Owning the Right Moment, Not the Data

Ah, first-party data. The gold standard in today’s hyper-connected, data-driven world. For FMCGs, however, unlocking its potential is anything but straightforward. Let’s explore two critical aspects: what exactly first-party data means and why it presents unique challenges for FMCGs.

1. What is First-party Data?

It is information collected directly from a company’s interaction with its customers, making it highly accurate and reliable. This data can be:

• PII (Personally Identifiable Information): Data that identifies individuals (names, emails or phone numbers).

• Non-PII (Behavioural Data): Information that does not directly identify an individual but tracks their actions. This can include website behaviour, interaction with digital advertising and so on.

2. Simple? Not When It Comes to the FMCG Sector

First, addressing PII. Getting a hold of an individual’s name, phone number and email address is a complex process, especially if a brand is going about it in a compliant manner. Obtaining customer data requires explicit consent – not only to collect the data but to use it for future marketing. For telecom companies, this process is more straightforward. Users provide their ID details to access services. Similarly, retail clothing brands collect data when customers voluntarily sign up for deals and discounts.

However, the process of purchase is different for FMCGs. Consumers do not purchase from FMCGs directly; it is always via a retailer (a kiryana store, a hypermarket or a quick commerce app). This retail model places them at a disadvantage because it is the retailer, not the FMCG, which owns the direct relationship with the consumer and thus their data. Retailers would rarely have this data in an organised format, and even if they did, they are highly unlikely to share it with the brand to retain their competitive advantage. For example, when a customer buys a bottle of cooking oil from a supermarket, the oil company receives little to no data about the buyer’s demographics, shopping habits or preferences. This is in contrast to tech companies like Netflix, which capture detailed user data from every interaction on their platform.

3. An Ongoing Challenge

The challenges also exist when it comes to non-PII data that can be collected from owned websites and app interactions. Many FMCGs (local and global) have experimented with global and local e-commerce websites and apps, but the nature of the FMCG makes this a challenging model. People rarely purchase items like milk, oil and bread without complimentary products such as meat, masalas, eggs or tea. Shoppers want convenience, and they often turn to multi-brand retailers where they can get everything they need in one go, rather than visiting multiple websites for individual FMCG brands. Without the ability to provide this seamless shopping experience, standalone FMCG e-commerce platforms struggle to meet consumer expectations and drive consistent sales.

The situation is similar for FMCG brands that develop standalone apps. Think about the apps we use regularly – social media, messaging, banking or food delivery. Research shows that most apps are left unused or are eventually uninstalled because they do not offer ongoing value to a consumer’s daily life. For FMCGs, branded apps face the same issue. Even if a brand is loved, getting consumers to consistently use an app for products like milk, soap or rice is tough. They simply cannot compete with the apps that are integral to our digital lives, like music or ride-hailing services.

4. Try and Try Again

Brands deploy tactics like on-ground DTC programmes, sponsorships and integration in on-ground events, where consumer data can be collected in exchange for a brand experience, such as sampling, social media contests and giveaways, where consumers participate to win prizes and are incentivised to give their data. The issue here is that they are all tactics, and in a country with 200+ million individuals, there is only so much an on-ground DTC programme or contest can scale without an overarching strategy and a data hub. Another challenge is that if you have customer data, such as a name or a phone number, it is only a snapshot of a point in time. Other than perhaps using that data for a customised audience on an ad platform, we do not know what they are doing the rest of the time. What are they purchasing as complimentary products? How are their preferences changing over time?

5. FMCG Solutions Don’t Have to Be Complex

As a consumer, how often do you genuinely reflect on your FMCG purchases? Do you feel a ‘relationship’ with the brand of detergent, toothpaste or cooking oil you grab from the shelf, or are they merely routine buys – sometimes even impulsive? Given how habitual and transactional these purchases tend to be, FMCG brands face a critical question: how much meaningful insight can they realistically gain through sophisticated data analysis when so much of their product usage is driven by routine? The truth is that although consumers can be loyal to certain FMCG brands, this loyalty often stems from convenience or habit, not engagement. For brands, the challenge lies in recognising that standard methods of data collection and digital engagement may not offer the depth of insight needed.

The real opportunity for FMCGs is to rethink how they can leverage broader ecosystems to create relevant touchpoints that fit seamlessly into their consumers’ lives, rather than trying to force deep engagement in categories where it does not exist naturally. The strengths of FMCGs lie in their ubiquity – being present in every household, every store and every cart. While the quest for first-party data remains an important goal, FMCG brands may benefit more from a strategy that optimises their touchpoints across multiple platforms. Consider this. The real value for FMCG brands may not lie in granular consumer data but in the frequency and relevance of the brand interaction. Consumers may not form deep relationships with their hand soap brand, but they encounter it frequently in the shopping aisle, on social media and during in-store promotions. By refining these touchpoints through contextual advertising, omnichannel experiences and strategic retail partnerships, brands can stay top-of-mind without needing exhaustive consumer data.

6. Rethinking Success

In this sense, a touchpoint strategy becomes the true driver of success. By aligning more closely with consumer habits (whether through influencer marketing, sampling campaigns or seamless integration in e-commerce platforms), FMCG brands can engage with consumers at key decision-making moments without needing to know every granular detail about their lives.

Perhaps the real takeaway is this. First-party data may be invaluable for other industries, but for FMCGs, the game is different. Winning here is less about owning customer data and more about owning the right moments in the consumer’s daily life. By shifting the focus from data collection to creating impactful, relevant touchpoints, FMCG brands can still thrive in a data-centric world, on their own terms.

Urooj Hussain is Planning and Strategy Director, Brainchild Communications Pakistan. www.linkedin.com/in/uroojhussain1