Data-driven marketing

Part 1 : Why consumer engagement is a key business driver for FMCG

An_Louwagie-170907_Bisnode_Portraits_Print-44.jpg - 28 Mar 2018

The new consumer puts FMCG companies to the challenge

Today consumers enjoy the widest choice and an almost instant fulfillment of their needs. They switch effortlessly between brands. They can shop anytime and anywhere. This forces Fast Moving Consumer Goods companies to get in gear for multichannel selling: either via retailers and e-tailers, or directly from the brand website to the customer’s doorstep. Moreover, new technology has raised consumer expectations about personalized messages and customized offers. Relevance is vital in a world where the consumer is constantly bombarded with information.

In order to stay top of mind for new purchases and repurchases, FMCG brands need to boost customer engagement.


What is consumer engagement?

Consumer engagement is about the degree and depth of interaction between the consumer and a company or brand. The new consumer has a wide choice of channels to interact with FMCG brands: from stores and e-commerce sites to smartphone, mail and social media.

To connect to the consumer at the right time with the right offer FMCG companies need to adjust their traditional marketing and sales model. They need to reinforce it with a new mix of digital & direct marketing and multichannel selling.


12x stronger impact on repeat purchases

Consumer engagement has 12 times more influence on retention and repeat purchases than consumer satisfaction*. It also has 18 times more impact on word of mouth recommendations*. In other words: consumer engagement is essential for retention and relationship building.

*DMA Congress 2014.


The cost of sending the same offer to all

  • Only 20% of the buyers of a FMCG brand are heavy users. They represent as much as 80% of the total turnover.
  • Less than 20% of your traditional advertising budget reaches your heavy buyers. On average 50% is lost to non-buyers.
  • More than 70% of a sales promotion budget goes to your heavy users. This means that you are sponsoring customers who would have bought your brand anyway.


Optimizing efficiency with a one-to-one approach

What if you could identify your heavy, medium and occasional buyers to target them with tailor-made messages and offers? Just imagine:

  • You could nudge non-buyers to try out your brand
    with a sample or a high value coupon.
  • You could upgrade occasional users in the customer pyramid by enticing them with volume discounts

  • You could reward your best buyers by inviting them
    to save for a special treat.


Which tools do you need for effective customer engagement?

New digital channels like e-newsletters, web search, retargeting and social media offer new possibilities to set up relevant dialogues with customers and shoppers. Printing technology makes fully personalized mailings cost-efficient.

But the most important tool to target the right message to the right person at the right time is data intelligence.

How? That’s the subject of the 2nd part of this customer engagement special:

Part 2: How data driven marketing powers
effective FMCG customer engagement

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