Any investment in your small to medium sized CPG business is a fraught question. How can you be sure you’re putting your money in the right place? How can you minimize risk of loss? What tactics will maximize a return on your investment?
At Byzzer, we believe that every decision should be data-driven, which is why we’re putting our money where our mouth is: If you’re considering an investment, you should know these four data points to understand why integrating data and analytics into your business operations is the smartest decision you can make for your long-term growth strategy.
38% of high growth companies say self-service tools for manipulating data are available throughout the organization.
In a recent global survey by McKinsey, the study’s authors set out to find if data and analytics can truly fuel a company’s growth. They defined high growth companies as those that have been able to grow their revenue organically by at least 10% over the past three years.
Among these high growth companies, 38% said they provide self-service data tools to their employees, from leadership to the lowest ranks – that’s compared to only 24% of all other companies.
The difference is clear: when you empower your employees to draw on data to support initiatives across the business, you’re setting your CPG company up for long-term success.
48% of small businesses say they use data for daily decision-making.
Small businesses are natural engines for industry innovation – especially in the CPG world. So, while 42% of all high growth businesses claim that they use data for daily decision-making, small businesses* are already ahead of that curve – 48% claim to have made data-driven decision-making a daily habit. Compared to “under performing” companies, the difference is also clear: high growth organizations report use of data in their daily decisions at a rate of nearly 1.5 times that of other companies.
*In this study, McKinsey defines small businesses as companies under $1B in annual revenue.
40% of companies say their competitors have gained a material edge by using data and analytics.
If you haven’t invested in data and analytics yet, the window to do so is closing quickly. Companies that stick to old ways of doing business in the CPG industry may secure short-term success, but the companies investing in data and analytics today are putting themselves ahead of the curve for tomorrow. Across the board, companies of all sizes see their competitors launching more data-driven strategies and initiatives, and 40% of all companies have already seen these initiatives bear fruit for their competitors – so what are you waiting for?
High growth companies say that data and analytics have contributed at least 20% to earnings over the last three years.
Here’s the bottom line: Companies with the greatest overall growth in revenue and earnings receive a significant proportion of that boost from data and analytics. Those respondents from high-performing organizations were three times more likely than others to say their data and analytics initiatives have contributed at least 20 percent to earnings over the past three years.
That’s a tremendous opportunity. And while building a data-driven growth strategy may seem challenging, if any CPG business can do it, it’s the SMBs that can pivot and innovate quickly.
If you’re a small CPG business leader considering the next big step for your business, the answer is as clear as the data: it’s time to invest in self-service retail analytics.
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