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Three Reasons Compel CPG Companies To Adopt The Direct-To-Consumer Model

August 10, 2018: 12:00 AM EST
Consumer packaged goods companies should consider adopting the direct-to-consumer model for three reasons: new product launches, consumer data, and consumer loyalty. To improve the success rates of new product launches, 75 percent of which fail, according to the Harvard Business Review, CPG companies must test concepts with real consumers using their direct channels before introducing those products to the retail channel. By using the DTC model, CPG companies gain access to a huge collection of information about the consumer. Also, by using a DTC channel, CPG companies can have a source of proprietary data which gives them competitive advantage. Finally, a direct access to the consumer provides CPG companies with means to create more convincing ways to buy from them and gather more personal information from their customers. [Image Credit: © Mediamodifier]
Steve Olenski, "3 Reasons Every CMO Should Consider The Direct-To-Consumer Model", Forbes.com, August 10, 2018, © Forbes Media LLC
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