Use of Big Data in CPG marketing still a work in progress
Through a special arrangement, presented here for discussion is a summary of a current article from the monthly e-zine, CPGmatters.
A national survey by the Shopper Technology Institute of CPG marketers found that few companies have an enterprise Big Data strategy in place, and most are simply not ready with rationale, technology or the talent to put it to beneficial use.
Among the findings:
- Two thirds (68 percent) are still determining the business case for Big Data;
- Just six percent have deployed Big Data solutions in consumer marketing;
- Fewer than 10 percent have talent acquisition strategies that address Big Data opportunities;
- Only 35 percent measure their Big Data program ROI.
Yet the findings also showed that marketers are looking for ways to leverage Big Data to improve performance:
- Nearly half (47 percent) are integrating new data sources to gain a better view of consumers;
- More than half (54 percent) are linking syndicated data with new data sources to improve promotions;
- Seven in ten (70 percent) have applied Big Data insights to sharpen promotion strategies;
- One in three (33 percent) have invested in Big Data technology, and another 17 percent plan to this year.
The "Big Data in Marketing" survey was conducted in late 2014 by the Shopper Technology Institute, in conjunction with VSN Strategies. Gartner Group participated in an advisory role.
The survey reveals that CPG organizations are working diligently to get a handle on Big Data for consumer marketing. Four in ten are acquiring tools to enable them to process Big Data, which indicates the remainder haven’t commenced that activity yet. Referencing the subject of Big Data veracity, 41.5 percent indicate they are working on ensuring data "trust," with attention to data models, data quality and data governance.
- Only six percent indicated they had reached the deployment stage, while more than seven in 10 have yet to commence formulating a strategy;
- While the inability to measure program ROI may be a significant inhibitor, an encouraging sign is that 35 percent are already able to understand what they are getting from their Big Data investment;
- Most report success at finding new consumer insights as a result of Big Data activities, but other anticipated benefits have been slow to arrive.
What opportunities and challenges does the Big Data opportunity present for CPG companies versus retailers? What do you see as the short-term wins and long-term goals for CPG vendors around Big Data?