4 Ways CPG Brands Can Win on the Digital Shelf

1. Prioritize KPIs That Drive Performance

It is essential to anchor strategy on a focused set of key performance indicators that directly influence profitability, such as digital share of shelf, conversion rates and product availability because these numbers tell an organization what’s working and where to put energy and resources. Conducting periodic strategic reviews of shopper behavior, product performance and campaign effectiveness helps to affirm that investments remain aligned with evolving consumer needs. 

For example, monitoring out-of-stock alerts and acting immediately can recover lost revenue while reinforcing brand reliability in digital channels. These practices allow leadership and teams to identify areas for improvement quickly and ensure that every decision supports both short-term results and long-term growth objectives. 

2. Align Cross-Functional Teams

As the digital commerce landscape has progressed, organizations are realizing that digital commerce is no longer the responsibility of marketing or e-commerce alone, but instead it spans sales, supply chain, insights and brand management. 

Aligning teams around shared objectives and performance metrics fosters transparency, accountability and coordinated execution. For example, dashboards and cross-functional scorecards help visualize each team’s contribution to overall digital performance, ensuring that priorities are consistent across the enterprise. 

At Hormel Foods, we recently completed a comprehensive digital shelf maturity assessment to pinpoint where we need to concentrate resources and energy in the coming year. This evaluation provided clear visibility into priority areas for improvement. With these insights, we are now establishing enterprise-level objectives and key results to align our cross-functional teams and drive measurable progress.

In addition to cross-functional collaboration and alignment, leadership engagement is equally essential. While executives do not need to manage day-to-day activities, they require timely, actionable insights to make informed strategic decisions that impact the broader organization. Seeing clear, measurable impact often encourages leadership to invest in initiatives like content optimization without getting bogged down in operational details.

3. Embed a Test-and-Learn Culture

Digital commerce is dynamic and shopper behavior, platform algorithms and technology tools are constantly evolving. Leading organizations embed a test-and-learn culture by testing new ideas, learning from results and generate actionable insights iterating rapidly. For example, experiments, such as adjusting pack sizes, refining product images or optimizing search terms, provide evidence-based direction for strategy and execution.

Equally important is building a culture that celebrates learning alongside success. Establishing forums to share outcomes across teams fosters organizational learning, reduces repetition of errors and accelerates capability building. 

At Hormel Foods, we reinforce a test-and-learn culture through a structured annual agenda that prioritizes experimentation and innovation. This agenda serves as a clear roadmap, ensuring focus and consistency throughout the year. In addition, we deliver regular capability-building sessions to challenge conventional thinking and inspire teams to embrace new approaches for driving results. Over time, this approach cultivates both agility and confidence in decision-making at scale.

4. Leverage Technology That Aligns With Consumer Behavior 

As the digital commerce landscape changes, so do the technologies across the industry. Leveraging emerging technologies, including artificial intelligence, can enhance productivity and decision-making when applied thoughtfully. 

AI applications, such as optimizing paid search or refining content recommendations, are now table stakes and the true differentiator is strategic deployment that aligns with consumer behavior. Natural language search, for example, is shifting how shoppers discover products. 

Consumers increasingly ask questions rather than type keywords: “What are the best snacks for a road trip?” rather than “peanuts.” Ensuring digital content surfaces in these contexts requires proactive content strategies and the smart application of AI to anticipate how consumers interact with digital ecosystems. 

The opportunity isn’t just to use AI, but to use it strategically to reach consumers wherever they’re searching.

Keeping the Shopper at the Center

Above all, it is clear that digital success starts with the shopper. Technology, analytics and processes are enablers, but they are only effective when grounded in a deep understanding of consumer needs, preferences and expectations. 

From decisions about digital content to the structure of teams and investments, when people see real results from digital initiatives, they become advocates, spreading that mindset across the organization. 

By keeping the shopper at the center, breaking down silos, investing wisely, giving teams room to act and embracing a test-and-learn approach, CPG brands can compete effectively on the digital shelf and ensure their products are the ones consumers choose time and time again.

Lisa Selk is the senior vice president of Brand Fuel at Hormel Foods.