With personalized digital marketing, consumer packaged goods (CPG) brands now have greater opportunities to strengthen belief in their brand in ways that directly drive more revenue.
To get personal right, CPG companies must think locally and reach customers across all screens and devices.
Increase Awareness at a Local Level
Today’s consumers switch screens as much as 21 times per hour. To capture shortened attention spans, brands need more relevant messages. Marketers are making improvements on this front. A recent study from Nielsen, xAd and Telemetrics shows mobile users specifically now engage with ads more frequently. What makes those message work? Location, location, location.
The sportswear company Columbia spread awareness of their winter clothing line Omni-Heat by leveraging location data and mobile search history in certain markets. Targeted banner advertising not only introduced a belief — e.g. “Columbia is the best brand to keep me warm this winter” — but also used location data to identify nearby retailers like Dick’s Sporting Goods carrying Omni-Heat. Shoppers knew exactly where they could get the product they fell in love with at a trusted, nearby retail location.
Customers welcome more personally relevant experiences like localized messages. A recent Yahoo/IpsosMediaCT study found about two-thirds of consumers accept that their location and online behaviors fuel marketing messages. The study also indicated clear advantages to personalized content in every notable measurement of customer sentiment, including inspiring trust and curiosity.
Deepen Brand Engagement and Customer Loyalty
Providing utility or amusement can help push CPG products into shopping carts. Eighty-eight percent of consumers say they are more likely to add a product to their offline shopping list if they have had a positive online experience with the brand. Personalized experiences are often the most positive ones.
For example, Post Foods and Heinz embrace personalized loyalty programs, offering an assortment of virtual rewards, Visa Reward Cards, sweepstakes prizes and in-store coupons. Through the app SavingStar, Heinz incentivizes not just in-store purchases of its Smart Ones brand, but does so by creating an engaging, personalized experience for its customers. Shoppers can redeem discounts through the app simply by taking photos of their receipts for Smart Ones products. Their users love the program because it is easy to use, offers great discounts, and is highly relevant to their customers’ personal interests and lifestyles. Likewise, Post partnered with MapMyFitness to accomplish similar results.
Clorox enticed Bachelorette viewers to engage more of their advertising by having them click into a second-screen experience while watching the popular ABC television show online. This screen allowed viewers to score points and vote on “bleachable” moments (i.e., the ones they’d like to erase) from the show. The ad had a 78 percent engagement rate and Clorox plans to use the results to help drive further segmentation and a more nuanced understanding of customer interests and behavior. While this example does not explicitly feature personalized messaging in the ad, it does reflect personalized targeting based on demographics and interest in their customer base.
Inspire Action and Drive Sales
A majority of retail sales (94% percent) still take place in brick-and-mortar locations. So while digital tactics like online display, video and mobile ads have a significant impact on shaping brand perceptions, the bottom line remains that any campaign must still drive in-store sales. By localizing and personalizing content, CPG marketers can better connect to the large majority of shoppers who do online research before heading in-store.
Customers expect relevant discounts. For example, childless individuals do not want to be served mobile ads for baby formula. CVS uses customer behavioral data to offer discounts on specific product at specific neighborhood stores. This helps avoid pitfalls like the aforementioned example, but also instills more urgency in a potential shopper. Instead of CVS saying “We know what you need,” their message is “We know what you need and we have it in stock at this location.” Location and personalization are directly responsible for making the ad more actionable for shoppers.
Meat Pack, a popular Guatemala-based shoe store, took an aggressive approach to hyperlocal marketing by using GPS technology to figure out when their customers set foot in a rival retailer. Those straying shoppers immediately received a mobile notification featuring a time-sensitive discount at the nearest Meat Pack. The result? Customers — more than 600 of them in one week — literally ran out of competitors’ stores and to a Meat Pack location.
The importance of strategies like these is that they directly inspire customers to not only trust the brand, but to engage it and then go in-store to make a purchase. According to 2014 study from the Path to Purchase Institute, 92 percent of CPG executives cite personalized marketing as being either very or somewhat important to their brand activation plans over the next two to three years. Additionally, 77 percent said the same about hyperlocal marketing. Brands have a huge opportunity to get out in front of their competition and execute both of these simultaneously if they begin personalizing their ads now. What’s more they will see better results for the goals they’re already striving to achieve.