Mind the Gap: 76% of CPG Digital Transformations are Out of Sync with Consumer Requirements

The research-action gap

The data exposes a critical paradox: while CPG leaders intellectually understand the importance of customer-centricity, they rarely translate this understanding into action during transformation planning. A striking 79% of transformers conceded that it would have been useful for them to have conducted in-depth customer experience analysis before beginning their transformation journeys. Yet only after projects falter do many realize this critical oversight.

This disconnect manifests in multiple ways. According to VML's research, 56% of transformers acknowledge there isn't enough customer research to truly understand what customers need from their experiences. Meanwhile, 51% of global consumers believe companies don't understand all the steps involved in purchasing their products—a damning indictment of the industry's customer understanding.

For CPG marketers, this represents both a challenge and an opportunity. Those who can bridge this gap stand to gain significant competitive advantage in an increasingly crowded marketplace.

Emotional intelligence as competitive advantage

The research highlights another overlooked dimension: the emotional journey. Beyond functional requirements, 77% of respondents acknowledged that understanding the emotional attributes that resonate with target audiences helps shape more effective digital transformations.

Digital experiences with emotional connections consistently drive higher conversion rates and customer lifetime value. Despite this, most CPG transformations remain exclusively focused on functional requirements and operational efficiencies, completely overlooking the emotional dimension that could differentiate their offerings.

This emotional blindspot represents a massive opportunity for forward-thinking CPG marketers. By mapping both functional and emotional customer touchpoints, brands can create digital experiences that not only work seamlessly but also forge deeper connections with consumers.

Adapting to shifting consumer expectations

The challenge is further complicated by rapidly evolving consumer expectations. More than half (54%) of respondents cited keeping pace with changing consumer demands as a significant transformation challenge. What customers want today may not be what they want tomorrow, requiring transformation initiatives to build in flexibility and continuous feedback mechanisms.

Reclaiming customer-centricity: A strategic blueprint

For CPG marketers looking to avoid these pitfalls, VML's latest report points to a comprehensive approach that begins with protecting dedicated customer research budgets from technology-focused spending. This research should inform comprehensive journey mapping for key customer personas before any technical requirements are defined. Symon Hammacott, Chief Experience Officer at VML APAC, emphasizes that "a customer's last, best experience defines their expectations for every next interaction," so tracking both functional and emotional touchpoints throughout the customer journey is essential.

Successful transformations also require establishing continuous feedback mechanisms that inform priorities in real-time, enabling brands to adapt to changing consumer needs. Creating cross-functional teams that include customer experience specialists alongside technical experts ensures this customer-centric perspective remains at the heart of the transformation process.

The CPG brands that thrive in the coming decade won't necessarily be those with the most advanced technology—they'll be those who most effectively align their digital capabilities with genuine customer needs and emotional drivers.