Understanding the Importance of Customer Experience in the FMCG Industry
The customer experience commences long before the customer even picks up the phone, extends beyond reading ads or initiating chats on social media. One such domain where this begins is the Fast-Moving Consumer Goods (FMCG) industry. But what exactly does the FMCG industry entail?
Today, the landscape of perishable consumer goods has undergone significant changes, particularly after the pandemic, owing to the rapid growth of e-commerce, advancements in the delivery sector, and the dramatic escalation of technology. However, how does this relate to the customer experience, and what precisely is the importance of customer experience in this particular industry? Furthermore, how can it be enhanced and developed for the better?
What are Fast-Moving Consumer Goods?
The definition of Fast-Moving Consumer Goods (FMCG) according to the Harvard Business Review is as follows:
“FMCG refers to products that are purchased daily, have a low price point, do not have a long shelf life, or are consumed quickly. These products are commonly found in grocery and retail stores and include items from the food and beverage category.
FMCG items are known for quickly selling out from stores due to their high and continuous demand. They can be broadly categorized into two groups: rapidly perishable commodities like meat, dairy and its derivatives, vegetables, fruits, and bread, and commodities that can be stored for a maximum of one year, such as canned food and candies.”
How Does the Customer Experience Relate to the FMCG Industry?
The customer’s experience in the fast-moving consumer goods industry encompasses a series of interactions and behaviors that the customer engages in before and after making a purchase. It also includes discussions with others about the product’s quality, features, drawbacks, and more.
Importantly, the customer experience does not conclude once the purchase is complete, even if the customer has been using the product without any issues for an extended period. There is always a possibility that a problem might arise during product usage, prompting the customer to reach out to the manufacturer or brand for assistance.
The way the customer is treated when seeking help or reporting an issue significantly influences their perception of the overall experience. Hence, it becomes vital to prioritize effective communication with customers throughout their journey, ensuring a positive impact that endures over time.
Navigating Customer Experience in the Consumer Goods Sector
In the consumer goods industry, brands need to go beyond traditional marketing tools and software to create a meaningful impact on customer experience. The key objective is to undergo a digital transformation that places customers at the center of the business strategy.
Adopting a customer experience management mindset allows companies to prioritize coordinating and personalizing the entire customer journey. This strategy empowers businesses to scale their efforts across multiple channels in real-time to consistently enhance and manage the overall customer experience.
Why Customer Experience Matters in the FMCG Sector
Managing and enhancing customer experience effectively goes beyond superficial measures of simply prioritizing customers and making technology appear more humane. It involves creating scenarios where both brands and customers benefit.
In today’s fiercely competitive global market, customer experience has emerged as a critical differentiator for all types of businesses. Regardless of the ultimate goal of a company, whether it’s generating more leads, increasing sales, or fostering long-term relationships, customers also stand to gain significantly. They receive more personalized experiences, which leads to greater satisfaction and stronger, lasting connections with the brand.
How Customer Information Shapes Customer Experiences in the FMCG Sector
One of the primary concerns for brands specializing in fast-moving consumer goods is how to deliver an exceptional customer experience and understand the customers’ needs to fulfill them. This challenge is prevalent among major companies striving to maintain customer satisfaction.
Remarkably, 76% of consumers expect companies to be attentive to their needs and issues, promptly addressing them and providing appropriate solutions. To meet these expectations, brands should leverage the data they have collected, utilizing methods like 360-degree customer view or other tools to gain a comprehensive understanding of their customers’ preferences and pain points.
To enhance the customer experience in the fast-moving consumer goods industry, companies can follow these steps:
Return on Investment (ROI) for Marketing
Marketing Return on Investment (ROI) is a critical indicator for understanding client needs and evaluating the effectiveness of a company’s efforts. It is directly linked to customer satisfaction, meaning that as ROI increases, so does customer satisfaction, indicating successful customer targeting.
To enhance their marketing strategies, FMCG companies can collect extensive data from various customer touch points, including sales points, social media interactions, and recent purchase history. This data allows them to launch personalized marketing campaigns that better resonate with their target audience.
Personalized communication with customers, achieved through channels like email and other means, further enables companies to meet customer needs and draw their attention to specific products.
For instance, brands can tailor emails to customers who have purchased a particular product, inviting them to explore relevant items with links to special offers and discounts. These messages should be crafted with a focus on addressing customer needs and pain points rather than just pushing for purchases.
The customer is inundated with a vast number of advertisements and promotional messages for perishable consumer products on a daily basis. However, what if these messages were intelligently and accurately directed, relying on customer data rather than random promotions that lack any basis in numbers or data?
By utilizing customer demographic data, gender, consumption behavior, and purchasing history, promotions can be precisely tailored to enhance their accuracy. This data-driven approach, combined with factors such as events, festivals, weather conditions, and specific locations, allows for strategic product promotions.
For example, during periods of high temperatures in certain areas, promotions can center around customer well-being, emphasizing the damaging effects of the sun on the skin and the significance of sun protection products in preventing serious sunburn. Meanwhile, messages for colder regions can be geared towards other suitable products.
This targeted approach enables the division of promotional efforts across all regions, customizing each promotion according to the appropriate needs and circumstances, rather than launching a single promotional campaign for all regions.
Utilizing Real-World Store Data
The rise of e-commerce has had a significant impact on physical stores, particularly accelerated by the COVID-19 pandemic. However, this transformation didn’t stop there. Real-world stores now have the opportunity to leverage customer data to categorize preferences and choices, ultimately enhancing the overall customer experience
Customer experiences are influenced by various factors, including purchase history, age, and other indicators. The challenge lies in effectively filtering and utilizing this data to optimize the customer experience.
Large companies possess vast amounts of customer data, presenting a modern and practical opportunity to utilize this information for enhancing the customer experience. Leveraging customer data plays a crucial role in adding value for customers, expanding business operations, and increasing production to meet growing demands.
Furthermore, these analytics offer comprehensive insights into customer data across various industry categories, providing real-time updates that enable more effective targeting of marketing campaigns.
FMCG companies can leverage customer data to efficiently map and optimize customer journeys. The success of this approach depends entirely on the company’s willingness to embrace the latest trends in the industry.
By mapping the customer journey, businesses gain valuable insights into their customers’ needs, enabling them to focus on customer retention and satisfaction.
Creating an Extraordinary Customer Experience in the FMCG Industry
According to a recent survey, 62% of customers believe that businesses should prioritize simpler, more flexible, and affordable customer service options to encourage them to make purchases. As customer expectations continue to evolve and aspirations for brands rise, meeting their needs has become increasingly crucial.
In light of these demands, investing in the training of technical support and customer service teams to deliver exceptional service can yield significant returns, particularly when unified strategies are developed to enhance the overall customer experience within the FMCG consumer goods industry.
Improve Your Customer Experience with Lucidya
Lucidya is dedicated to serving its customers by offering a range of services and tools that enhance their business operations. For consumer goods companies, Lucidya provides services such as:
Conducting ongoing product research, analyzing electronic and traditional purchases, and consistently reviewing customer feedback. Additionally, Lucidya assists consumer goods companies in comprehending, evaluating, and comparing their performance in various markets against their competitors.
Moreover, it identifies recent trends corresponding to different seasons and peak periods. Elevate your business to new heights by utilizing Lucidya’s exceptional services in the retail industry.
Today’s fast-moving consumer goods sector benefits from smart digital platforms and diverse operational capabilities that can effectively utilize current customer data and market conditions. One such capability is Marketing Automation, which enables businesses to streamline their marketing efforts and deliver personalized messages to customers. By harnessing this data, companies can enhance the overall customer experience, resulting in increased sales, improved customer retention, and an enhanced overall experience for the consumers.