Direct-to-Consumer strategy for CPG growth
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The convergence of Retail and CPG industries offers a distinctive chance to provide an exceptional customer experience. Traditional CPG companies are tactically shifting their attention towards the “Direct-To-Consumer” (D2C) model. This shift not only allows them to remain competitive in the constantly changing, price-sensitive market, but also enables them to establish a direct connection with their customers, obtain valuable consumer insights, and adapt to the industry’s digital transformation.
There are mainly three reasons why CPG companies are making substantial investments in the D2C model:
- Establishing Direct Consumer Relationships: The D2C model enables CPG companies to build trust and offer a personalized customer experience.
- Gaining Deeper Consumer Insights: Selling directly to consumers allows CPG companies to understand the entire consumer journey and access First-Party Data.
- Enhancing Profit Margins: To stay relevant, CPG companies are recognizing that the D2C model assists them in diversifying and selling through another channel in addition to traditional retail.
To effectively implement the D2C model, CPG companies need to accurately understand their consumers. This primarily involves collecting and analyzing consumer data to gain significant insights into consumers’ purchasing behaviors. Coforge is assisting CPG companies in making these Data-Driven Decisions and making them a digital-first organization.
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