At a Glance
- The FMCG and retail sectors face ongoing challenges including disruptions in the global supply chain, changing customers’ behaviours driven by sustainability demand and concerns
- Improving customer experience can help the FMCG and retail industry players fight for a smaller slice of pie, thereby driving revenue growth
- Strategies for boosting revenue through improved CX – omnichannel presence, customer personalisation, loyalty programmes, streamlined checkout, and social media presence
Goods prices have skyrocketed due to disruptions in the global supply chain, political instability, rising energy prices, and changes in weather patterns. Although the global food prices have been rising steadily since 2020, the demand for it, i.e. fast-moving consumer goods (FMCG) such as food, health and wellness products remains strong. The FMCG industry is expected to reach $18,939.4 billion by 2031, according to recent market research.
However, with the ongoing challenges faced by the FMCG market, the industry players need to keep up with the pace of change, including changing customers’ behaviours, needs and preferences, driven by customers’ sustainability demand and concern, as well as inflation. Research shows that post-pandemic shoppers are buying smaller amounts of items and shopping locally when possible.
The FMCG sector focuses on the production and distribution of consumer goods, they have a mutually dependent working relationship with retail sector since the latter plays a crucial role in distributing the FMCG goods to consumers through various channels.
As the FMCG and retail industry players fight for a smaller slice of the pie, improving customer experience as part of a future-proofing customer service measure can help drive revenue growth.
Why Focus on Customer Experience for Revenue Growth?
Focusing on improving the customer experience can help customers build trust in your business, increasing the customer lifetime value (CLV) of your buyers. It also helps you stay competitive in a fast-changing retail environment.
Correlation between customer experience and revenue
Satisfied customers have a direct impact on revenue growth. One reason for this is emotional buying. An estimated 95% of purchases are made based on emotions. Customers who are not satisfied with a brand will spend money there, while customers who trust a brand and resonate with what it stands for are more likely to spend money.
When customers have a good experience with a company, they are more likely to keep shopping there. It costs less to retain an existing customer than to acquire a new one. This indicates that customers spend more money with a business throughout their lifetime than if they shopped once and never returned.
But focusing on providing positive customer experiences goes further than simply driving brand loyalty. A whopping 86% of customers are likely to recommend a brand to family or friends if they’ve had a good experience. This matters, since 92% of customers trust word-of-mouth recommendations more than direct advertising.
CX-Focused Revenue Strategies
With customer experience driving about two-thirds of customer loyalty — more than brand and price combined — it makes sense to focus your growth management strategies around customer experience (CX). Here are some strategies for boosting revenue through improved CX.
Customers have more touchpoints with companies than ever before. A recent study by the Harvard Business Review showed that 73% of customers interact with brands across multiple channels.
Providing a seamless experience for your customers as they move from their phones to their computers to in-person shopping goes a long way toward improving the overall experience with your brand.
Did you know that 91% of customers say they are more likely to engage with brands that offer them relevant recommendations and suggestions? Personalization isn’t just a smart strategy — it is critical to your brand’s success. In fact, 71% of customers are actively frustrated when content isn’t personalised.
One way to improve personalisation is to invest in customer data and advanced analytics. This can help retail businesses deliver spot-on, targeted advertising that their customers will appreciate and engage with.
If you don’t already have a loyalty programme that provides rewards for repeat purchases, you should consider one. An estimated 75% of customers prefer shopping with companies that offer rewards.
One way to do this in the FMCG sector is to use loyalty rewards to promote exclusivity. Hannaford Rewards, for example, offers cash back on store-brand purchases, which encourages customers to deviate from the brands they usually shop with and choose the Hannaford brand instead.
Another option is to offer exclusive options to loyalty members. Starbucks, for example, has an app that offers drink recommendations to loyalty members based on previous purchases. By combining your loyalty programme with consumer personalization, you can jumpstart your revenue growth.
Social Media Engagement
Your social media accounts provide an opportunity to engage with existing and potential customers, showcase new products, and promote sales. But staying engaged in social media can also help you get a beat on sentiment toward your brand in general. As you monitor brand mentions, respond to reviews, and engage with comments, you can begin gathering the information you need to further guide your CX-improvement strategy.
On average, 69.99% of online shopping carts get abandoned. And while there are many reasons for abandoned carts, technical difficulties and challenges with checkout are two of the big ones. You can reduce abandoned shopping carts and improve the customer experience by expediting the checkout process with fewer steps to click through and more payment options to entice more customers.
Kickstart your revenue growth journey
Whilst the notion to prioritise revenue growth is obvious, it is not always obvious where to invest to get the results you seek, and how to best achieve them.
Keen to find out more about revenue potential and opportunities?