Rethinking CPG in-store execution for COVID and beyond
Consumer products companies need to adjust their retail execution for new shopping habits shaped by the pandemic. Here are some ideas.
Conventional pandemic-era predictions foretold that consumer spend would continue its relentless migration to the web – and thereafter remain. But guess what? There’s mounting evidence that consumers are returning to brick-and-mortar stores.
For CPG brands, this means their retail execution process for physical stores is as critical as ever.To cite just one piece of example of the coming resurgence of brick-and-mortar retail, take a look at the Deloitte State of the Consumer Tracker, which has been polling consumers over the past year to gauge their changing sentiment and behavior.
Although there are some modest differences among the 19 countries surveyed, as well as among age groups, what’s most striking is the consistency across categories:
- Household Goods: 78% intend to shop in store, vs. 15% online
- Groceries: 81% plan to shop in store, vs. 12% online
- Clothing: 59% in store, vs. 29% online
- Furnishings: 65% in store, vs. 25% online
CPG retail execution process
The implications of these findings are many, but perhaps the most immediate is that consumer products companies need to redouble their efforts around their retail execution process.
For one thing, post-pandemic shoppers have in no way scaled back their expectations for in-store experience. When they go to the store, they expect to see the product they’re looking for quickly, and at the right price. If they encounter an empty shelf or have to hunt for a product, they’re apt to switch to a competing product.Even though the evidence suggests that final purchases will largely take place in stores, execution remains very much a cross-channel affair. Among other things, this means that the in-store brand experience needs to reinforce the one projected online, in terms of:
- Expected value (pricing)
- In-store displays
- Presence of promotions
- On-shelf availability
Delivering on the brand promise
In order to deliver on this level of in-store brand experience, consumer products companies need to do a number of things – and do them extraordinarily well.
An effective retail execution process involves assessing a set of KPIs at each store location, and tracking changes to those metrics from visit to visit. Armed with these insights at the store level, account managers can team more effectively with retailers to help ensure that shoppers’ in-store experience matches what they expect based on the online brand presence.As account managers make use of digital sales tools to measure in-store execution, collaboration between the consumer products company and retailers are informed by a common understanding of store performance. In the past, many sales teams relied on often error-prone notes and spreadsheets.
A streamlined, automated approach also frees account managers from the laborious process of collecting and maintaining manual data. That way, they can focus more on genuine collaboration with the retailers for stronger execution.
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Visibility: The linchpin for a successful retail execution process
With better information in hand, an account rep in the field has greater visibility into key metrics, which empowers them to make better decisions in real time. Sellers can then ensure that shoppers have the best possible in-store brand experience.
Armed with modern digital sales tools, field sales reps have visibility into things like store KPIs, order trends, and overall shifts in store performance. Based on this data, they can optimize their routes to focus on the stores that require the most immediate attention, boosting the value of each trip.
For CPG brands, leveraging a data-driven approach not only improves sales performance, but gives them the agility to adapt to changing buying patterns. They make lasting customer connections by providing ideal retail experiences, in both the online and physical worlds. And they put themselves in position to grow for years to come.
