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With online grocery revenue reaching $9 billion in the US alone in January 2021, up from $7.5 billion in August 2019, it’s clear that consumers are enjoying the convenience of the online shopping experience.

Win the Digital Shelf with Regulatory and E-Commerce Collaboration

Posted April 28, 2021

With online grocery revenue reaching $9 billion in the US alone in January 2021, up from $7.5 billion in August 2019, it’s clear that consumers are enjoying the convenience of the online shopping experience. From the comfort and safety of their home, consumers can search for products that meet their own need states and preferences. In fact, 81% of consumer searches are unbranded meaning CPG brands have to truly understand what consumers are searching for and develop new strategies to be discovered on the digital shelf. In fact, Label Insight finds that as many as 51% of food products fail to claim their #1 most searched for attribute, and 84% of food products fail to claim at least one of their 3 most searched for attributes, leading to irrelevant search results, digital out-of-stocks, and dissatisfied customers.

Cross-Functional Collaboration Helps to Alleviate Regulatory Complexity

To make this even more complex, consumer search trends vary greatly depending on the retail channel. Not only are 30-50% of trending consumer search queries unique from one retailer to another, but normal month-over-month search variation can be attributed to seasonality or changing consumer interests. This creates an environment where brands need to be able to quickly and flexibly update product content to keep up. This growing complexity increases the need for cross-functional collaboration, especially between regulatory and e-commerce. Regulatory professionals often control approvals on new product content, proving to be a critical partner in this process. 

In order to help alleviate any content delays, brands need to create a workflow to include their regulatory teams from the beginning. As a strategic partner, e-commerce and marketing teams can help regulatory understand the value and impact of new attributes on product content and overall visibility, effectively reducing cycle time in regulatory approvals while keeping current with market trends.

Let’s illustrate with an example: 

Cyndi is an e-commerce content manager for XYZ Brands. Cyndi has used Label Insight’s Portfolio Optimization tool to identify that consumers are frequently searching for low calorie bread on Amazon, and consumer searches for low calorie bread have increased 175% since January of this year. She is also armed with the knowledge that there are 25 XYZ products that qualify as low calorie based on Label Insight’s derived attribution. Luckily, Cyndi’s regulatory and marketing teams already have access to Label Insight’s Attribute Management Platform, and can easily review and approve the low calorie attribute. Dustin, XYZ Brand’s regulatory manager, has questions about how Label Insight is deriving low calorie in the bread category. He pulls up the Attribute Management platform and reviews the Label Insight definition of low calorie, which is in line with FDA guidance and takes the RACC value for bread into account. Dustin is able to quickly review the definition along with the list of qualifying products to give his stamp of approval to add low calorie to XYZ’s e-commerce content for these products. Cyndi is able to simply turn that attribute “on” in the platform, and the low calorie attribute is automatically added to all applicable products and pushed to XYZ’s PIM for syndication to retailers. XYZ’s low calorie bread products are now discoverable to consumers and Cyndi is getting credit for the increased sales dollars her low calorie bread products are seeing. 

Label Insight Helps to Bridge the Regulatory Gap

In the example above, Cyndi and Dustin were able to leverage a few different Label Insight tools to develop an efficient internal workflow that enables a scalable content optimization solution. 

  1. Portfolio Optimization – Label Insight pairs consumer search data from top retail channels with our powerful attribution to help you understand what consumers are looking for in your categories, and which products in your portfolio qualify for these important attributes. 
  2. Attribute Management – This platform was designed to be a central hub where brand, marketing, and regulatory teams can collaborate and ultimately sign-off on product attributes. View the Label Insight definition of attributes, review a list of qualifying products, and turn attributes on or off for your portfolio. The decisions made in this platform seamlessly apply to every product in your assortment, so there is no need to verify data for each product individually.
  3. Item Setup – Push conventional data and attributes from Label Insight directly to your PIM. Label Insight has a direct integration with Salsify, but is able to work with you and your PIM provider of choice to set up a direct link or provide data via spreadsheets in your required format. Our flexible technology makes it easy to have powerful attribute data wherever you need it, faster than any manual method could ever provide.

Reach out to our Subject Matter Experts to learn more about optimizing your partnership with regulatory to help increase product discoverability and your bottom line.