Adopting a direct-to-consumer strategy helps consumer packaged goods (CPG) companies gain loyalty and create new sources of revenue. Our analysis, which includes HFS research on CPG and retail trends, finds that more than 70% of CPGs are developing a DTC model, yet many believe there are hurdles in getting the most out of a DTC approach. Optimizing a direct-to-consumer e-commerce channel with generative AI provides a means to mature these models. Here are three ways generative AI may help CPGs enhance their DTC approach.

1. Real-time dynamic pricing and sales strategy

Generative AI can process enormous quantities of data to assist CPGs in determining how to design go-to-market sales plans based on pricing, variety, and promotion. Generative AI solutions may assist in the development of strategies with a high statistical chance of market success by using internal, local, and worldwide data. Gen AI gives the capacity to use data, translate it into insights, and generate plans in real time, allowing decisions to produce the desired results.

CPG companies may use the findings of these AI-derived strategies to enhance their direct-to-consumer approach.

2. Improved targeting to address client purchasing behaviors

Consumer dynamics are fast evolving, thanks to omnichannel choices that allow consumers to buy across several channels based on their purchase intent. Consumer purchasing habits are also being put to the test as the economy changes. These characteristics can make it difficult for CPG companies to know where to lay their bets, particularly with a new DTC strategy that requires fine-tuning. However, generative AI may assist CPG firms in swiftly obtaining a 360-degree perspective of the consumer and recommending activities to better target them with the correct pricing and promotion at the right time.

3. Enhance client experience through order management

To develop a successful DTC model, CPG companies must provide a seamless purchasing experience on their e-commerce platforms from beginning to end. Providing accurate information, ensuring product availability, and enabling a great experience are all critical components of the purchasing process. The last thing a customer wants to see on your website is that their favorite item is not available.

Generative AI may help by analyzing market and purchase data to better manage demand, supply planning, and availability, allowing you to acquire the most market share. Generative AI’s capacity to swiftly filter through large amounts of data can assist your CPG business in staying on top of order fulfillment so that your consumers do not click away unsatisfied.

How to make the most of generative AI’s skills
It’s apparent that generative AI can assist enhance DTC models and improve consumer experiences. However, for CPG firms to gain these benefits, they must ensure that they are internally prepared to adopt the new technologies.

Here are the four basic components to assist your business get the most out of AI and Gen AI:

Focus on outcomes to ensure that generative AI is implemented in a comprehensive manner. Enterprises with developed digital journeys will be ahead of the curve.
Make Gen AI a part of your whole solution, rather than a one-time intervention. Integrate it with data orchestration, cloud computing, and automation to achieve complete digital transformation.
Create data foundations by building high-quality data collecting systems and standardizing data-quality procedures using business algorithms.
Create a data-centric talent pool to use the company’s collective intellect, and use a co-innovation strategy for generative AI. Do not be afraid of failure; instead, learn from it. This will aid in ruthless prioritizing and hasten ROI.
As customer demand shifts, so should your tactics for meeting their expectations. DTC models are a fine place to start, but improving them with generative AI technology can allow your firm to be more nimble and adapt fast to market information, all while pleasing customers along the way.