Personalised offers have become a pivotal focus within the marketing landscape of Fast-Moving Consumer Goods (FMCG) companies. This strategic emphasis has persisted over the last decade, highlighting the significance of tailor-made offers to individual consumers.
Personalised offers deliver precisely what each prospect or current customer requires, presenting a unique proposition to every individual.
Historically, personalisation efforts incurred substantial costs due to the challenges of accessing individual consumer data. Consequently, the returns on such endeavours often fell short of those achieved through mass marketing or segmentation strategies.
Hence, FMCG companies predominantly relied on mass or segmented sales tactics, where consumer needs within a particular segment exhibited similarities, distinct from other segments.
However, a paradigm shift occurred with the advent of receipt processing technology, dramatically reducing the cost of acquiring first-hand, individualised data for FMCG companies.
This marked a pivotal moment as it became economically viable to furnish existing customers with personalised offers, particularly for cross-selling complementary products. Engaging companies now provide FMCG entities with versatile marketing campaign platforms, empowering them to create personalised offers for consumers effortlessly. These platforms are not only user-friendly but also exceptionally lucrative.
A Compelling Example of Personalised Marketing
Let’s dive into a captivating illustration of how personalised marketing campaigns, driven by first-hand receipt data, can revolutionise the success of an FMCG (Fast-Moving Consumer Goods) company. Consider the scenario where our FMCG customer company focuses on promoting its detergent product through a tailored marketing initiative.
Step 1: In this innovative campaign, the consumer is offered a rewarding incentive, such as a cash-back reward. To qualify for the reward, the consumer must purchase the detergent and subsequently upload a picture of the purchase receipt, along with his or her email address.
Step 2: As the consumer submits their receipt, our FMCG company gains valuable insights from it. In this instance, it becomes evident that the same customer had also purchased baby diapers during their recent shopping trip – a revelation derived directly from their receipt. This insight presents an opportunity for our FMCG company, as it happens to have a baby diaper and also a baby food product in its portfolio.
Step 3: Capitalising on this newfound knowledge, the FMCG company seizes the opportunity to initiate a personalised cross-selling endeavour. They craft a customised offer for this unique customer, promoting their baby diaper and also baby food product. These offers might include enticing discounts, further incentivising the customer to try the products.
Result: By extending this personalised offer, there’s a high likelihood that the customer will, at the very least, give the baby diaper or the baby food products a try. In these offers, an additional reward or discount is a compelling motivator. Through this strategic manoeuvre, a new loyal customer for the baby diaper and baby food products is cultivated.
Advanced Strategy: Behind the scenes, the process of designing and disseminating these personalised offers for our FMCG company is powered by a sophisticated machine learning program. This program is adept at identifying existing customers who exhibit potential interest in cross-products, optimising the marketing campaign’s effectiveness.
In summary, leveraging personalised marketing campaigns fuelled by receipt data and machine learning can not only boost sales but also foster customer loyalty and expand the product portfolio. This dynamic approach marks a significant shift in FMCG marketing strategies, enabling companies to connect with consumers personally and maximise their market potential.
What Do Stats Say About The Practice Of Personalised Offers?
*Source: Blogging Wizard
90% of leading marketers in North America say; personalisation significantly contributes to business profitability.
89% of businesses are investing in personalisation.
76% of consumers get frustrated by businesses who do not offer personalised experiences
69% of consumers want the convenience personalisation provides, but only if it includes data they’ve shared themselves.
83% of consumers are willing to share data with brands to receive personalised experiences. (All the world)
80% of businesses believe privacy rules will have a positive impact on personalisation.
57% of businesses want to see increased retention and conversion rates from personalisation strategies.
78% of consumers are more likely to respond favourably to personalised emails from retailers
(North America, Europe, Asia)
Businesses also reported using personalisation in…
Email marketing – 60%
Display ads – 60%
Mobile app – 56%
In-store/POS – 52%
Increasing Brand Loyalty
The effectiveness of personalised offers targeted at existing customers cannot be overstated. This strategy not only proves to be more profitable than acquiring new customers through fresh marketing campaigns but also incurs significantly lower lead generation costs.
Additionally, personalised marketing campaigns directed at existing customers tend to secure a larger share of the customer’s spending.
- Enhanced Profitability: The key advantage of personalised offers to existing customers lies in their profitability. When compared to the expense of attracting new customers through entirely new marketing campaigns, cross-selling or upselling to an existing customer base stands out as a more financially rewarding approach. Existing customers already have a degree of trust and familiarity with your brand, making them more receptive to tailored offers.
- Cost Efficiency: Another compelling reason to prioritise existing customers is the substantial disparity in lead generation costs. The process of acquiring new clients typically demands substantial resources, both in terms of time and financial investment. In contrast, personalised offers to existing customers leverage your established relationship, reducing the costs associated with attracting and converting.
- Maximising Share of Wallet: Personalised marketing campaigns aimed at your existing customer base are adept at capturing a larger share of their wallet. You can tap into their existing loyalty and buying patterns by tailoring new offers based on their past preferences and behaviours. This not only increases the chances of repeat purchases of the currently purchased product, but also encourages customers to explore additional products or services within your portfolio.
- Considering Expansion: While personalised offers to existing customers are highly effective, it’s essential to recognize that if your company is venturing into new markets, lead generation for new clients becomes a necessary and strategic move. Building a customer base from scratch is unavoidable in these scenarios, and personalised marketing campaigns of the current product can still play a pivotal role in establishing initial trust and brand recognition.
In conclusion, personalised offers to existing customers represent a potent strategy for maximising revenue, minimising costs, and deepening customer relationships.
However, for companies that are looking to expand into new territories, a balanced approach that combines efforts to attract new clients with a focus on nurturing existing customer relationships is often the key to sustainable growth and success.
Finally, a few words on launching new products through personalised offers:
Launching new products with personalised offers is a strategic approach that can captivate consumers and drive success in today’s competitive market. Businesses tailor promotions to individual preferences to create a deeper connection with their customers. This not only increases the likelihood of conversion but also enhances brand loyalty.
Personalized offers consider a customer’s past purchasing history, demographics, and browsing behaviour, allowing for the customization of discounts, bundles, or exclusive deals. This approach not only makes customers feel valued but also increases their anticipation and engagement with the new product launch. Ultimately, it’s a win-win strategy for both businesses and consumers, fostering lasting relationships while successfully introducing innovative offerings into the market.