DIGITAL FOOD & BEVERAGE: Enhancing Your CX and Leveraging Data and Channels to Win with Customers
Contents
- 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 will also be covered at the Digital Food & Beverage Connect event.
Respondent Profile
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
Geographic Distribution:
- 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 significant, with 38% highlighting its importance and 49% expecting 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, reflecting the growing importance of personalisation at scale.
- The main challenges to improving CX are a lack of actionable insight on website optimisation (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 shifted consumer shopping habits, with a greater emphasis on digital channels and new drivers of value. eCommerce now accounts for approximately 6.6% of all consumer packaged goods (CPG) sales, and the transition to online shopping is expected to continue. 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 for many. While F&B brands have made progress in meeting demands for fast, convenient, and anytime commerce, few have delivered truly exceptional online experiences. With 44% of brands identifying 'accelerating eCommerce' as the biggest trend for the next three years, expect significant investment in online channels to improve performance, attract and retain consumers, and differentiate brands.
To succeed, brands must adopt consumer-first, total commerce strategies, enabling universal and continuous engagement. This requires rethinking the alignment and integration of owned and partner channels, creating a differentiated brand identity, and building 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 channels require next-generation technology and sophisticated data modelling. 55% of F&B companies cite customer data platforms as their largest planned investment for CX initiatives, and 29% see 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 vast data and act on them in real-time will be a key competitive advantage. AI and advanced analytics will also improve supply chain efficiency and demand forecasting.
Creating an Omnichannel Strategy
F&B brands must make products available across multiple sales channels—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 is crucial. The new model for eCommerce growth involves agility at scale, assembling multi-functional teams to solve high-impact problems quickly.
Part One: Accelerating eCommerce Growth
Driving Change in the F&B Industry
With the pandemic subsiding and traditional retail reopening, F&B brands must sustain eCommerce momentum. 44% of respondents see eCommerce acceleration as the main driver of industry change over the next three years. The 'hybrid' consumer now engages across both digital and physical channels, requiring a fresh approach to eCommerce.
Biggest Trends Transforming the F&B Industry (Top Responses):
- 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%
Industry Voices:
- 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."
- Vladimir Sushko, AB InBev: "Key trends include partnerships with online retailers and further acceleration of eCommerce sales, requiring brands to tailor their propositions."
- Timoty Weiss, Loacker Spa/AG: "There is rapid acceleration in commerce and digital 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 two most popular answers relate to first-party data, a major FMCG trend."
- Will Robinson, Digital Food & Beverage 2022: "The acceleration of eCommerce is the key priority. Forecasting growth rates based on the last two to three years may be unrealistic. Brands must resource and invest in line with consumer behaviours."
Biggest Trends Impacting eCommerce in F&B (Top Responses):
- 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 to regain brand identity, access first-party data, and shape the consumer experience. Delivering unique digital experiences and dynamic content is key."
- Vladimir Sushko, AB InBev: "D2C is a major driver, with AI and advanced analytics becoming essential. Quick commerce offers important consumer benefits."
- Guy Keeling, Barilla: "D2C is tough for much of the grocery sector. Few F&B FMCGs will succeed."
- Jaicee Matthews, Edgio: "Ecommerce leaders will optimise content delivery as part of D2C strategy. Dynamic content is key to monetising relationships. Modern web architecture enables more personalised, adaptable experiences."
D2C Models: The Future of F&B
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: "Most FMCG marketing teams are developing first-party data strategies, with D2C as a component. 20% expect a decrease, possibly due to the challenges of D2C."
- 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 developments are key."
Challenges in Going D2C (Top Responses):
- 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%
- 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 and governance models can hinder D2C transformation. Success requires significant change across people, process, operations, and technology."
- Guy Keeling, Barilla: "FMCG brands successful in-store may struggle with 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 in personalising the customer journey, with 55% investing in customer data platforms. CDPs collect and unify data from multiple sources, enabling advanced analytics and innovation across the customer experience. Loyalty programmes are the second-highest area of investment (36%), allowing brands to target frequent customers with tailored offers and deepen loyalty.
Areas of Greatest Investment for CX Initiatives (Top Responses):
- 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 systematically harvest data and apply predictive algorithms. CDPs provide a unified omnichannel view and enable real-time engagement. Expect more investment in AI-powered journey orchestration and analytics."
- Will Robinson, Digital Food & Beverage 2022: "Investing in customer data management and analytics delivers strong digital technology ROI."
Technical Challenges to Improving CX (Top Responses):
- 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: "D2C requires data-driven insights and a flexible tech stack. Headless architecture enables agility and a thriving test-and-learn culture."
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 can hinder website improvements."
- 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 over 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 to make D2C channels more relevant. Engaging customers at their moment of need and understanding their behaviours ensures better optimisation for conversions.
How Organisations Make D2C Channels Relevant (Top Responses):
- Aligning with other eCommerce initiatives: 21%
- Using CRM software: 19%
- Creating buying personas: 19%
- Customer preference options: 16%
- Personalisation: 11%
- Customisation: 10%
- Hiring a customer support team: 4%
- Timoty Weiss, Loacker Spa/AG: "Aligning with eCommerce and CRM initiatives is vital. Focusing the organisation and keeping a customer-centric approach is paramount."
Benefits of D2C (Respondent Quotes):
- "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 maintain relationships and brand reputation."
- "We can have our own channels of service and build a stronger omnichannel environment."
- Vladimir Sushko, AB InBev: "Understanding which data points consumers are willing to share and using that data efficiently is key. D2C enables a full funnel marketing strategy and better communication across channels."
- Timoty Weiss, Loacker Spa/AG: "First-party data supports omnichannel activities and innovation."
Personalising the D2C Experience
25% 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 for insights and personalised deals.
How Organisations Personalise D2C Across Touchpoints (Top Responses):
- Breaking down silos to personalise CX: 25%
- Recording and using customer feedback through chatbots: 20%
- Harnessing social media: 19%
- Using first-party data for insights: 12%
- Personalised deals: 12%
- Product discovery pages: 12%
- Timoty Weiss, Loacker Spa/AG: "Personalisation is a trend, but finding the right way to provide content is key. Overcoming silos is a major challenge, especially for content production."
Streamlining D2C Fulfilment
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 into main business processes maximises fulfilment output."
- Will Robinson, Digital Food & Beverage 2022: "Fulfilment 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 accustomed to eCommerce convenience. Both online and offline channels must work together to meet the needs of hybrid consumers. As F&B brands pursue D2C, balancing strategies will be crucial as in-store sales recover. The industry is investing in data capabilities, essential for creating differentiating customer experiences. The shift to 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 remain competitive. Invest in customer data platforms to align with industry trends.
- Organise for eCommerce success. Invest in top talent and dedicated resources to build eCommerce capabilities. 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 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 combines strategy, consulting, customer experience, agile engineering, and creativity to accelerate clients’ businesses. Publicis Sapient is the digital business transformation hub of Publicis Groupe. For more information, visit publicissapient.com
About WBR Insights
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