Looking to scale your CPG channels and enhance your market presence? Leverage these data-based strategies to drive significant growth. From understanding product affinity to targeting high-value customers, we'll cover strategic moves that can propel your brand to the forefront of the industry.

7 Powerful Strategies to Optimize CPG Channels

1. Focus on High-Performing Channels

Where are you making the most money and reaching the right customers? Figuring this out lets you focus your time and budget on the channels that really work.

For instance, if you're running ads on both Instagram and Facebook, you might discover that customers acquired through one of those channels have a significantly higher customer lifetime value than the other.

Of course, you need to have a clear handle on your cross-channel data to make these kinds of comparisons and informed decisions.

Blueland, an eco-friendly cleaning products brand, utilizes omnichannel data to spot opportunities and decide where to focus their marketing efforts. Doubling down on key growth drivers helps the brand scale customer acquisition more efficiently. Learn how they did it.

2. Expand Retail Partnerships

Even with ecommerce booming, physical retail is still a big deal for CPG brands.

To establish and grow your retail presence, start by identifying partners whose values and customer base align with your brand. Prepare a compelling pitch that highlights how your product fills a gap in their current offerings.

Once you've secured initial partnerships, focus on proving your value. Maintain consistent stock levels, provide excellent customer service, and be responsive to your partners' needs.

As your partnership progresses, look for opportunities to expand your presence (such as through more SKUs, additional store locations, or new retail chains) and stand out on the shelf.

Remember, successful retail partnerships are about mutual growth, so always consider how your brand can add value to the retailer's business while expanding your own reach.

3. Differentiate Yourself

What makes your CPG brand special? Maybe it's gluten-free, upcycled, or vegan. Whatever it is, make sure it's front and center on your packaging.

Sanzo nailed this. They’re the first Asian-inspired sparkling water brand. Unlike legacy brands, their beverages contain real fruit and zero added sugar.

This clear value proposition helped Sanzo land spots in major U.S. retailers like Target and Walmart, and go from under $2 million to $12-15 million in revenue in just two years.

4. Optimize Your Product Portfolio

Not all products are created equal. An effective way to identify your stars and underperformers is by calculating the gross margin.

To do this, subtract the cost of goods sold from net sales, then divide by net sales and multiply by 100 for a percentage.

Products with high sales and high gross margin are the holy grail. Consider featuring them more prominently or increasing production. For low margin products, you might need to rethink pricing, cut costs, or even consider discontinuing them.

5. Tap into Product Affinity

Understanding product affinity helps you make informed decisions that boost overall profitability.

Let’s say you find out customers who buy your shampoo often purchase your conditioner in the same order or shortly after. Bundling these items could increase average order value while offering customers a convenient package.

Tip: Want to learn how to pair products together to drive more sales? Check out our deep-dive guide to product bundles.

6. Target High-Value Customers

Your top customers drive a significant portion of your revenue. In fact, data shows 41% of ecommerce revenue comes from 8% of a brand’s customers. And the top 5% of customers generate 35% of revenue.

To pinpoint high-value customers, consider:

• Recency: how many days since they last bought something from you?
• Frequency: how often has that customer made a purchase?
• Monetary: how much have they spent with your brand?

This is called an RFM analysis.

Then, create tailored marketing campaigns, exclusive offers, and personalized experiences to keep them engaged and loyal.

That’s what Stumptown Coffee Roasters did. They used RFM customer data to build stronger lookalike audiences on Facebook, leading to a 1.5x increase in ROAS.

7. Manage Inventory Smarter

As your brand grows, inventory management can become very complex. It’s essential to strike the right balance between having enough stock to meet demand, without tying up too much capital in excess inventory.

Data and analytics help brands to forecast demand more accurately, so they can avoid disappointed customers due to stockouts, or paying costs for excess inventory.

Beauty brand EOS implemented automated inventory reporting and forecasting. The result? They can now track 200+ SKUs and have saved tens of thousands in reshipment costs.

Optimize Your CPG Channels with Daasity

These strategies are just the beginning of what's possible when you harness the power of data in your CPG business. With analytics, you can make informed decisions that boost sales, improve customer satisfaction, and drive growth across all your channels.

Want to take your CPG brand to the next level? Daasity helps brands like yours turn data into actionable insights. Get in touch for a demo and let's explore the possibilities together.