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Winning in Digital

Companies must adapt to digital disruption.

Digital technologies are fundamentally reshaping both consumer demand and competitive dynamics in the consumer products marketplace. At the same time, these digital innovations are restructuring how consumers shop for and buy products. The result: retailers and manufacturers need to adapt to the digital challenge—quickly. Winning players are redefining their channel strategies and seizing competitive advantage by responding to digital disruption and exceeding consumer expectations.

Disruption with No End in Sight

The fundamental changes that digital technologies bring to today’s shoppers only hint at what’s to come. Potential future disruptions include:

  • An even more complex web of interconnections
  • Shopping blended into everyday routines and happening anytime and anywhere
  • Subtle influences exerted through the consumer’s engagement across many channels
  • Streams of purchases in real time—the basket ceases to exist
  • Shopping service provides recommendations and makes decisions for the consumer

The Evolution of Online Advertising

Advanced targeting and engagement techniques represent a significant change in digital advertising’s effectiveness. To get the best performance, advertisers need to employ three kinds of targeting:

  1. Site-Based Targeting. Displays ads based on the content of the website. Good for scale.

  2. Standard Behavioral Targeting. Displays ads based on consumer’s previous online behavior. Good for specificity.
  3. Advanced Behavioral Techniques. Work across digital channels and are even more data driven. Good for scale and specificity.

Seven Steps to Omnichannel Success

The rise of the omnichannel consumer creates new opportunities for consumer packaged goods companies. Here’s how to profit from this important trend.

  1. Get personal. Use two-way channels and better data to develop proprietary and mutually engaging relationships with individual consumers or microsegments of a market.
  2. Start a new brand game. Consumers' thirst for knowledge and rapidly changing shopping habits prevent brands from sustaining a compelling image through carefully crafted advertising alone. Brands still matter, but to stay relevant, they must authentically represent the company's core offer.
  3. Master the data. As sources of data and digital footprints expand exponentially, aggregating and leveraging consumer data becomes a competitive advantage.
  4. Out with the old. Resources are shifting from traditional television, print, and circulars to online content development, social media, paid search, and mobile offers. Few are moving far or fast enough.
  5. Integrate fully. Digital is not a department or function; it’s integrally linked with all elements of a business system. Companies must invest in new configurations, processes, skills, and measures across the enterprise.
  6. Build a digital culture. An organization’s culture must constantly explore new personal behaviors, hardware, and digital platforms. Be digitally immersed and nimble.
  7. Take charge. Own the consumer relationship. Remain emphatically consumer focused, service minded, and channel agnostic. Organizations must be willing to influence, engage, sell, deliver, and support consumers anywhere and anytime.
Consumer Products Industry
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