Blog articles about Consumer Packaged Goods

Product subscriptions: 3 surprising reasons behind consumer choices

Product subscriptions: 3 surprising reasons behind consumer choices

By Mike Mabey and Brady Silva on April 11, 2022

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

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The subscription lifestyle opportunity: Create direct relationships with customers

The subscription lifestyle opportunity: Create direct relationships with customers

By Mike Mabey and Brady Silva on March 21, 2022

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.

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Mastering consumer experiences using the power of emotions

Mastering consumer experiences using the power of emotions

By Bleona Bicaj on February 1, 2022

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.

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Danone’s secret weapon for agile decision-making: Wargaming

Danone’s secret weapon for agile decision-making: Wargaming

By Nicole Gardere on September 14, 2021

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. 

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How brands can apply decision-behavior theory to drive growth

How brands can apply decision-behavior theory to drive growth

By Marcel Slavenburg and Andrea Podobnik on August 28, 2020

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.

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Pricing and NRM success strategies: Adapting after the crash

Pricing and NRM success strategies: Adapting after the crash

By Dirk Huisman and Robin de Rooij on April 29, 2020

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?

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How brands can be relevant during the COVID-19 crisis

How brands can be relevant during the COVID-19 crisis

By Arne Maas on April 8, 2020

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.

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Marketing strategies post COVID-19: What you should know about decision behavior

Marketing strategies post COVID-19: What you should know about decision behavior

By Karin Lieshout on April 2, 2020

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?

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How Unilever is driving growth opportunities with NRM

How Unilever is driving growth opportunities with NRM

By Joyce van Heeswijk on February 12, 2020

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.

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How Nestlé is shaking up the coffee shelf with Starbucks

How Nestlé is shaking up the coffee shelf with Starbucks

By Joey Ophof on November 20, 2019

Exploring a virtual shelf approach to launching a premium brand

In 2018, Nestlé signed a $7.2 billion deal to market, sell and distribute Starbucks’ packaged products outside of the company’s cafes, providing Starbucks at home. With high brand recognition, Starbucks would clearly make an impact at the coffee shelf. However, one of Nestlé’s European insights team saw an opportunity to rethink the crowded grocery store shelf to drive even more growth – for Nestlé and its customers.

Albert van Meeteren, Nestlé’s Head of Consumer and Shopper Insights and Analytics, wanted to see how they could best launch Starbucks in a “new and innovative” way in Dutch supermarkets by focusing on in-store execution.

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