2. p2
Content
Challenges ahead 3
5
6
7
11
The science of consumer engagement
Consumer engagement as key business driver
Take the 5 steps to consumer engagement
Are you ready to take the five steps to
consumer engagement?
4. p4
Challenges ahead…
Consumer packages goods (CPG)
companies are under pressure,
especially in their traditional European
and American markets.
Their marketing and sales executives
need to adjust their traditional
marketing and sales model, by adding
a new combination of digital, direct
marketing and multichannel selling.
They need to answer to the anytime/
anywhere shopping habits consumers
are developing, by getting in gear for
multichannel selling, either via
retailers/e-tailers or directly from the
brand website to the consumer’s
doorstep.
They need to ride the wave of the
new, digital consumer, and play into
the cards of the consumer’s demand
for product customization and his
expectations of personalized
communication.
And that’s where data driven
marketing comes in.
Data driven, direct-to-consumer
initiatives help increase basket size,
improve retention, increase brand
interactions and result overall in higher
consumer engagement.
Relevance is of course the key
engagement driver, so use all
available data to send the right
message to the right consumer via the
right channel at the right time.
Effect of data driven
campaigns
HIGHER CONSUMER
ENGAGEMENT
INCREASED BRAND
INTERACTIONS
IMPROVED
RETENTION
HIGHER BASKET
SIZE
www.marketingcharts.com
45%
38%
31%
27%
5. p5
Consumer engagement as key business driver
Consumer engagement to your
brand has 12 times more influence on
retention and repeat purchases than
consumer satisfaction and 18 times
more impact on word of mouth
recommendations (DMA Congress,
2014). Especially in a CPG
environment, where brand switching is
common, this insight should have
profound implications on the allocation
of budgets for retention and
relationship building.
Adirect consumer approach not only
impacts these sales and consumer
related metrics, it also directly
influences return on marketing
investment from a cost side.
Traditional investments in advertising
and sales promotion therefore need to
be complemented with a set of direct,
smartly differentiated initiatives.
Take the average CPG business:
• 80% of the category volume is
bought by 20% of its heavy users.
• Using traditional advertising, less
than 20% of this budget ‘reaches’
the heavy category buyers. On
average 50% is lost to non-buyers.
• Using sales promotion, more than
70% of the budget goes to your
best customers! Mainly, you’re
sponsoring those that would have
bought your brand anyway.
Wouldn’t it be great if you could
identify your heavy, medium and
occasional buyers and serve them
tailor-made messages and
promotions or goodies? If you could
nudge non-buyers to become
trialists with a sample or high value
coupon? Bring occasional brand users
to the next level, incentivizing them to
buy a larger package size this time?
And let your brand fans save up for a
special treat?
And the tools are at your grasp: the
emergence of additional digital
channels to get in touch with
consumers and proliferation of
technology, enabling one-to-one
custom printed mailings, are the
perfect enablers for highly relevant,
context based and in-the-moment
dialogues with consumers and
shoppers.
6. p6
The science of consumer engagement
Winning companies will engage the consumers in a
dialogue, serve shoppers customized content and offers,
give digital its rightful place in the CPG media mix and blur
the channels of engagement to become consistently
relevant to your consumer and earn their trust, engagement
and loyalty.
At Bisnode, we call this the ‘science of consumer
engagement’, because we strongly believe that the
underlying drivers of direct-to-consumer success for a CPG
company are the ability to:
• collect, integrate, analyze and manage omni channel data
so it delivers value for the company
• set up relevant and efficient omni channel one-to-one
dialogues between brands and consumers
• prove and improve return on direct/digital marketing
investment
8. p8
1.Define what you need to achieve
through your consumer
engagement strategy: objectives,
KPI’s and targets.
This is the most forgotten phase,
quite difficult but crucial to define
whether each of the consumer
engagement initiatives will contribute
to your final goals and measure the
success of your efforts. Start from your
company objectives and translate
them into clear, objectively
quantifiable marketing and digital
targets.
Questions you might ask are:
Carefully choose your battles.
Start small and expand your playing
field as you go (include more brands,
include new channels,…)
2.Define how to obtain a critical
mass of appropriate consumer data
and how to manage it.
Make a data collection plan,
including which data you want to
acquire about whom, how, how much
and how to keep track of this. Look at
the different contact points where
consumer data can be gathered,
throughout owned, earned and paid
media.
Look at what you already have. What
is the quality and recency of this data?
Where will you store the data and how
will you ensure a single consumer view
Whether you are a
beginner in consumer
engagement or a mature
adept of CPG customer
relationship management,
these 5 steps will shape
your startup or
improvement approach.
• How do I define ‘consumer
engagement’?
• What is my market potential?
• What is the potential size of my
consumer database? How will it
grow over the years (if I put the
necessary effort in it)?
• How to project sales impact when
chosen target groups are identified,
qualified, segmented and devel-
oped through a fitting consumer
engagement program?
• What are my campaign metrics?
9. p9
across all channels?
Build a solid foundation for all
subsequent consumer engagement
initiatives!
3.Ensure true consumer
relevance: segment & differentiate.
Define the segmentation types that
will be the most effective for your
business and make them actionable.
Get to know your identified
consumers/shoppers better and
define who to move in, move up, move
across or move out. Combine
consumer value and engagement for a
powerful differentiated consumer
approach, bringing only highly
relevant messages and leveraging the
strength of ambassador relationships.
4.Put insights into practice: define
when and how to talk to the different
consumer and shopper segments,
with which offer and through which
channel.
Deploy consumer communications
aligned to both business objectives
and consumer or shopper needs.
Combine data insights/profiles with
content and context to create highly
relevant, engaging messages. Engage
to register, don’t forget to onboard (!)
and connect.
Fully integrate digital and social
channels in your direct-to-consumer
communication strategy.
5. Measure, learn and adapt.
Make sure you have a proper
dashboard of your KPI’s: evolution of
your reach per channel, consumer
coverage, variable completion rates,
consumer/shopper profiles of both
campaign receivers as respondents.
Map the whole conversion funnel, from
reach to engagement. Evaluate media
spend for opt-in
collection/identification versus the
(potential) value of each of those
consumers. Did you recruit the right
profiles? Do these consumers really
engage with your brand(s)?
Optimize and test your campaigns.
Reduce waste of money and maximize
the effectiveness of your budget.
Adapt your acquisition, segmentation,
communication and engagement
strategy, based on continuous
learning.
ENGAGE
TO
REGISTER
ONBOARD
ENGAGE /
CONNECT
SHARE REACTIVATE
10. p10
The ties that bind these 5 steps to consumer engagement are data and technology.
Technology is the engine and data the raw material for true consumer engagement marketing.
Properly understanding and using these two elements enables CPG marketers to push buttons in a way that is respectful,
relevant and engaging to the consumer or shopper.
Convert your data into a competitive advantage.
Give consumers the best possible, engaging brand experience.
And make sure this positively impacts your ROI.
12. p12
For each step, you might need CPG tailored solutions and
the advice, support of people who have been there before.
Bisnode, a data driven consumer engagement agency,
enables CPG companies to reach consumer engagement
through data and technology. We bring along a long track
record, with international CPG industry leaders, in
consumer engagement strategy, digital and social media
strategy, data in all its aspects, campaigns and analytics.
An Louwagie
Business consultant
an.louwagie@bisnode.be
T. +32 2 555 97 67
Bisnode
Researchdreef 65 Allée de la Recherche, 1070
Anderlecht
T. +32 2 555 94 44
info@bisnode.be
www.bisnode.be
