Beyond the store aisle: How FMCG brands are winning with digital engagement

Traditionally FMCG brands were dependent on their retail channel to reach consumers. Now, in the age of digital disruption, passive consumers are being reimagined as active participants in brand experiences, making digital practices for FMCG crucial. The change is evident—for example PepsiCo’s DTC channels now provide hand-curated product bundles, special offers, and personalized suggestions, leading to higher engagement and convenience.

As digital transformation continue to become more prevalent, too many FMCG brands are still mired in the way they tackle digital practices for FMCG development. According to McKinsey 90% of executives reported having embarked on digital transformation initiatives over the last two years, yet few had a measurable effect on revenue or expense. Why? A patchwork approach that fails to take into account customer expectations and does not put data-driven insights at the core of its digital engagement strategy would continue to elude the desired outcomes. What is needed is a clearly articulated digital engagement strategy that combines technology, personalization, and human touch with the adoption of the latest innovations.

In this blog, we will dive into the latest digital engagement trends in FMCG, and understand why engagement is key to FMCG success.

New digital engagement trends in FMCG

The demand for personalized experiences is higher than ever

Customers expect brands to know what they require and deliver content accordingly, with personalization being a central aspect of digital engagement. According to research, personalized content experiences are shown to generate 68% greater CTA engagement and nearly four times more demo requests than regular content. FMCG brands leveraging AI and data analytics to create hyper-personalized experiences are seeing better conversions and higher brand loyalty.

On-demand engagement is the new norm

Today’s consumers don’t watch content only at the time of release. Studies show that 44% of viewers of webinars engage after the event, underlining the need to promote content longevity. Converting live content into different formats such as e-books, blog posts, and short videos ensures ongoing engagement and maximizes content ROI in the future. A structured on-demand strategy and digital practices for FMCG allows brands to build,  lead and create ongoing customer relationships.

Scaling digital learning & certification programs

The FMCG players are using digital platforms more and more to train consumers, certify products, and run training programs in order to create deeper engagement. Authentic digital credentials like completion badges or learning certificates build brand credibility and customer trust. With the display of systematic learning programs, brands attain thought leadership reputation along with driving consumer confidence and long-term involvement.

The advent of AI & Machine Learning in engagement

Machine learning and AI are transforming the way FMCG brands engage with customers through touchpoint automation. Chatbots powered by AI and predictive analytics enable brands to offer customized suggestions, personalize marketing campaigns, and enhance customer care.

Omnichannel strategies are becoming a competitive necessity

Today’s consumers engage with brands at numerous digital and physical touchpoints, from mobile apps to physical retail stores. Brands providing seamless omnichannel experiences benefit from increased customer retention and brand loyalty. Having consistency in all touchpoints—social media, e-commerce websites, or store outlets—is important in providing frictionless customer experience that sparks engagement and trust.

Why engagement is more critical than ever in FMCG

FMCG brands have been pursuing a volume-led strategy in the past three decades. But with the rise of e-commerce, social commerce, and AI-driven experiences transforming the way people interact, brands must employ digital practices for FMCG to recover. Harnessing strategic digital transformation initiatives ensures FMCG firms gain a competitive edge by facilitating:

Improved customer experience (CX): AI-powered chatbots, real-time analytics, and predictive insights enable FMCG companies to foresee customer needs before they happen. Unilever, for example, employs AI-powered supply chain analytics to forecast demand volatility, lowering stockouts by 30%.

Efficiency of operations: IoT sensor deployment in warehouses and AI-based inventory management has reduced logistics costs for top FMCG players. Nestlé collaborated with Coupa to adopt cloud modeling, improving inventory management and reducing replenishment lead times. ​

Data-driven decision making: Organizations based on digital platforms can see what their customers want, how they are buying, and what’s ahead—putting them ahead in the competition.

Personalized marketing: Brands are able to create tailored campaigns that speak to specific audience segments through access to first-party data. Example: Coca-Cola leverages AI-powered social listening to drive real-time adjustments to marketing campaigns through sentiment analysis.

However, majority of the brands do not manage to achieve the optimal balance of digital and human touch. FMCG consumers are reported to be more attracted to human touch than consumers in other industries, as indicated by a Merkle study. Brands need to integrate technology and digital practices for FMCG without alienating  consumers who are still looking for personal touchpoints.

The key elements of digital engagement in FMCG

A good digital engagement strategy is not content-related—it’s about customer connection. Brands that are implementing digital practices for FMCG properly ensure that their messaging is:

1. Relevant and value-driven

People are bombarded with content, but just 27% of FMCG digital campaigns are speaking to their target audience. Why? Far too many brands are selling what they want consumers to see rather than providing what consumers really require.

Utilizing first-party data in serving extremely customized content that addresses the interests, lifestyle, and purchasing behavior of the customers is paramount. Procter & Gamble (P&G) optimized its digital content approach by leveraging AI-driven analytics to generate and individualize ad variations dynamically depending on the behavior of the audience, demographics, and historical engagement.

Instead of launching a solitary one-size-fits-all campaign, P&G tested a variety of ad creatives across different customer groups and allowed AI to determine which messaging, imagery, and formats performed with each audience. By optimizing content adaptation on channels i.e., Instagram, YouTube, and connected TV commercials, P&G successfully made every digital touchpoint highly engaging and relevant. It created a 30% lift in engagement, better ad recall, and conversion rates on all their digital platforms.

For example, in promoting its Olay beauty brand, P&G’s ad optimization through AI allowed it to make prompt creative changes in response to user response. The test scanned what attributes of the products and what copy were creating the most responses and, through that insight, allowed the company to optimize targeting along with enhancing ad performance. The campaign drove considerable amplified brand engagement with an increase in return on advertising spend (ROAS).

2. Personalization at scale

Personalized experiences are 68% more effective at driving engagement than one-size-fits-all campaigns. But personalization isn’t just about greeting a customer with their first name—it’s about thoughtfully creating product recommendations, personalized offers, and predictive suggestions.

One way to do this is to use AI-powered recommendation engines to offer hyper-personalized product recommendations based on browsing history and purchase behavior of customers. L’Oréal has transformed digital interaction in the beauty and skincare sector by leveraging AI-based skincare diagnostics to offer hyper-personalized product suggestions. With its AI-driven tool, Skin Genius, L’Oréal allows consumers to scan their skin type, texture, hydration, and issues using only a smartphone camera or webcam.

The AI platform, having learned from thousands of images of skin and the expert opinions, scans fine lines, wrinkles, pores, and even skin tone irregularities. The platform, based on the scan, then suggests personalized skincare routines, including cleansers, serums, and moisturizers that are best for the person’s particular skin requirements.

Further, Digital practices for FMCG not only improve customer experience but also boosts product discovery and purchase intent. As reported by L’Oréal, customers who engage with the Skin Genius tool are 2.5 times more likely to buy than those who do not.

3. Interactive and immersive content

Customers interact twice as much with content that incorporates videos, polls, live streaming, and virtual try-ons. Utilizing interactive content hubs, virtual shopping assistants, and experience-based gamification can help promote customer loyalty.

For example , Mondelez International reinterpreted digital engagement with its beloved Oreo brand with the introduction of an augmented reality (AR) shopping experience where consumers can discover new flavors through highly interactive means. With a mobile AR experience, consumers scan Oreo packages or go online to an AR hub to get a virtual taste experience where consumers can see and learn about the various flavors, ingredients, and pairings available before purchase.

The AR experience also allows consumers to combine flavors, see behind the scenes of how Oreo is made, and engage in interactive challenges and games. The gamification method not only increases the shopping experience but also constructs brand interaction and social sharing.

To further bridge digital interaction and drive purchase, Mondelez complemented the AR campaign with e-commerce websites to enable users to transition from discovery to purchase smoothly. Users were able to tap directly from the AR experience to online stores, which was easy to buy.

The effect was stark—Mondelez recorded a 15% spike in digital engagement and strong boosts in new Oreo flavors’ trial rates. With immersive digital behaviors adoption in FMCG, the brand was able to turn an otherwise passive shopping process into an engaging and memorable experience, closing the gap between offline shopping and digital exploration.

4. Omnichannel engagement for seamless consumer journeys

While not all digital channels are equally well-suited for engagement, one of the leading-edge digital practices for FMCG is omnichannel. Consumers prefer frictionless continuity across digital and physical touchpoints—whether on a mobile app shopping through products, in-store, or through social media.

FMCG brands need to bridge social commerce, online marketplaces, physical stores, and mobile apps to create frictionless customer journeys. Walmart has greatly improved its customer experience with its strong click-and-collect platform, Grocery Pickup. Customers are able to shop groceries and other products online and choose a convenient pickup time for the local store location.

When customers come to the store, they have their orders brought to their cars by specially trained Walmart associates, which is convenient and easy. This click-and-collect combination of in-store pickup and web ordering not only is time-saving but also convenient, catering to the demands of evolving shoppers today. By its unification of digital convenience and physical convenience, Walmart’s click-and-collect service contains the best model of a great omnichannel retailing strategy, presenting a seamless and intuitive experience across all customer touchpoints.

5. Measuring digital engagement success

It is not only essential to have a coherent digital engagement strategy, what is equally important is monitoring its performance and ensuring continuous adaptation and improvement.

Monitoring the performance of digital practices in FMCG involves monitoring key performance indicators (KPIs), including:

• Customer Satisfaction Score (CSAT) – Quantifies the level of customer satisfaction with digital engagement.
• Engagement rate – Monitors the proportion of consumers engaging with content.
• Customer Lifetime Value (CLV) – Quantifies long-term revenue potential per consumer.
• Net Promoter Score (NPS) – Monitors customer loyalty and willingness to recommend a brand.

What is essential is a real-time data driven monitoring process, where KPIs of each digital initiative are not only tracked for course correction, but ensuring that the digital initiatives are in tune with the company’s overall brand and operational strategy. Each of the key digital engagements a brand pursues needs to ensure a positive impact on the key organizational and customer engagement level KPIs that the firm intends to achieve.

Future-proofing digital interaction in FMCG

As digital activity in FMCG keeps evolving, brands must embrace AI, automation, personalization, and omnichannel strategies to stay ahead. Technology is key, but blending digital with human touch is vital for long-term engagement and loyalty.

Thus, the following in a nutshell are the best practices FMCG companies need to follow to ensure its digital engagement strategy is optimal

1. Use AI-enabled chatbots and deliver real-time support
2. Conduct webinars and virtual summits to educate and engage
3. Develop on-demand content hubs for continuous engagement
4. Create targeted campaigns using data-driven insights
5. Deliver a smooth, hassle-free omnichannel experience

By following these best digital practices  FMCG, brands can not only boost engagement but also drive sustainable revenue growth in a digital-first world.

Need to update your digital engagement strategy? Learn how Netscribes can help your FMCG brand remain at the forefront.