Digital Transformation is a must for the Consumer Goods industry today. Why the Urgency? Here’s how to consider your roadmap.
The retail and consumer goods industry has been one of the most impacted by the global pandemic. The first impact, during the initial few weeks of the epidemic, was the ability to keep shelves stocked. As rolling stay-in-place and quarantine orders went into effect, consumers shifted to buying more products online. Through both of these experiences, the industry has experienced sweeping and rapid changes in consumer buying patterns in a very condensed period of time. The modifications in buying preferences have created downstream implications including financial and operational, that have forced CG companies to accelerate their rate of digital transformation and adapt to the new normal or face the possibilities of becoming extinct.
The digital transformation movement is nothing new, however, with the COVID-19 epidemic, the need for providing innovative digital experiences has accelerated. In fact, according to a recent study, 68% of global consumers are likely to buy essential goods online even after the health threats of COVID-19 subsides. This is now the new normal that the consumer goods and retail industry as a whole must face.
With the new normal here to stay, your organization will need to meet this disruption head-on to succeed today and into the future. But what are the main areas of digital improvement that consumer goods companies should prioritize short and long term?
Considerations for the SHORT TERM
- Support employee wellbeing and remote collaboration
- Intensify the focus on Business Continuity
- Accelerate alignment between brands and channel partners
- Expanded direct to consumer communication and engagement
Strategy for the MID/LONG TERM
- Maximize field rep efficiency and productivity
- New business models (i.e., Direct-to-Consumer strategies and engagement)
- Agile supply chain and demand sensing
- Establish and deliver brand relevance
Roadmap to success
Our team has been working with CG companies to tackle these challenges head-on over the past few months. Here are some suggestions to plot your course to digital transformation.
- Historically, 95% of the revenue comes from in-store channels. However, COVID is forcing a disruption to normal business operations. This is the time to re-establish key relationships through your channel partners and better understand how business is evolving for everyone.
- Don’t forget about your operations. It’s all about the supply chain and ensuring that brands can still deliver the products consumers love. Your demand in products may be changing, and the source of how they’re purchased is likely changing.
- Accelerate your digital commerce and figure out new ways to approach the market. The new normal is changing the way consumers purchase goods. You need to identify these new trends and capitalize quickly to stay in front of consumers.
Once you gain agreement on your priorities, how can you move forward?
Moving forward with Consumer Goods Cloud
CG companies must continue to adapt and innovate to succeed. Companies are already increasing their innovation during these times, and the need to execute innovative solutions will only continue. Look for future blog posts in this series as we dive deeper into how CG Cloud can help your company innovate and impact your business.
To find out more about how to start evaluating how Salesforce Consumer Goods Cloud could fit into your organization and deliver against your long term strategy, check out AllCloud’s 2 week assessment today.