[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/12\/01\/cpgs-face-double-crisis-economic-conditions-marketing-data-gap\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2022\/12\/01\/cpgs-face-double-crisis-economic-conditions-marketing-data-gap\/","headline":"CPGs face double crisis: Economic conditions, marketing data gap","name":"CPGs face double crisis: Economic conditions, marketing data gap","description":"CPG marketing budgets are at risk in this economic climate, but a customer data platform can help prove marketing's value through the downturn and beyond.","datePublished":"2022-12-01","dateModified":"2024-05-06","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/sunny-neely\/#Person","name":"Sunny Neely","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/sunny-neely\/","identifier":562,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/5de591e46ba27246c19cdbceb8be43b96b0d92372a2b29a27d2b299768952f65?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/5de591e46ba27246c19cdbceb8be43b96b0d92372a2b29a27d2b299768952f65?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/12\/CPG-customer-marketing-FTR.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/12\/CPG-customer-marketing-FTR.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2022\/12\/01\/cpgs-face-double-crisis-economic-conditions-marketing-data-gap\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/","name":"CDP: Customer Data Platform","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"]},"Consent data management","COVID-19 and Business","CPG",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/marketing\/customer-engagement-marketing\/","name":"Customer Engagement","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_engagement","http:\/\/www.wikidata.org\/entity\/Q5196451"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},"Customer profiles: Customer Identity + Access Management (CIAM) for B2B and B2C",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/marketing\/marketing-general\/","name":"Marketing","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Marketing","http:\/\/www.wikidata.org\/entity\/Q39809"]}],"wordCount":809,"keywords":["CIAM | Customer Identity and Access Management","CPG | Consumer Packaged Goods","CPG Brands","First-party Data","Marketing Trends"],"articleBody":"It\u2019s rough sledding out there for CPGs. Signs of a recession have households tightening their belts and driving down demand. At the same time,\u00a0energy costs and supply chain issues have driven up manufacturers\u2019 wholesale costs by 35%.Facing pressure on the top and bottom lines, many CPGs are looking for costs savings wherever they can, even in areas once considered untouchable like the marketing budget.Data is essential to protect marketing budgets, but CPGs fall behind retail and other industries in collecting and using it. In today’s economic environment, they need to catch up fast.      Defending your marketing budget in 2023                With a recession looming, marketing budgets are at risk. What can you do to protect your budget? Top CMOs have some ideas.      No time for marketing theoriesAny marketer could point to dozens of research papers and articles that warn against budget cuts.\u00a0 \u201cShort term thinking impairs brand equity\u201d and “only strong brands win in recessions\u201d are common titles.The research is right \u2013 you shouldn’t cut marketing budgets in a downturn. If anything, increase them to steal share of voice from others who shortsightedly go silent.The problem is that when cannon balls are flying overhead, no one has time for academic theories. They need proof that two things are happening:The marketing team is optimizing every dollar it spendsYou can draw a straight line from the marketing budget to the profitability it brings in the accounting systemIf you can\u2019t prove these points with battlefield speed and urgency, your marketing budget may end up like Robert Duvall in “The Godfather”: dismissed because he wasn\u2019t a “wartime consigliere.”This content is hosted by a third party ( player.simplecast.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowMarketing optimization depends on dataIn a less volatile time, it would be easy to think big picture about how to build this marketing transparency and optimization. The solution would be centered in data \u2013 gathering more of it, and doing more with what you have.It would probably involve some variation of these steps:Building a unified record for consumer data with all the first-party sources you have access to, including site visits, apps, commerce, social media, marketplace ratings and reviews. Enriching records with third-party data from data brokers and shared data in clean rooms.Leveraging a customer data platform to ingest the data, manage identity and consent, and clean the data, with connectors to all consumer engagement channelsCreating and utilizing relevant segmentation for hyper-personalized consumer engagementTracking performance and prioritizing consumer engagements that deliver the most revenue and profitabilityA great example of a successful customer data platform implementation is Ferrara candy, which created unified consumer profiles that resulted in 20% greater conversion rates in their engagement campaigns.      Redefining your customer data strategy for amazing results                New research shows how companies are taking a more comprehensive and customer-centric approach to customer data with an eye on a big payoff.      CPGs: Start small to bridge the data gapBut despite the promise of unified consumer data, therein lies the trap of CPG data procrastination.Marketers know they need it \u2013 69% said first-party data was essential to their strategy. Yet with everything else on their plates, many of these same leaders would still say it sounds too complicated and expensive. And they’d stick with the status quo \u2013 trying to do things faster or working more hours.But data-driven marketing doesn\u2019t have to be a huge, lengthy IT project. It can be kicked off quickly with a single brand or a single market to prove its value.And it can be done under stressful, adverse market conditions. Many of the great military technology breakthroughs that were decisive in the outcome of a war were hashed out while the conflict was under way: cracking of the Enigma code, development of the P-51 Mustang, and more.If you can\u2019t completely revamp your entire system of consumer engagement to prove marketing\u2019s value and indispensability, at least carve out part of your business to show how to do it properly.      First-party data primer: Why you should create customer profiles, STAT                Third party cookies are slated to end after 2022. If you haven't already launched a marketing strategy fueled by data-rich customer profiles, it's time to get moving.      Through the downturn and beyondLeveraging a CDP to defend your CPG marketing budget internally can be a game-changer for getting through a tough economy.And when the eventual economic recovery arrives, you’ll be in better shape than competitors who chose not only to cut their media budget, but also put off the underpinning data investment required to maximize performance.  Is your brand house in order when it comes to customer loyalty?The road to retention starts HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2022","item":"https:\/\/www.the-future-of-commerce.com\/2022\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"12","item":"https:\/\/www.the-future-of-commerce.com\/2022\/\/12\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"01","item":"https:\/\/www.the-future-of-commerce.com\/2022\/\/12\/\/01\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"CPGs face double crisis: Economic conditions, marketing data gap","item":"https:\/\/www.the-future-of-commerce.com\/2022\/12\/01\/cpgs-face-double-crisis-economic-conditions-marketing-data-gap\/#breadcrumbitem"}]}]