Blog articles about Consumer Packaged Goods
- Understanding generational differences in subscription behavior is critical to success with FMCG subscription marketing and channel strategy.
- Millennials have more subscriptions than any other generation.
- 80% of Millennials said they subscribed to make their life easier.
- Millennials use introductory offers and often stick with a subscription after being gifted it.
- Keeping Millennials requires a subscriber-centric strategy that includes a subscription hopping portfolio.
- SKIM uncovered insights about subscription use, attitudes, and expectations with 16,000 consumer interviews in five countries.
For CPG brands and retailers, the subscription model offers tremendous opportunities for recurring revenue and consumer connection. But what is fueling consumer choice in the subscription economy, specifically for FMCG products, and how can brands capitalize on it?
It’s tempting to assume that consumers choose product subscriptions primarily to save money (think Amazon’s Subscribe & Save). However, our Subscription Lifestyle research revealed otherwise: in almost every category, consumers, especially those with multiple subscriptions, valued other subscription benefits more than a lower price.
Do you know what drives consumer choice for product subscriptions in your category? Is it convenience, cost, quality, or surprise? Getting it right is critical for your Go To Market strategy.
Our latest research explored consumer behavior and attitudes towards subscriptions across a variety of CPG categories. The results have revealed some surprising factors driving consumer decisions in these categories.
Read on to learn what subscription benefits consumers value most and the marketing implications for your brand
Have you ever opened your door and wondered: “What is in the package that just arrived?” Not since the early days of Netflix, when those red envelopes containing DVDs arrived in the mail, have so many consumers been confronted with a huge question mark at their doorstop.
This shopper phenomenon has been caused by an explosion in digitally enabled subscriptions for nearly every imaginable FMCG and Direct to Consumer category, combined with the popularity of Amazon Prime Subscribe and Save.
How is your company tackling the subscription economy? Do you know how the subscription lifestyle is impacting shopper journeys in your category?
Perhaps your team is already experimenting with a direct-to-consumer offer, or maybe you’re in the early stages of mapping out your subscription strategy.
Either way, it’s important to understand exactly how subscriptions are shifting consumer behavior and perceptions.
Read on for our latest insights on the ubiquity of the subscription lifestyle and five issues your team will want to address to succeed in this channel.
The role of empathy and surprise in consumer interactions
Market changes are constant and inevitable. Your competition isn’t slowing down, and you must react quickly and strategically. When information and innovation travel fast, the costs of a late response are high.
Like many marketers today, you’re forced to make fast decisions and quickly adapt brand strategies.
How can you ensure your communications, products, and services deliver on your brand promise – surprising and delighting consumers?
Mistakes may be inevitable when it comes to consumer experiences, but how can you best rectify them?
We recently conducted research to answer these questions and explore the role of emotions in consumer experiences and decision-making.
How can a global organization improve strategic decision-making, align all stakeholders around an action plan, and accelerate deployment?
These were the exact questions Danone faced last year in its plant-based acceleration unit of the specialized nutrition division.
As one of the top global food companies, adapting to changing consumer behavior is always a key challenge for Danone. Consumer demand was rising for plant-based products. Danone wanted to continue to grow infant nutrition by leveraging plant-based assets from the company. Danone’s global strategy and insights team saw an opportunity to use business wargaming to help accelerate strategic decision-making and growth for its plant-based portfolio.
Business wargaming is a data-driven, agile decision-making approach that helps companies make faster and more holistic and bold decisions.
I recently sat down with our clients at Danone to discuss their new approach for agile, cross-functional and collective decision-making. Read on to learn how Danone used business wargaming to transform strategic decision-making and lead the business into a promising new market.
Why do people choose one product or service over another? What needs or objectives are tapped into when you consider buying or recommending one brand over another?
Whether your brand targets consumers or professionals, understanding how decision behavior works and systematically applying its principles can help you build more effective strategies to drive customer acquisition, brand loyalty and continued growth.
We recommend you tap into “habitual” behavior to reinforce positive habits or break the ones that don’t benefit your brand and analyze “deliberate” behavior to assess how, where and when your brand can intervene.
Here we explain how decision-making works and the behavioral steps that are involved in making choices. Read on to learn how leveraging these insights to reinforce or disrupt habits can help your brand grow.
The COVID-19 crisis and the Corona crash are shaking the context for consumer decision behavior. As a result, the context for net revenue management (NRM) has also been disturbed for consumer goods companies.
Companies must adapt revenue strategies to the new situation, at the same time as consumers are adapting to “the new normal.” To be successful, you need to anticipate and influence consumer decisions in a changing environment. This holds true in times of normalcy, but especially during the recession to come.
Although the COVID-19 crisis is not yet over, learnings from previous crises and knowledge of consumer behavioral frameworks mean we can map out consequences for net revenue management strategies.
So, what should you consider in planning your next moves?
Consumer behavior is usually embedded in daily habits; sometimes consumers make more deliberate decisions. COVID-19 triggered a dramatic change in the context of consumer decision making: Many daily habits have come to an abrupt halt; more decisions are now deliberate.
Your company is probably feeling the immediate impact of these behavioral shifts and you may be charged with adapting short-term marketing strategies accordingly.
COVID-19 has radically changed the context in which we make decisions, disrupting many habits. No one can predict if the behavioral shifts will last or what the recovery period will look like.
Online shopping and media consumption will undoubtedly continue to grow (as it was pre-COVID-19) … but to what degree? Will brand-loyal consumers who switched brands due to limited stock eventually return?
FMCG revenue professionals are challenged with creating a win-win-win situation: Provide consumers with the right product at the right price, create value with retail customers in challenging times, all while delivering top and bottom line growth. And all of this while working within legal limits in countries that prohibit resale price maintenance.
Leading consumer goods companies are increasingly adopting a net revenue management (NRM) approach to tackle this challenge. By applying a structured approach to analytics and encouraging open-mindedness, companies like Unilever are maximizing their net revenue and profits.