As grocery shopping gets more digital, more food retail technology companies are joining up to deploy their resources, including in the consumer packaged goods (CPG) space.
The latest example of that comes from Salsify, a commerce experience management platform, and Label Insight, whose technology helps product-attribute growth across the CPG ecosystem.
To enable bidirectional data transfer between Label Insight's product attribute metadata platform and Salsify's commerce experience management (CommerceXM) in the food retail space.
More specifically, the two companies say this partnership will improve brands' ability to create new product data, enrich existing product data and enhance their overall business intelligence to propel e-commerce sales — all of which could help online shoppers better find specific food retail products.
This partnership provides CPG brands with the ability to improve their digital shelf experience across their retail networks by generating and optimizing their product content with product attribute metadata to better meet the needs of shoppers. Retailers could also benefit from being able to deliver more personalized shopping experiences.
"The addition of Label Insight product metadata to our comprehensive, integrated suite of CommerceXM capabilities will open new growth trajectories for our customers," said Ken Cowan, head of strategic development at Salsify. "Whether it's improving product content at initial setup or optimizing existing content experiences across the digital shelf, our bidirectional data integration will improve discovery and conversion across retail channels."
Hundreds of millions of U.S. shoppers search for products online based on attributes such as "Low Sugar", "Keto Diet" or "Cruelty-Free" to meet specific consumer needs related to health and wellness, allergens, sustainability and more. This large group of shoppers is currently underserved, the companies says, as 84% of brands fail to claim the top three most searched terms for product attributes for which they qualify. As a result, current retailer systems fail to return 92% of the products in their assortment that qualify for attribute-based searches on their websites.
The root cause of this poor shopper experience is incomplete and inaccurate product data flowing to retailers from CPG brands, according to the two companies. CPG brands often struggle with product data consistency and accuracy and must invest in multiple methods of product data maintenance and delivery. In fact, 85% of the world's largest retailers' top 2000 suppliers fail to provide high-quality product data.
Without a product attribute metadata platform like Label Insight and a commerce experience management platform like Salsify, identifying which products qualify to fulfill which consumer need-states is a manual, time consuming and costly analysis and activation process for CPG brands that varies between retailers.
"E-commerce acceleration combined with the large and growing segment of shoppers searching for products based upon individual need-states has created digital disruption in the CPG industry," said Todd Morris, CEO of Label Insight. "I am thrilled to be partnering with an industry leader like Salsify, because together we can help brands and retailers grow by removing the barriers to high-quality product data and connecting shoppers to the products that meet their health, wellness and lifestyle needs."