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New Research Shows Consumer Goods Route-to-Market Strategies Get a Digital Makeover

Mass adoption of digital in the B2B route to market transforms the future of the consumer goods industry.

November 4, 2021. 5 MIN READ

2020 may have been a black swan event, but it catapulted the consumer goods (CG) industry into the digital era. Many companies found the need to significantly accelerate digital investments to keep the value chain moving and get products into the hands of customers in the face of warehouse closures, logistics issues, and physical distancing; now, it’s made a lasting impact on the B2B route to market. In the coming years, we'll see continued digital acceleration in every part of the route to market, from account management to field execution.

of CG companies accelerated digital transformation in the B2B route to market.

Note: All statistics referenced in this article are from Consumer Goods and the Great B2B Digital Acceleration.

This is a historic moment for the consumer goods (CG) industry, an industry once slow to adopt anything digital. To understand both the seismic changes and what may lie ahead, Salesforce conducted a survey of 500 CG leaders — defined as C-level, vice president, senior vice president, executive vice president, or equivalent — across eight countries and four continents. Here are the top three findings from the report.

Stop-gap digital investments drive industry-wide maturity
Virtual account management and field execution are here to stay
Investments in B2B digital commerce expand relationships

Where is the B2B route to market headed?

Discover what 500 CG leaders have to say about the state of digital maturity in the route to market and what’s next.

Read the report

Astro with in-store employee and tablet.

Stop-gap digital investments drive industry-wide maturity

Ninety-nine percent of CG companies accelerated digital transformation in the B2B route to market. What was even more astounding was the pace at which it all happened. In just a handful of months, 43% of CG leaders expedited digital investments that were once scheduled as far out as two to five years. They prioritized investments in:

Account management
Retail and field execution
B2B digital commerce

of CG leaders expedited digital investments that were once scheduled as far out as two to five years.

The impact of these investments on the bottom line speaks for itself. Most CG companies reported that the B2B route-to-market investments they made impacted 11%–50% of their total company revenue.

CG companies that rethink their trade spend strategy are in an even stronger position to grow margins. After all, trade spend is a huge piece of the budget pie — in fact, it’s second only to cost of goods sold on the P&L. But according to Deloitte, 60% of promotions go unevaluated thanks to a lack of analytical firepower. Digitizing trade spend management gives CG companies the insights they need to understand what works and what doesn't. That’s important, because 40% of CG companies that increased trade spend by 10% saw more than a 25% increase in sales growth. (On the flip side, 20% of those that cut back on investing by as little as 5% saw a significant sales decline of 20%.)

CG companies reported that the B2B route-to-market investments they made impacted 11%–50% of their total company revenue.

Over the next few years, we predict that CG companies will continue to invest in refining the B2B route-to-market strategy with digital technologies and look to consolidate disparate systems to build a 360-degree view of the customer. Breaking down silos will also allow CG companies to minimize the effects of future black swan events.

Astro with sales rep in inventory room with tablet.

Are you new to the term end-to-end advertising management system? Dive deeper into what it is and learn how it can help you capture more audience attention and accelerate growth.

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Virtual account management and field execution are here to stay

CG leaders realize that virtual engagement in account management and field execution is not just a short-term solution for physical distancing. It has shown proven business impact.

Digitization in account management enables sales reps to maintain relationships with key accounts and increase collaboration with customers, which drives growth. Consider that 73% of CG leaders who said their company implemented telesales prior to the pandemic saw 25% growth. Those that invested in digital customer service channels like chatbots and mobile also saw big returns. This signals that companies that embraced digital and enabled a true omni-channel customer experience were better positioned — and saw less disruption — in their core business.

of CG leaders who say their company implemented telesales prior to the pandemic saw 25% growth.

When it comes to field execution, digitizing merchandising activities and trade marketing ensures compliance while streamlining the entire process. Field reps still made in-store visits at the height of the pandemic — albeit limited visits under tight restrictions — but those that adopted digital tools now want more capabilities, like real-time shelf monitoring, the Internet of Things (IoT) for merchandising audits, and object and facial detection to support routine audits and planogram compliance. In fact, 44% of CG leaders are looking to adopt more remote-based retail and field execution technologies in the next three to five years.

of CG leaders are looking to adopt more remote-based retail and field execution technologies in the next three to five years.

CG companies benefit from the speed and cost efficiencies that come with virtual field execution solutions. For example, instead of a field rep spending hours at the store going through paper notes, they have a full task list on their phone with automation guiding them through every step of the process. Suddenly that audit, once based on live conversations on site, shifts to a mutual strategy session in which the brand rep helps the buyer meet their goals rather than just pushing targets.

Investments in B2B digital commerce helps CG companies expand relationships

While the rapid adoption of B2C commerce in CG made headlines, there was a turning point for B2B digital commerce as well. CG companies that set up B2B digital commerce capabilities during the pandemic enabled the vast ecosystem of manufacturers, distributors, and large retailers to browse products, receive quotes, and make large purchases online.

In fact, 80% of all B2B organizations are moving or have moved to digital commerce. Looking closer at the data, nearly half (48%) implemented self-service B2B digital commerce solutions in 2020.

of all B2B organizations are moving or have moved to digital commerce.

B2B digital commerce solutions help CG companies build stronger relationships with customers, whether they are large-scale retailers or mom-and-pop shops. Customers log in to a B2B storefront through an authenticated portal to review products, place routine orders, get recommendations for other products based on store-specific demographics, split payments, and more. CG companies can also bring a personalized B2C-like experience to their B2B buyers through the site, resulting in higher brand affinity and repeat sales.

Digital marketing targeted to B2B customers is also on the rise. Eighty-three percent of companies that grew revenue at least 5% increased their digital marketing spend.

of companies that grew revenue at least 5% increased their digital marketing spend.

B2B digital acceleration transforms the route-to-market strategy

The mass adoption of digital technology in the B2B route to market has transformed the playing field — and it will only continue to evolve. As CG leaders look at what’s on the horizon, they have an incredible opportunity to deliver additional growth across the route to market.

To learn more about the trends impacting the B2B processes consumer goods brands are employing to get product to partners and distributors, read the report Consumer Goods and the Great B2B Digital Acceleration.

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About the Author

Sunil Rao is a vice president and general manager for Consumer Goods at Salesforce. He is focused on helping companies become more autonomous, intelligent, and connected.