The Future of CPG Marketing: How to Navigate Engagement, Data and Disruption

CPG companies are having to rethink how they engage with, market to and retain their consumers. At the core is a growing need to provide value-driven, transparent and meaningful consumer experiences, but inconsistent AI and weak data practices are hurting efforts. In this Expert Exchange episode, senior editor Liz Dominguez speaks with Sarah Richter, chief marketing officer at SAP Emarsys, about her company’s Global Consumer Products Engagement Report, U.S. edition, conducted in collaboration with Deloitte. The study explores how digital transformation is redefining marketing and engagement strategies. Richter adds context to the findings through real-life examples of consumer engagement with companies such as Ferrara, John Frieda and Molton Brown.Richter is working with companies that are already reaping the rewards of new approaches to marketing and personalization. Candy manufacturer Ferrara, for example, was lagging behind its competitors due to outdated technology that limited its ability to effectively engage with consumers. Ferrara implemented a customer data platform and identity solutions, which resulted in a 59% increase in contactable consumers, a 300% sales jump for one of its brands and the discovery of a new consumer segment — gamers who were then targeted through tailored campaigns. John Frieda launched a new product using a data-driven omnichannel strategy. The campaign drove a 4x conversion rate and led 88% of shoppers to purchase additional products. Molton Brown, meanwhile, used loyalty and subscription models tied to sustainability initiatives. Through this, it saw a 68% increase in consumer value compared to non-ESG customers.These examples reflect a broader shift in the industry. Companies are investing heavily in digital infrastructure, with 88% of surveyed respondents transitioning their ERP solutions and 60% integrating advanced marketing technology. They are looking to unify consumer data, enable personalization at scale and support real-time engagement, per Richter. However, marketers face significant hurdles. The study found that 77% say consumer behavior is increasingly unpredictable, while 72% are struggling to engage meaningfully. A major obstacle is data; 51% of marketers can’t access it in real time, and 49% say it’s too unstructured to use effectively. As a result, fewer than one-third of respondents feel confident in their ability to personalize content and marketing campaigns.One of the standout insights from the study is the issue of “dark data” — consumer information that is collected without a clear purpose. Half of CPG marketers admitted their organizations suffer from this, which not only damages consumer trust but also wastes resources. Seventy-one percent of consumers are put off when brands request personal data without explaining how it will be used, and 80% demand to know how their information is managed. Richter emphasizes that consumers expect a value exchange. For example, if they share personal information, they want personalized experiences and meaningful interactions in return.Looking at the future, Richter says marketers should prepare for more change, faster than ever before. Personalization remains key, with 89% of CPG marketers identifying AI as critical to future engagement. But while AI may be necessary to operate at scale, only 9% of consumers want strictly AI-enabled personalized interactions, highlighting the need for brands to strike a balance between automation and human connection. Another concern is channel volatility. For example, 73% of marketers have contingency plans in place in case platforms like TikTok are banned, highlighting the importance of being agile and ready to shift quickly.Overall, Richter believes the brands that succeed will be those that use their data strategically, build loyalty through relevant and transparent interactions, and use technology to create authentic, lasting consumer relationships.

The Future of CPG Marketing: How to Navigate Engagement, Data and Disruption

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