world, customer insights form the very foundation of seamless, personalized shopping experiences, CPG brands need to find ways to regain control over customer relationships.
Step 4: Unlock the value of data with the help of Use cases
Richer data and a broader examination of contextual cues can allow CPG companies to significantly expand their targeting tactics.
“For CPGs, acquiring and activating consented consumer data at scale represents a clear but untapped opportunity. It can drive 5% sales growth, translating to $500 million in incremental revenue for a $10 billion company.” – Findings of a research conducted by the Boston Consulting Group.
Here are some ways to unlock the value of data with the help of some use cases:
- Capture Data Organically by understanding the customer’s journey, key purchase drivers to identify unmet needs or pain points. Organically captured data can also help them determine where they have an advantage in meeting the aforementioned needs.
- Forging a data partnership with a retailer will help CPG companies gauge the effectiveness of their own marketing spending. It will also help them to assess the performance and ROI of different types of campaigns and promotions.
- Advanced Contextual Targeting can help CPG companies move beyond basic audience and demographic information to leverage all types of demand levers in order to identify the signals that most accurately predict and boost sales.
Transforming your company’s data culture is no mean feat, but shifting data attitudes can be more accessible when you have the right tools. Emly. Labs facilitates non-data science experts to leverage AI as a tool in their domain of expertise without getting into the complexities of AI.
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