DIGITAL FOOD & BEVERAGE: Enhancing Your CX and Leveraging Data and Channels to Win with Customers

Methodology
Key Findings
How Food and Beverage Brands Can Accelerate eCommerce Growth (by Scott Clarke, Vice President, Consumer Products Industry Lead, Publicis Sapient)
Part One: Accelerating eCommerce Growth
Part Two: Enhancing Your CX to Win New Customers and Keep Existing Ones
Part Three: Developing D2C and On-Demand Strategies That Meet Shoppers’ Needs
Conclusion & Key Suggestions
About Publicis Sapient & WBR Insights

Contributors

Jaicee Matthews, Head of Marketing EMEA, Edgio
Sam Shutt-Vine, Lead Consultant EMEA, Food & Beverage, Edgio
Gemma Leutton, Director, Publicis Sapient
Scott Clarke, Vice President, Consumer Products Industry Lead, Publicis Sapient
Vladimir Sushko, ERetail Director Europe, AB InBev
Guy Keeling, VP Global Head eCommerce, Barilla
Timoty Weiss, Field Manager Digital Commerce Technology, Loacker Spa/AG
Will Robinson, Conference Director, Digital Food & Beverage EU 2022

Methodology

In Q2 of 2022, WBR Insights surveyed 100 Heads of eCommerce from organisations across Europe to understand the challenges they face in 2022 and the innovative solutions being implemented. The survey was conducted by appointment over the telephone. Results were compiled and anonymised by WBR Insights and are presented here with analysis and commentary by Edgio, Publicis Sapient, and the digital food and beverage community. The topics in this report are also covered in the Digital Food & Beverage Connect event.

Survey Demographics

Primary Business Roles:

20% VP/Director/Head of Marketing
20% VP/Director/Head of eCommerce
19% VP/Director/Head of Digital & Data
19% VP/Director/Head of IT
12% VP/Director/Head of Media and Digital Acceleration
5% VP/Director/Head of Customer Experience
5% VP/Director/Head of Innovation

Industry Breakdown:

21% Online grocery retailers
20% Challenger/start-up food and beverage brand
20% Grocery retailers
19% Food and beverage brand
10% Online marketplace
10% Food delivery aggregators

Company Locations:

UK: 31%
Belgium: 10%
France: 10%
Germany: 10%
Spain: 10%
Italy: 10%
Nordics (Denmark, Finland, Norway, Sweden): 10%
The Netherlands: 5%
Switzerland: 4%

Key Findings

The top trend for F&B brands in the next three years is accelerating eCommerce, cited by 44% of respondents. Direct to Consumer (D2C) is also important (38%), and 49% expect more F&B brands to go direct over the same period.
55% of respondents are investing in customer data platforms (CDPs) to drive customer experience (CX) initiatives, highlighting the growing importance of personalisation at scale.
The main challenges facing CX are a lack of actionable insight on how to optimise websites (48%) and a lack of talent and resources (47%).
There is an increased focus on personalising the customer journey. 25% of respondents are breaking down organisational silos to support personalisation, and 20% are using customer feedback to tailor the experience.

How Food and Beverage Brands Can Accelerate eCommerce Growth

By Scott Clarke, Vice President, Consumer Products Industry Lead, Publicis Sapient

The global health crisis has changed how consumers shop, with a greater emphasis on digital channels and new drivers of value. eCommerce now makes up approximately 6.6% of all consumer packaged goods (CPG) sales, and the shift towards online shopping is not a short-lived pandemic response. 71% of consumers are shopping online more than before the pandemic, and 48% believe they will shop more online in the future.

Despite this shift, the online buying experience remains underwhelming. While F&B brands have made gains in meeting demands for fast, convenient, and anytime commerce, few have delivered truly delightful online experiences. With 44% of brands identifying ‘accelerating eCommerce’ as the biggest trend for the next three years, expect heavy investment in online channels to improve performance, attract and retain consumers, and stand out from the crowd.

To succeed, brands must embrace consumer-first, total commerce strategies, enabling consumers to engage with the brand universally and continuously. This requires rethinking the alignment and integration of owned and partner channels, creating a differentiated brand identity, and establishing stronger consumer relationships. Coordination and investment across sales, marketing, product development, and supply chain are essential.

Defining a Winning Consumer Proposition

The first step is to establish a clear and unique consumer proposition. Brands must reimagine the end-to-end consumer journey, driving loyalty and advocacy by providing relevant, context-specific experiences at key moments. Being consumer-led means understanding the motivations, frustrations, desires, and preferences that drive engagement.

Turning Data and Analytics into a Strategic Advantage

Successful eCommerce requires next-generation technology and sophisticated data modelling. 55% of F&B companies cite customer data platforms as their largest planned investment for CX, and 29% cite AI and advanced analytics as a major trend. Brands are under pressure to deliver personalised experiences, dynamic content, recommendations, and tailored offers. The ability to draw insights from data and act on them in real-time will be a growing competitive advantage. AI and advanced analytics will also improve supply chain efficiency, demand forecasting, and execution precision.

Creating an Omnichannel Strategy

To win the digital shelf, F&B brands must make products available across various sales channels, including marketplaces, retailer sites, and D2C sites. Channels are often siloed, but companies need to shift to a consumer-focused strategy that drives connections at all journey points, regardless of channel.

Act Like a Startup

Brands must adapt quickly, invest ahead of the curve, and adopt a ‘test and learn’ mindset. Accelerating time-to-market for new experiences and rapidly prototyping innovations in their minimum viable state is key. The new model for eCommerce growth involves embedding agility and recapturing scale advantages, assembling multi-functional teams to solve high-impact problems with speed and scale.

Part One: Accelerating eCommerce Growth

Driving Change in the F&B Industry

With the pandemic subsiding and traditional channels reopening, F&B brands must sustain the eCommerce momentum. 44% of respondents see eCommerce acceleration as the driving force for industry change over the next three years. The ‘hybrid’ consumer engages across both digital and physical channels, requiring a fresh outlook on eCommerce.

Biggest Trends Transforming the Industry (Respondents could select three):

Accelerating eCommerce: 44%
Working with online marketplaces: 40%
Direct to consumer: 37%
CX and loyalty initiatives: 36%
Data insights and artificial intelligence: 34%
Smart/connected products and packaging: 33%
Innovative brand-retailer partnerships: 28%
New channels and touchpoints: 21%
Supply chain innovation: 20%
Metaverse: 7%

Expert Commentary:

Jaicee Matthews (Edgio): “A comprehensive eCommerce strategy is essential. Consumers have higher expectations than ever. The metaverse is low in the poll, but there is opportunity for innovation. Food companies that embrace new technologies to merge digital and physical worlds will differentiate themselves.”
Timoty Weiss (Loacker Spa/AG): “There is rapid acceleration in commerce. Brands are experimenting with marketplaces and D2C to retain and expand their customer base.”
Guy Keeling (Barilla): “Grocery eCommerce will continue to accelerate. The next popular trends relate to first-party data, a major FMCG trend.”
Vladimir Sushko (AB InBev): “Key trends include partnerships with online retailers and tailoring propositions to meet consumer needs.”
Will Robinson (Digital Food & Beverage 2022): “eCommerce growth continues, but forecasting based on recent years may be unrealistic. Brands must resource and invest in line with consumer behaviours.”

Biggest Trends Impacting eCommerce in the Next Three Years (Respondents could select three):

Direct to consumer (D2C): 38%
Dynamic content: 36%
Voice-assisted commerce: 29%
Artificial intelligence and advanced analytics: 29%
Social commerce: 28%
Quick commerce: 28%
Visual commerce (video, AR/VR): 23%
Customisable products and personalisation: 19%
Clickless/anticipatory commerce: 15%
Data-driven, dynamic pricing: 15%
Subscriptions: 11%
Live streaming: 9%

Scott Clarke (Publicis Sapient): “D2C is growing as CPG brands seek brand control, first-party data, and personalised experiences. Delivering unique digital experiences and dynamic content is key.”
Vladimir Sushko (AB InBev): “D2C is important, as is AI and advanced analytics. Quick commerce offers significant consumer benefits.”
Guy Keeling (Barilla): “D2C is tough for much of the grocery sector; few F&B FMCGs will succeed.”
Jaicee Matthews (Edgio): “Optimising content delivery is key to D2C strategy. Dynamic content enables better understanding of consumer needs.”

D2C Models: 49% of respondents expect more F&B brands to go D2C in the next three years, 20% expect a decrease, and 31% expect it to stay the same.

Guy Keeling (Barilla): “D2C will form part of first-party data strategies, but 20% expect a decrease, perhaps due to the difficulty of doing D2C well.”
Timoty Weiss (Loacker Spa/AG): “Establishing D2C capabilities requires significant organisational change.”
Will Robinson (Digital Food & Beverage 2022): “D2C is a major opportunity, but not all products are suitable. Innovative business models and product development are key.”

Biggest Challenges in Going D2C:

Fulfilment and logistics: 17%
Organisational alignment and culture: 17%
Data access: 13%
Creating a unique/differentiated consumer experience: 11%
No clear business case/ROI: 11%
Technical infrastructure: 10%
Internal skills and mindset: 10%
Search engine optimisation (SEO): 7%
Channel conflict: 4%

Timoty Weiss (Loacker Spa/AG): “Organisational alignment and change management are the biggest challenges.”
Gemma Leutton (Publicis Sapient): “Legacy processes can hinder D2C success. Moving to D2C requires significant change across people, process, operations, and technology.”
Guy Keeling (Barilla): “FMCG brands are often poorly equipped for D2C, which requires new skills and products.”
Vladimir Sushko (AB InBev): “Creating a unique consumer experience is crucial. Organisations should map key advantages for shoppers and act on them.”

Part Two: Enhancing Your CX to Win New Customers and Keep Existing Ones

Data: The Key to Unlocking Customer-Winning CX

F&B brands are investing heavily in personalising the customer journey. Over 55% are investing in customer data platforms (CDPs) to collect and unify data from multiple sources and employ advanced analytics. Loyalty programmes are the second-highest area of investment (36%). With a holistic customer view, brands can target frequent customers with tailored discounts, prime them for product launches, and extend personalised treatment to deepen loyalty and drive repeat spend.

Areas of Greatest Investment to Drive CX Initiatives:

Customer data platform (CDP): 55%
Loyalty programmes and initiatives: 36%
Website architecture: 35%
Products and services innovation: 30%
Customer service upgrade (e.g., chatbots): 29%
Marketing and advertising: 29%
Data analytics: 26%
Customer relationship management (CRM): 15%

Guy Keeling (Barilla): “The industry is focused on first-party data, but must also work to improve the online shopping experience.”
Scott Clarke (Publicis Sapient): “CPG companies must harvest data across sources and apply predictive algorithms. The value of a CDP is a unified omnichannel view and real-time engagement.”
Will Robinson (Digital Food & Beverage 2022): “Investing in customer data management and analytics is delivering the greatest digital technology ROI.”

Top Technical Challenges Hindering CX Improvement:

Lack of insight on how best to optimise: 48%
Lack of talent/resources: 47%
Slow time to push updates to production: 46%
Lack of page speed optimisation tools: 46%
Lack of visibility into pages/elements causing errors: 40%
Limited previewing and testing tools: 39%
Inflexible tech stack: 34%

Gemma Leutton (Publicis Sapient): “Delivering a unique D2C service requires data-driven insights and a flexible tech stack. Headless architecture enables agility and adaptation.”

Headless Commerce Architecture in CX Strategy:

21% Already headless
21% Plan to go headless in 1–3 years
18% Plan to go headless this year
27% Interested and considering
5% Not considering
8% Do not know what headless architecture is

Jaicee Matthews (Edgio): “Hiring top talent is a challenge. Organisational process and legacy technology often hinder website improvement.”
Guy Keeling (Barilla): “Many brands are accidental shop owners with poorly organised teams. Digital native brands would answer differently.”
Jaicee Matthews (Edgio): “60% understand headless commerce and plan to incorporate it. Decoupled architecture enables control of the user experience.”

Part Three: Developing D2C and On-Demand Strategies That Meet Shoppers’ Needs

Putting the Customer at the Centre

Going direct means getting closer to the customer, but building relationships is challenging in a crowded market. 21% of respondents align D2C with other eCommerce initiatives, 19% use CRM software, and 19% create buying personas. Engaging customers at their moment of need and understanding their behaviours ensures D2C channels are optimised for conversions.

How Organisations Make D2C Channels Relevant:

21% Aligning with other eCommerce initiatives
19% Using CRM software
19% Creating buying personas
16% Customer preference options
11% Personalisation
10% Customisation
4% Hiring a customer support team

Timoty Weiss (Loacker Spa/AG): “Aligning with eCommerce and CRM initiatives is vital. Focusing the organisation and keeping a customer-centric approach is paramount.”

Respondents’ Views on D2C Benefits:

“We can create our own personalised paths to reach our customers without unnecessary external participation.”
“The need for multiple strategies and expenses on marketing reduces significantly with D2C channels.”
“We can create best-in-class customer experience strategies based on first-party customer data.”
“Understanding customer journey with better visibility is the most important benefit.”
“Direct communication helps us maintain relationships and brand reputation.”
“We can have our own channels of service and build a stronger omnichannel environment.”

Vladimir Sushko (AB InBev): “It’s important to understand how consumers benefit from D2C. Organisations need to identify which data points consumers are willing to share and use that data efficiently.”
Timoty Weiss (Loacker Spa/AG): “First-party data supports omnichannel activities and innovation.”

Personalising the D2C Experience

A quarter of F&B brands are breaking down organisational silos to personalise D2C experiences. 20% use chatbots to record feedback, 19% harness social media, and 12% use first-party data to anticipate behaviour. Personalisation across touchpoints is key to relevance and engagement.

How Organisations Personalise D2C Experience:

25% Breaking down silos to personalise CX
20% Recording and using customer feedback through chatbots
19% Harnessing social media to scale brand presence and engage customers
12% Using first-party data to reveal insights and anticipate behaviour
12% Personalised deals based on past purchases and preferences
12% Product discovery pages

Timoty Weiss (Loacker Spa/AG): “Personalisation is a trend, but the challenge is providing content in a personalised way. Overcoming silos is crucial, especially for content production.”

Streamlining D2C Fulfilment

Efficient fulfilment is key to meeting customer needs. 21% of respondents use data-driven demand and inventory planning, 21% automate order and warehouse processes, and 21% establish efficient warehouse flows. 19% implement integrated eCommerce software, 10% provide tracking information, and 8% sync inventory across channels.

Timoty Weiss (Loacker Spa/AG): “Efficient warehouse flows and automation are key. Integrating D2C in main business processes maximises output.”
Will Robinson (Digital Food & Beverage 2022): “Fulfilment’s success is key to customer experience. Investment in data-driven and automated processes is growing.”

Conclusion

The COVID pandemic has profoundly disrupted retail, creating lasting effects. Pre-pandemic shopping habits are unlikely to return, as consumers have grown used to eCommerce convenience. Both online and offline channels must work together to meet the needs of hybrid consumers. As F&B brands go direct, balancing strategies is essential as in-store sales recover. The industry is getting serious about data capabilities, which are essential for creating delightful and differentiating customer experiences. The shift towards D2C will depend on the ability to tailor CX to individual needs, requiring changes in operating models and culture.

Key Suggestions

Strive to become data-driven by default. Address data deficits early to win and keep customers. Invest in customer data platforms to align with industry direction.
Organise for eCommerce success. Identify growth territories and set an eCommerce strategy, but focus on dedicated resources and top talent. Attracting and retaining the right people is crucial in an era of workforce mobility.
Invest in creative content to drive direct traffic. Consumers expect content-rich experiences. Invest in content to tell your brand story, connect with consumers, and drive traffic to D2C offerings. Content is key to unlocking long-term D2C growth.

About Publicis Sapient

Publicis Sapient is a digital transformation partner helping established organisations become digitally enabled in their operations and customer service. With 20,000 people and 53 offices globally, Publicis Sapient fuses strategy, consulting, customer experience, agile engineering, and creativity to accelerate clients’ businesses. It is the digital business transformation hub of Publicis Groupe.

For more information, visit publicissapient.com

About WBR Insights

WBR Insights uses research-based content to drive conversations, share insights, and deliver results. They connect with high-level decision-makers in Europe and Asia across industries including Retail & eCommerce, Supply Chain & Procurement, and Finance. WBR offers whitepapers, benchmarking reports, infographics, and webinars to help organisations reach their marketing goals.

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