NTT DATA study finds customer friction impacting the bottom line for consumer packaged goods companies

PLANO, TX – Sept. 25, 2017 – NTT DATA Services, a recognized leader in global technology services, released today its latest Customer Friction Factor (CFF℠) Assessment entitled, “Friction Challenges for the Consumer Packaged Goods Industry.” The research confirmed that consumers’ website experience is impacting the bottom line for Consumer Packaged Goods (CPG) companies, even though CPG organizations are often seen as the middle man between partners, suppliers and consumers.

 “Consumers have heightened expectations for premium digital experiences that blend products and services in more personalized ways. CPG organizations need to take ownership over customer experience and provide a holistic experience across all touch points whether physical, human or digital,” said Bob May, Senior Vice President, Consumer Industries, NTT DATA Services.

NTT DATA’s comprehensive assessment used its CFF framework to measure various customer friction points across 15 leading CPG Web sites including Anheuser Busch, Coca-Cola, ConAgra Foods, Dean Foods, Dr. Pepper-Snapple, General Mills, JBS S.A., Kraft-Heinz, McCormick, Mondelez, Nestle S.A., Pepsico, Tyson Foods, Unilever N.Y., and WH Group — primarily focusing on product search, information transparency and purchase availability.

Key Study findings

  • Leading CPG companies have 31 percent greater asset turnover and 13 percent higher gross margins compared to low scoring organizations.
  • Low-scoring CPG websites averaged 55 percent more steps for the consumer to complete their goal or reason for visiting the site, whereas leaders only averaged four steps.
  • While both high- and low-scoring CPG websites engaged in cross-selling/up-selling throughout transactions, the study found that low-scoring sites had heavy use of pop-ups, leading to consumer distraction.
  • 21 percent of all friction is related to technology - lagging CPG sites had confusing navigational menus, hard-to-find search results and a high number of page refreshes.

NTT DATA’s unique approach to helping companies eliminate customer friction and accelerate digital experiences includes a two-pronged approach. First, a CFF Assessment provides a deep analysis of quantifiable friction points and identifies appropriate recommendations with an actionable plan. Second, it helps organizations identify transformational solutions, enabling them to continually improve their customer experience by monitoring, measuring and reporting on success across key performance indicators—even as systems and stakeholders change.

Watch NTT DATA’s webinar, “Five Customer Friction Challenges Every CPG Firm and Retailer Face.”

About NTT DATA Services

NTT DATA Services partners with clients to navigate and simplify the modern complexities of business and technology, delivering the insights, solutions and outcomes that matter most. We deliver tangible business results by combining deep industry expertise with applied innovations in digital, cloud and automation across a comprehensive portfolio of consulting, application, ture and business process outsourcing services. 

NTT DATA Services, headquartered in Plano, Texas, is a division of NTT DATA Corporation, a top 10 global business and IT services provider with 100,000+ professionals in more than 50 countries, and NTT Group, a partner to 85 percent of the Fortune 100.

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