This post in a nutshell:
➖ CPG companies have more sales data points they can manage and understand
➖ Overlooking CPG sales data points like Sales Volume, Store-Level Performance Variations, Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV) is costing millions.
➖ Getting ahead hinges on the ability to translate swaths of data into insights that drive action
Consumer Packaged Goods companies are swimming in a sea of data. From point-of-sale figures to social media sentiment, the sheer volume of information is staggering. But amid this data deluge, many sales teams find themselves struggling to effectively use CPG sales metrics to drive strategy and decision making.
It’s like having a library full of books in a language you can’t read.
In this article, we dig into how you can translate this wealth of data into a language your sellers can understand and act upon for better customer relationships and overall sales performance.
Humanizing Data for Effective CPG Sales Analytics
Numbers alone don’t tell the whole story.
Magic happens when we combine the data with good old-fashioned human insight. 🪄
Consider this scenario:
Your analytics tool spots a dip in sales for a product. That’s useful information, but reps may have more context behind why that’s happening. Maybe a competitor just launched a major promotion, or a large retailer is renovating its stores. By blending data with real-world insights, you gain a comprehensive view of your market dynamics.
Look how ChatGPT-4o paints that picture.
This is the result of actually prompting ChatGPT 4o to design the exact scenario described above. 5 seconds.
Context matters in CPG sales data
A small uptick in chip sales means something different than the same increase for fancy face creams. Encourage your team to look beyond the numbers and consider:
- Product lifecycle stage: Is this a new product gaining traction, or a mature one holding steady?
- Store performance variations: How does the product perform across different retail environments?
- Seasonal factors: Are there predictable fluctuations based on time of year?
Building a data-friendly culture can be difficult — some may be skeptical about adopting new analytical approaches. But remember, the goal isn’t to replace human judgment with algorithms; it’s to enhance it. Data must work alongside experience and intuition.
Try these ideas:
- Personalize data training for different learning styles
- Pair data enthusiasts with skeptics for peer-to-peer learning
- Share success stories of team members who’ve embraced a data-driven approach
By making data more human-friendly and integrating it thoughtfully into your sales processes, you’re empowering your team to make smarter decisions.
4 CPG Sales Metrics You Can’t Overlook
So, what KPIs can make or break your CPG sales strategy?
Here’s our list:
- Sales Volume
- Store-Level Performance Variations
- Customer Acquisition Cost (CAC)
- Customer Lifetime Value (CLV)
Sales Volume: More than Just Moving Product
Big sales figures are exciting, but in the CPG world, it’s important to dig deeper. Are you moving more units because your marketing is hitting the mark, or simply because you’ve dropped prices? Understanding the reason makes all the difference.
Tip: Check sales volume alongside profit margins. Sometimes, selling fewer items at a higher price can actually boost your profits.
Why should you care? Because focusing only on how much you sell without knowing why can hurt your bottom line. Grasping the story behind the numbers helps you make smarter decisions and increase profitability.
Store-Level Performance Variations
Many CPG companies miss an opportunity by not digging into individual store performance.
It’s easier to rely on broad metrics and ignore the small variations that could be hiding big opportunities.
Take this example: a company selling $1 billion annually might have 10% of its stores underperforming by 20%. That’s $20 million in lost revenue.
Store-level data can show why some products fly off the shelves in one location while struggling in another. Maybe it’s the way products are displayed, the local consumer preferences, or even how well in-store promotions are executed. Understanding these nuances can lead to smart changes that close those performance gaps and recover substantial revenue.
For sales teams, focusing on this data isn’t just about boosting numbers — it’s about becoming more strategic. They can tailor their approaches for each store, running targeted promotions or adjusting inventory based on what works best locally. And the potential payoff is huge.
Why should you care? Because even small tweaks across a handful of stores can add up to millions of dollars in recovered revenue. It turns individual store data into a growth engine—one that improves the overall bottom line by ensuring that every store is performing at its peak. By taking this approach, CPG companies transform underperformance into an opportunity for growth that directly impacts their profitability.
Customer Acquisition Cost (CAC): The Price of Making Friends
In the rush to boost overall sales, many companies overlook a crucial detail: the cost of acquiring each customer. They often don’t distinguish between retailers and end consumers, which can lead to marketing dollars being spent in all the wrong places. This misalignment means they might be targeting low-margin retailers when they should focus on more profitable customer segments.
Let’s put it into perspective. If a company’s Customer Acquisition Cost (CAC) is $100 but they’re directing their marketing efforts toward less profitable areas, they could be overspending by 10%. On a $500 million marketing budget, that’s a whopping $50 million wasted ($500 million * 10% = $50 million). Imagine reallocating that chunk of change to target high-margin customers instead — it could significantly boost profits without increasing budget.
Why should you care? Because knowing where your money goes is half the battle. By analyzing and optimizing CAC, companies can ensure they’re investing in the right places. It’s about making smarter choices that turn potential waste into substantial gains, ultimately driving profitability and growth without extra spending.
Customer Lifetime Value (CLV): Playing the Long Game
Many CPG companies face the challenge of attracting two kinds of customers: retailers and end consumers. Knowing how much it costs to bring each on board is crucial. Are you spending too much time and money courting big retailers? Maybe your consumer marketing could use a boost.
While focusing on short-term sales spikes, many companies overlook the long-term profitability of their customers. They forget about Customer Lifetime Value (CLV), which tracks how much a customer is worth over their entire relationship with your brand.
Think about this: a large CPG company serves 10 million customers annually, each generating $500 in revenue. If they fail to retain even 1% of these customers, that’s a $50 million loss in future earnings (10 million customers * 1% * $500 = $50 million). Ignoring CLV isn’t just missing out on immediate sales — it’s risking long-term brand loyalty, potentially costing hundreds of millions over time.
Again, why should you care?Because keeping customers coming back isn’t just a nice-to-have — it’s a game-changer for long-term success. By paying attention to both the cost of acquiring customers and their lifetime value, companies can make smarter investments that boost both sales and loyalty. Small gains in customer retention can add up to massive benefits down the line.
From Insight to Action
Now that you’ve got the insights you need, it’s time to put them to work. Revenue enablement platforms like Mediafly are powerful tools for making your sales team more efficient and productive. Here’s how revenue enablement solutions can help CPG sales teams:
- Connect data with people (sellers, buyers) and assets (content). Replace scattered spreadsheets and disjointed databases. Revenue enablement platforms integrate with other systems like SAP or Salesforce to bring all your data under one roof. Sales figures, customer interactions, market trends — it’s all there at your fingertips.
- Understand what works. Content analytics tools within revenue enablement solutions track how sales materials perform in real-world scenarios. See which product brochures are leading to more sales, whether digital catalogs are engaging buyers effectively, and much more.
- Move forward with confidence. Yesterday’s data is old news. Revenue enablement platforms offer real-time analytics, allowing your team to make informed decisions on the spot. Imagine walking into a meeting armed with up-to-the-minute sales data and trend analysis.
- Tailor your decks while staying on brand. Your sales content needs to be as diverse as your product line. Revenue enablement platforms offer smart content management, ensuring your team always has relevant, up to date, and on brand materials at hand.
Empower Your CPG Sales Team
Success in CPG hinges on your ability to turn product and consumer information into action. Humanize your data, focus on key metrics like sales volume and customer acquisition cost, and leverage revenue enablement technologies to shift your sales approach from reactive to proactive.
The insights we’ve shared here are just the beginning. To dive deeper, download our guide, “How CPG Brands Can Win in a New Era of B2B Sales” and set your sellers up to thrive.
Comments are closed.