But the most significant impact has been on sales. Having spent many years in the personalization space, Overstreet recognizes that consumers expect more sophisticated and authentic communication of brands.
“We live in an interrupt-driven world, where at any moment you're going to get a text message or push notification or email or phone call that can distract you from whatever you're doing, including completing that online order,” he says. “Getting a friendly reminder that you’ve left something in your cart in the form of a display ad is a benefit to the consumer.”
Takeaways and Best Practices
The challenges CPGs are facing are more acute, says Overstreet, as a large percentage of products are sold through retail and distribution — where there isn’t visibility into who is buying. In order to overcome this, he says DTC has been a great eye opener.
“You're able to finally know with certainty what demographic segments are buying your products, how they're discovering you, what messaging resonates, and so much more,” he says. “That is what makes this change in IOS so painful; it cuts off that visibility further up the funnel.”
Overstreet advises that CPGs do whatever they can to “turn the lights back on and regain that visibility,” including considering varied channel partnerships. For example, he says Spiceology has a broad spectrum of channel partners, leaning on companies like ACE Hardware, which caters predominantly to a backyard and BBQ audience, to a Nordstrom — “a very different shopper.”
This will translate not only to online visibility, but will inform channel strategies, allowing companies to identify key products that match specific demographics to stores that cater to the same audiences.