3 Ways Consumer Goods Companies Should Use Consumer Data
July 26, 2017
Although there is constant demand for new products, only 15% of newly introduced consumer goods will still be around in two years. So, how do consumer goods companies create innovative, new products that appeal to consumer-changing preferences? And how do they stay ahead of competing brands?
These are the types of questions that can be answered when consumer data is used properly – data like ratings and reviews, survey feedback, contact center notes and social media. Some brands have been able to save $3 million just from using consumer data as a replacement for traditional market research. The possibilities of using consumer data are almost endless. Here, we dive further into 3 ways that Consumer Goods companies should use consumer data:
Instead of developing a new product and then trying to convince consumers to buy it, Product Development teams can use aspirational feedback from contact center interactions, ratings and reviews, and social media. For example, this would be consumer feedback that includes phrases such as, “I like”, I wish”, “I would like”, or “would work better if” to develop products that consumers already show interest in buying, or to improve on existing products. Teams can also analyze consumer conversations about competitor brands to help strengthen product differentiation.
Through consumer feedback, one Consumer Goods company identified an issue with packaging that was causing returns to the retailers – an issue they would not have known about otherwise. The company improved the product’s packaging – only $1 per unit incremental cost – but it reduced returns of that product by half.
Shelf space is finite but the number of products has quadrupled. Product Teams should be analyzing feedback data from that retailer’s own customers – the insights here can be used to justify product placement. Additionally, Consumer Goods companies toying with going direct can improve their understanding of what drives sales.
At one Consumer Goods company, there had been enough new product features added to warrant a re-naming of a multi-million-dollar product with a 12-year legacy. However, the common thought was that consumer sentiment for the product line was very positive – so positive in fact that the company didn’t want to change anything. After digging into consumer feedback, though, they found that consumers actually rated the product very low. So, they moved forward with renaming the product, and the newly named product line has since broken every sales record at the company.
Research teams can combine their existing survey results with rich, near-real time feedback consumers provide in emails, chats, calls, ratings and reviews, and social media. They would literally be able to keep up with every comment.
When combined with demographic and sales data, they would now be able to deliver a single, near real-time, global view of a given topic or brand. And they may even find they can reduce their spend on expensive surveys in the process.
One global Consumer Goods company faced three key challenges with their current market research surveys:
- Expensive and time-consuming to run
- Only conducted once a year, did not offer a timely perspective and only analyzed a small sample of data.
- They weren’t able to use their current social media tool to analyze data across multiple consumer interaction touchpoints.
Working with Clarabridge, they now analyze consumer feedback across their own products and their competitor products from more than 40 sources on a weekly basis: this adds up to more than 2 million reviews analyzed each year. And, they were able to use this near real-time consumer feedback analysis to replace their market research surveys, saving $3M in the process.
Consumer Goods companies should use consumer feedback to make strategic business decisions around product innovation & development, product marketing, and market research. Making business plans based on anecdotal consumer opinions poses an unnecessary risk – especially when your consumers are already giving you all of their feedback, whether this is on social media, rating and review sites, or even chat data. A 1-point increase in review ratings can drive a 10% increase in spend. Imagine being able to use consumer data to actively move that needle and stay ahead of the competition. To learn more about how to do this, read out eBook The Magic of Consumer Feedback for Consumer Goods Companies.