How the Food and Beverage Industry is Using Big Data to Innovate
The secret ingredient for innovation in the food and beverage industry is Big Data. The science of understanding customer demand and changing tastes involves collecting and analyzing a vast amount of consumer data — from favorite dishes to social preferences.
The Need For Innovation
In Food Manufacturing, Will Berna reports that consumers are no longer satisfied with the status quo in the food and beverage industry:
Consumers continue to drive innovation in the food and beverage industry by demanding more from the brands that they consume. The data shows that consumers increasingly prefer brands that embrace authenticity, social engagement, traceable sourcing, clean labels, healthier ingredients and functional benefits. Smaller brands have reacted faster to these evolving consumer needs, making those brands ripe for investment or acquisition by both traditional investors and strategic buyers.
Although smaller brands would seem to have an advantage in being able to react faster and more agilely than bigger, more “old-fashioned” rivals, this is not a given. In a Forbes article, Bernard Marr reports that McDonald’s is banking on the power of Big Data to secure its future in a changing world:
Not only can customers order and pay through the McDonald’s mobile app and get access to exclusive deals, but when customers use the app, McDonald’s gets vital customer intelligence about where and when they go to the restaurant, how often, if they use the drive thru or go into the restaurant, and what they purchase. The company can recommend complementary products and promote deals to help increase sales when customers use the app. In Japan, customers who use the app spend an average of 35 percent more thanks in part to the recommendations they are provided at the time they place an order.
Food and beverage businesses don’t have to try to create the infrastructure to collect and analyze the massive amounts of data needed for these applications. Our team at LMS is experienced in designing systems to collect and analyze the data that powers transformational innovation. Call us today at 800.257.5902 so we can help.