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Customer-Centric leading to Digital Transformation in CPG

Updated: Jan 22

That is what Digital Transformation is driving in the Consumer Packaged Goods industry.

Every industry has adapted to technology and automation in today's digitalized society. Technological advancement is now a driving force for almost all companies and industries, opening up unimaginable possibilities for change.

Integrating digital technology across a company's business functions leads to the transformation of its operations and provides its customers with more value.

Everything can be measured and accomplished with the help of technology. Content is abundant and requires emotional engagement from the customer. Business and brand success depends on building this connection with the customer.

Digital transformation initiatives in Consumer Goods (CG) organizations have a direct impact on customer engagement and customer experience.

For these reasons, CG organizations are in the midst of a major transformation.

The Need for a Digital Transformation in CPG Companies.

The internet isn't used just by millennials to perform research and shop on the web. Senior citizens began purchasing products online following the COVID-19 pandemic.

When buying products, the importance of the user experience has surpassed the importance of the price. Consumers of all ages desire a seamless digital experience on different channels. Customer experience must be at the centre of the digital revolution in consumer packaged goods. We put our customers at the centre of everything we do, whether improving their experience or delivering better service.

With a digital transformation, companies are embracing mobile-first strategies, augmented reality or artificial intelligence, cloud computing, software, IoT devices, and APIs to connect everything.

Providing customers with a tailored and personalized experience requires a digital transformation. Increasing numbers of digital devices in the home mean that consumers will increasingly rely on technology to conduct transactions. Alternatively, they can use Alexa, Google Home, or Apple HomePod to place an order, add an item to the grocery store's app shopping list, or set a smartphone location reminder so they can pick up the item the next time they're in the store. CPG firms must follow the consumer trend by going digital as well.

The CPG organizations that prioritize "going digital" will have fully integrated business systems, a data governance strategy, cognitive technologies that automate activities and analytics that allow them to gain insight into the value chain.

In the long run, digital technology expenditures will produce the promised benefits.

Laying the foundation for transformation.

Companies in the consumer goods industry need to implement next-generation transformations based on these foundations to thrive post-COVID-19.


To transform, a statement of the company's purpose and portfolio must be formulated. Instead of relying exclusively on traditional strategies, purpose and sustainability are now critical additions, providing a compass for such journeys, and allowing appropriate decisions and trade-offs along the way.


Customer-centricity must be adopted right from the beginning, so businesses can redirect efforts away from short-term success and focus on growth as the leading factor for long-term value creation. The company can also initiate growth-oriented activities that have traditionally been considered separate from standard cost-cutting measures.


The operations model of the company must be realigned to better reflect long-term transformational goals. To adapt to the upcoming transitions, companies need to reallocate their resources and rethink operating models to be more agile flatter, and faster. This process involves adopting agile and cross-functional approaches that are faster and more efficient, with fewer touchpoints and increased manager empowerment.


It is crucial to plan the phased implementation of the various functional building blocks and determine key interdependencies across functions and geographies as a means to ensure progress. In the continuous evolution of consumer preferences and expectations, the intersection of functions, and their ability to adapt synchronically to emerging trends, holds a lot of value.

The Influence of Technology on Digital Transformation.

Digital transformations are characterized by rethinking business models and rejecting existing ones. This has been happening in the CPG business lately. In the wake of the COVID-19 epidemic, the integrated supply chain underwent even further change, as traditional operations weren't sufficient to meet customer demand. The result is that advanced analytics and machine learning are becoming a necessity for the CPG industry.