How To Overcome the Top 5 Hurdles CPG Companies Face

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We work with CPG companies to successfully transform their traditional marketing teams into high-functioning digital marketers, helping them drive their top-end goals: eCommerce sales growth, omnichannel experience, and reduced dependence on agencies.

When companies come to us, they’ve often been trying to transform their marketing functions on their own — and, despite their best efforts, do not see the results they want. Their teams may demonstrate a grasp of digital concepts or familiarity with new data-driven technologies, but those wins aren’t yet translating to meaningful changes in digital goals.

What holds these CPG companies back? Well, there are telltale trends. In our experience, overcoming these five common hurdles helps clients make their marketers successful.

Hurdle #1: Investing primarily in engineers and data-driven specialists to drive transformation.

Naturally, your corporate transformation strategy requires engineers and data scientists to get your digital enterprise up and running. But a common mistake we see from CPG companies is focusing their investment in high-tech roles without upskilling the teams that connect to and support them. CPG companies need fluency across their organizations in order to create a coordinated go-to-market push, both across and within teams, that successfully implements modern techniques.

L’Oréal took a more comprehensive approach: they focused on driving digital literacy across 85,000 employees worldwide. Beyond focusing just on specialists, L’Oréal defined a company-wide standard for digital skills and measured all current employees and new applicants against it. For anyone who needed to improve, they provided personalized online learning paths and in-person deep-dives to provide more sophisticated training. This broad foundation of digital skills enabled L’Oréal to coordinate digital strategies across teams so that they could leverage data to personalize recommendations and, ultimately, grow their eCommerce business to 25% of total sales.

Hurdle #2: Relying on historical insights about your customer (and how a household brand embraced change).

Let’s say you’re a household name, and you have decades of experience in successfully reaching your target audience. So it makes sense to keep what’s not broken, right? Maybe not. Today’s consumers are demonstrating seriously rapid changes in consumer behavior, with the pandemic accelerating the shift to eCommerce in five years. That’s not to mention evolving gender norms, family life-cycles, increasing prevalence of DINKs, greater demand for sustainability and social responsibility, in addition to rapidly-accelerated digital platform usage. Today’s customer-centric strategy requires an ongoing connection with consumer trends and an openness to go against the “time-tested truths” of a traditional CPG. 

One of our Fortune 100 CPG clients is known for its best-in-class brand management, which challenged GA to help it use digital techniques to improve its marketing function. This client invested in proficiency-focused bootcamps designed to build hands-on skills per digital channels for both practitioners and SMEs, giving marketing teams hands-on training in digital marketing specialties like eCommerce. Investing in modern, customer-centric marketing skills helped them to better deliver on strategic initiatives to compete with new “digital native” brands. 

Hurdle #3: Under-leveraging data… and not generating insights.

A key piece of that customer-centric mindset requires generating ongoing data-driven insights about what your specific customers want and do. However, the best approach to data-driven marketing requires coordination across functions. For example, “Is my purchasing data demonstrating niche markets I can engage with tailored marketing messaging? Or, “What are the customer engagement channels that drive consumers to buy products in-store?”If the systems for tracking these datasets do not talk to each other, you miss out on opportunities to identify channels for improvement. A global children’s entertainment and toy company honed in on data-driven marketing as an area to improve their sophistication. Through GA’s “Data-Driven Marketer” workshop, they honed skills on optimizing digital spend by focusing on the highest ROI channels, reducing reliance on data teams by de-siloing access to data, and choosing the right KPIs for their goals, helping them interpret data and reveal insights for data-driven decisions more independently. 

Hurdle #4: Overreliance on agencies.

A common issue among CPG clients is that they don’t have the in-house skills for key digital functions, like using MarTech, generating data-driven insights, or interpreting marketing analytics, so they outsource a bulk of their digital marketing to agencies. This leaves brands facing a “black box” in terms of what their agency partners are doing, without the skill set to collaborate deeply or specify strategic areas for partnership. This often results in brands not owning the data or strategies needed to close the loop and drive innovation. By building up capabilities and possibly taking some functions in-house, you can better own your customer journey.

For a global CPG master brand looking to reduce agency dependence, GA helped them build internal capabilities to improve collaboration. Through GA’s Getting the Most Out of Your Creative Partnerships workshop, the marketing team worked to increase their skill at using data to generate actionable customer insights, developing personas, charting their customer journey, and pitching creative briefs. By taking the drivers’ seat with these capabilities, CPG companies can have more leverage in making partnerships successful.

Hurdle #5: Underdevelopment of key functions.

Even as you build towards this closed-loop control, any weak link can pull down the opportunities for advancement in your marketing organization. What good are great customer-centric insights if you only get them from your agency at a single point in time, and you don’t have the tech infrastructure to maintain and update them? Or the MarTech knowledge to activate them and drive results?

This is where it is critical to not only have broad digital literacy and strong core marketing skills (like leading with customer insight and applying data-first marketing) but to invest in cutting-edge instruction of marketing specialties. Digital functions like eCommerce, SEO, and Content Marketing evolve at a rapid clip, and staying up-to-date on them is key to applying the future-proof skills that will take your team from skilled traditional marketers to fluent and innovative digital marketers.  

That’s a wrap!

Getting over these five hurdles can be the difference between maintaining the status quo (despite your talent investment efforts) and seeing a noticeable improvement in your KPIs and bottom line. At GA, we specialize in helping CPG marketers make a deep, sustainable transformation in their marketing functions across insights, creative, channel activation, data usage, and marketing technology.

Want to learn more about GA can help you future-proof your marketing teams today? Get in touch or download our marketing product catalog