The Rise of the Prosumer
I remember the days when I would walk down seemingly endless aisles at the department store looking for the best deal on my favorite Colombian coffee only to find that the offer had ended just a day earlier. Two words come to mind when I think of those times; disappointment and frustration.
Fortunately for me, and all of you reading this blog, there are now better ways of getting what you want, whether it's detergents, diapers, or any other consumer packaged commodity. Here's what has changed the game:
• Digital technology is rapidly evolving and has empowered us to access product information and connect with each other across multiple channels including e-commerce portals, social media networks, and 3G mobile phones in real-time at the moment of truth, online or in-store. Product information has been democratized. Our perceptions are no longer shaped by a marketer's top-down mass broadcast communications.
• Channels are converging. The convergence of mobile platforms, online channels, and stores means that we have detailed information about product pricing, specifications, availability, and deals. At the same time, it gives enormous opportunities to CPG companies to have consumers converse with their brands.
• Audiences are disaggregating. As we huddle together in narrower special interest groups, it is becoming increasingly difficult for CPG companies to engage us, their prospects. There is an increasing need for CPG companies to develop context-aware personalized communication. Wouldn't it be great if you received a discount coupon on packaged foods via your mobile phone just before that long camping trip that you blogged about? I am not a statistic in a market research report. Nor are you. Our needs, interests, and tastes at a given time are unique, and it's time marketers understood that.
• In-store technology is more sophisticated than before. Stores, nowadays, can track our activity in real-time helping CPG brands to provide contextual promotions and increase cross-sell and up-sell opportunities. Using this technology, CPG companies can gain valuable insights and improve conversations at the point of sale.
As digital consumers of today, we have evolved to become more involved in the creation and consumption of products we purchase. In addition, brand loyalties have eroded and information on products and promotions is now at everyone's fingertips. The balance of power has tipped in favor of the consumer.
In the next few posts, we will take a closer look at some of these game changers and see how CPG companies can benefit from their use.
I'm also speaking at the CGT Sales & Marketing event about this - if you are going to be at the event, do plan to attend the session and participate in the discussions.
