FMCG digital transformation

FMCG digital transformation
21st May 2019

How is digital transformation driving results for FMCG brands?

Digital technologies are disrupting and evolving consumers’ behaviours and expectations. We are now accustomed to omnichannel experiences, whether it’s using customer loyalty apps whilst visiting our favourite coffee shops or relying on our voice assistants to provide us recipe suggestions with household brands.

Although some brands are embracing elements of FMCG digital transformation, overall the industry needs to be proactive with their digital marketing strategy. Those that choose not to actively takes steps to innovate and invest in their FMCG digital transformation risk falling behind their competitors and even losing out to new entrants to the market that are prioritising changes in consumer expectations and crucial aspects of digital marketing such as, search marketing, email marketing or mobile optimisation.

Uber and Netflix are a good example of this. By taking note of the consumer pain-points both of these organisations disrupted their markets by creating new solutions that focus on an overall better user experience.

Our 2019 FMCG Digital Census reflected this for the UK’s top 100 brands. Brands that have considered digital marketing as part of their overall strategy benefit from a variety of opportunities that organisations without a clear digital roadmap fail to take advantage of.

FMCG digital

What is driving FMCG digital transformation?

Profitability and efficiency

It’s not just consumer behaviour that is alerting brands to re-evaluate their FMCG digital marketing strategy. It’s having a comprehensive view of the importance of digital technology in today’s markets and how it can help brands to achieve their business goals.

This can include objectives across departments, including HR and financial goals. Brands that undergo digital transformation are likely to see internal benefits such as an increase in profitability by reducing their costs and Increased efficiency from making workflows faster. Utilising aspects of digital marketing such as paid media, search and content marketing can help to open new revenue opportunities.  Email marketing can give brands an average ROI of 122%, a channel that we found the top 100 UK FMCG brands are overlooking in our FMCG Digital Census.

Improve customer experience

FMCG digital transformation doesn’t necessarily mean being digitally centric, but it should involve becoming more customer-centric. Brands that make the most of their digital experience platforms and wider channels have a plethora of valuable opportunities to get to know their customers. It’s reported that 80% of consumers say they’re more likely to buy from a company that understands their purchase history and treats them as an individual. For FMCG ecommerce, platforms like Sitecore can offer highly personalised user experiences, with the Sitecore features and marketing tools that securely store customer data that can be used to produce customer personas for highly targeted marketing campaigns and content.

Creating a seamless transition for consumers between offline and online experiences is a key part of FMCG digital transformation. Consumers expect the same level of quality of design, customer service and accessibility when they find their favourite brands online as popping into a local store. 38% of online consumers claim that they will stop interacting with a website if the layout is unattractive, whilst 39% will stop using a website if images don’t load quickly.

The next steps in your brand’s FMCG digital transformation

We’ve been helping enterprises with their digital transformation strategy for over 20 years. If you want to know more about how your business can grow, get in touch with our team of digital marketing experts and Sitecore specialists to discuss your organisation’s digital goals.