Data Analytics: How it Helps the FMCG Sector

There is not a shred of doubt that data is virtually the new oil, gold, or whatever other precious commodities you may wish to compare it with. While that is now common knowledge, what a lot of people don’t realize is that data needs work to be valuable and for that you need tools. Tools like data analytics, i.e. the process of analyzing sets of data to glean insights, information, and conclusions about the information they lead to. Now, given its scope, it shouldn’t come as a surprise that a lot of industries across the globe have found a use for it, including the FMCG sector, where data analytics is being used to help improve targeting, predict customer needs, etc.

Here are some other ways in which data analytics has offered incredible value to the FMCG sector:

1. Reduce risk and frauds: If you think the FMCG world is far removed from the risk of data breaches and frauds, then boy you are so wrong. You see security is as much an issue for any company operating in the FMCG sector as it would be for one operating in other industries. Thankfully, this challenge is rather easily addressed with some quality assistance from data analytics, allowing companies to safeguard themselves against a variety of threats. This is done via big data-driven techniques to run predictive fraud propensity models and use the information thus gained to protect the organization.
2. Better targeting: Marketing remains a tricky prospect for FMCG companies; however, it is made much easier with data analytics. How? Well, it allows such companies to gauge the effectiveness of different marketing campaigns and strategies, how their target audience responds to it, etc. This information can then be used to inform marketing strategies and tactics that are primed to deliver a substantially better impact on the target customers’ minds.
3. Inventory optimization: To a layman, an FMCG business may appear to be merely about stocking shelves and such. Unfortunately, it isn’t even close, among the countless challenges FMCG businesses and retailers face, one of the most prevalent issues is getting the inventory levels right. This means they must be able to strike just the right balance between a given FMCG product’s availability on the shelf and in the inventory to ensure top levels of customer satisfaction while also avoiding wastage. In this context, data analytics help by offering vital insights about product performance, service levels, asset utilization, inventory, etc. Such insights can then be leveraged to properly balance inventory levels, boost efficiency, etc.

There is no denying that the fast-moving consumer goods (FMCG) sector across the globe has recorded considerable growth for a while now. This growth trajectory is unlikely to change any time soon. However, that is not to say that this growth has been easy; i.e. the industry is continually faced with myriad challenges. This is why companies operating in this sector have been increasingly embracing data analytics. So, if you too wish to ensure growth for your FMCG business even in the face of challenging market circumstances, we recommend you get in touch with a trusted data analytics service provider ASAP.