Data, Advanced Analytics, and AI

FMCG has never been a stranger to data.

Brands invest millions of dollars to buy syndicated, panel, retailer POS, loyalty card data and more. In addition, they often conduct their own research, such as surveys, shop-a-longs, and focus groups to go even deeper into the minds of the people they are trying to win. The goal is to generate better insights about the behavior and preferences of both shoppers and consumers.

Big data is getting even bigger

There is real power in data. Which is why FMCGs are building their own proprietary datasets, many of which are focused on zero or first party data, meaning data collected directly from consumers.

There are many excellent sources for this kind data. A brand who wants to understand purchase behavior might use insights from their DTC channel or their own loyalty program. Brands closely monitor consumer sentiment via social media, apps, and websites. And of course there’s plenty to be learned from how consumers interact, or don’t, with digital marketing efforts.

Any consumer interaction is an opportunity to collect data which is why brands are also digitizing sweepstakes, creating ‘text to win’ moments at sporting events, and even providing free wifi to bar patrons, in exchange for becoming a “brand fan”.

It’s not just consumer datasets this industry is building. They are also creating robust demand forecasting models which incorporate more variables than ever before.

As they explore unique business models - like the metaverse - these datasets will get exponentially more complex.

What good is it if you can’t use it

All this data isn’t worth anything if brands can’t make sense of it. Which is why we’re seeing FCMG companies sharpening their advanced analytics skills and building centers of excellence (COEs) for data and insights.

Master statisticians are now working along side marketing to leverage data to better predict future brand performance. Data scientists are mining data lakes for more insightful insights. And companies are using machine learning to turn mountains of data into actionable strategies to grow their business.

If this is already happening, why is this one of my top trends for 2022? Because we’ve barely scratched the surface.

According to the Harvard Business Review, there’s $13 billion dollars of annual value yet to be unlocked by using AI. But legacy industries, like FMCG, haven’t even come close to maximizing this technology’s potential yet.

FMCG is in a never-ending race to understand consumers better, unlock profitable growth, capture operational efficiency and work smarter.

And data, advanced analytics, and AI will be the foundation to it all.

All opinions are my own and do not reflect the views of my employer or any other organization I am affiliated with.