Maximizing revenue for CPG companies through store level ... · ...
Are Your CPG Brands Maximizing the Return on Your Digital Investment?
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Transcript of Are Your CPG Brands Maximizing the Return on Your Digital Investment?
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Are Your CPG Brands Maximizing the Return on Your Digital Investment?
October 2, 2012
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Who we are
John LaRoccaVice President, Media SolutionsdunnhumbyUSA
Judy BaharySr. Vice President, Agency & CPG Market SolutionscomScore
Ryan KrennSenior Manager, CPG Digital Marketing SolutionsAccenture Interactive
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About our companies
dunnhumby is the leader in personalizing the world’s experience of retailers and brands. We help companies put the customer at the center of every decision by using our insight to improve customers’ experiences and communications to earn their lifetime loyalty..
Accenture is a management consulting, technology services and outsourcing company, which has offices and operations in more than 200 cities in 54 countries.
comScore is a global leader in measuring the digital world and preferred source of digital business analytics.
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Agenda
Background: The Need for this Study
Research Methodology
Findings
Key Takeaways
Future Research
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The need for this study
Effectiveness of CPG websites is a mystery– CPGs invest millions in brand websites and social media, yet struggle to show how they
influence sales
Little is known on what works online– Digital agencies are always coming up with new ideas and recommendations for CPG
websites, but little is known about what works
Gap between web and in-store sales– Web analytics & online panels measure browsing leading to an online purchase– Most CPG purchases are made offline - gap between site visits and offline purchase
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Research objectives
Do consumers visiting a brand’s
website buy more than non-visitors?
Where are brand buyers
spending their time online?
What website features drive in-
store sales?
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Integrating data sources
1 MillionUS Internet Users
60 Million Households
Advertising Exposure
UPC Scan Data
Website Visiting & Search
Online Transactions
Video
Loyalty CardSingle-source,
privacy protected
data linking online
activities and
in-store buying
behavior
at the HH level.
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Accenture Web Evaluator (AWE)52 metrics scored with benchmarking for 350+ leading global sites
BrandingClear “welcome to brand” contentCompelling brand propositionConsistent message onsiteClarity of message
Engagement Surveys, demos, live chat, tools,
tutorials to interactively engage Downloads - apps, audio, video,
buying or ‘how-to’ guides, games Contest, sweepstake, promotions
GlobalizationEasy switch to other countriesLocal language content &
currency, customer serviceConsistent look & feel across
languages & countries
Relationship BuildingLoyalty program, CRMPersonalization & customizationLogin registration provides custom
content, news, games, product recommendations, saved basket
Link navigation, call-to-actionSimple menus, fast load timesUser driven intuitive navigationSite mapsMultiple integrated routes
Navigation
Daily refreshed contentProduct comparison featureRatings, reviews, product benefitsProduct selection featuresSeparate product & corporate info
Information
Instructions, manuals, recipesEffective self help, demos, FAQsService via email, chat, phoneAllow feedback via reviews,
surveys, forums
Service CommerceEasy, secure purchaseClear pricing & promotion infoAccessories & related productsOmni-channel on+offline - returnStore locator
SocialPopular social featuresActive community posts & UGCBrand participation with lively
discussions, deep knowledgePromotional events Nike+ 10K run
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Research methodology
Examined 10 food & beverage + household product brands: – Between $40 million and $3 billion in annual sales– 5%+ household buyer penetration– Between 100,000 and 2.3 million unique site visitors a month
Study period: September 2010 - February 2011
For confidentiality, individual brand results cannot be disclosed
Represent a wide range of website and buyer behaviors
Findings presented to the FMI and GMA (joint sponsors of the research)
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Findings
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Most CPG brand websites attract relatively few visitors
Under 100 100-199 200-299 300+
64%
24%
4% 8%
Websites of 25 Largest CPG Brands(Defined By Buyer Penetration)
No. of Monthly Unique Visitors (000)Source: comScore, 2011
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Some CPG websites drive incremental in-store spending
On average, website visitors spend 37% more than non-visitors …
but one brand achieves a 105% incremental spend from visitors vs. non-visitors
For 20% of brands, web site visitors bought LESS THAN non-visitors. What does that say about the quality of the online experience?
High
Low
Average
205
83
137
Brand Spend
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High
Low
Average
102
71
92
Brand Price/Unit
Website visitors pay less per unit than non-visitors
On average, website visitors pay 8% less per unit than non-visitors … couponing strategy?
but some marketers earn 2% higher unit price from visitors using brand value messaging
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Engagement does not translate to exclusivity
Website visitors spend 53% more in the category than non-visitors …
and purchase 58% more units in the category
Series1
$6.86
$4.83
Visitors Non-Visitors
Series1
6.4
4.5
Visitors Non-Visitors
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BRAND X Baseline
Annual Website Visitors 5,979,041
Incremental sales per HH/Year $8.64
Incremental sales per Year $51,658,914
Est. Contribution Margin 30%
Incremental Margin per Year $15,497,674
Illustrative case for CPG digital marketing
Internet ROI Study results
Value of one Brand
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Features of CPG brand sites
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Web site features that drive traffic, engagement, and sales
BUYER INDEX Time on Siteper Month As time on site increases, brand purchase in store increases
What Drives Time on site? • Fresh Content • Engaging experience via product ratings, sweepstakes, contests,
user generated content, recipes, video, & tools, surveys, demos, live chat, downloads - apps, audio, buying or ‘how-to’ guides, click-to-buy, and advergames
• Brand value messaging that provides reasons to buy brand
Philanthropic Mission
Presence of social cause on the brand site increases likelihood of in store brand purchase
Content Scroll More content on the brand site increases brand purchase in store
Which CPG web site features maximize off-line sales?
Business impact: Marketers need to generate a constant stream of fresh content in all channels to keep consumer attention and increase purchases.
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Who is doing it right?Product Ratings & Reviews (Video)
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Who is doing it right?
Printable Coupons
eNewsletter Program Signup
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Who is doing it right?Gamification
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Who is doing it right?
Click-to-Buy
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This is a BIG opportunity to drive engagement with the brand!
Illustrative case for CPG digital marketingWhat if Brand “doubled” traffic and engagement?
BRAND X Baseline AfterAnnual Website Visitors* 5,979,041 11,958,082
Incremental sales per Year $8.64 $8.64Incremental sales per Year $51,658,914 $103,317,828
Contribution Margin 30% 30%Incremental Margin per Year $15,497,674 $30,995,349
Incremental annual margin from digital brand experiences that create consumer engagement deliver rich experiences generate awareness engender an emotional connection to brand
margin +$15.5 million
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5 Key Takeaways
1. CPGs have significant potential to build engagement and preference
2. Most miss this opportunity because too few consumers visit their site
3. A few CPGs have online experiences that generate incremental sales
4. Requires fresh content and a clear call to action
5. Integration of online and in-store data needed to measure the impact of digital for CPGs
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Future Research: Brand websites vs. social networks
Brand WebsitesSocial Media
Fans Friends of Fans
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Are Facebook fans responsive to the messaging?
Total Internet Brand X Fans
2%
6%
BrandX.com Visitation
10%
90%
Facebook Activity
Commented on or "Liked" a post by Brand X
Did not respond to any of Brand X's messaging
Evaluate Facebook activity including commenting or “liking” a post
Look at online behavior of exposed fans: do they visit your website?
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Are fans & friends of fans more valuable?
Spend per Household for Brand X and the Category
Look at offline spending of fans, friends of fans and non-fans Compare fan spend to brand website spend
Brand Spend/HH Category Spend/HH
$8.52
$19.96
$6.80
$17.32
$5.23
$10.55 Brand X FanFriend of FanNon FanBrand X Friend of Fan
Non Fan or Non Friends
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Who is visiting your brand site and who are your Facebook fans?
Compare the demographics of your website visitors and Facebook Fans to total Internet composition
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Females Males
52% 48%60%
40%65%
35%
GenderTotal Internet BrandX.com Visitors Brand X Fans
Hispanic African American
12% 10%16% 10%22%
11%
EthnicityTotal Internet BrandX.com Visitors Brand X Fans
55+
45-54
35-44
25-34
18-24
< 18
14%
9%
18%
31%
20%
8%
20%
13%
16%
25%
14%
12%
23%
16%
16%
15%
11%
19%
Age
Total Internet
BrandX.com Visitors
Brand X Fans
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Thank You!Ryan Krenn(414) [email protected]
Judy Bahary(312) 775-8836 [email protected]
John LaRocca(513) 632-0613 [email protected]
Accenture
comScore
dunnhumbyUSA
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Appendix
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Web site features that drive traffic, engagement, and sales
Buyer Index Importance
Time month 69% As time on site increases, brand purchase in store increases
Philanthropic Mission 10% Presence of social cause on the brand site
increases likelihood of in store brand purchase
Content Scroll 7% More content on the brand site increases brand purchase in store
86%
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Web site features that drive traffic, engagement, and sales
Time Per Month Importance
Fresh Content 74% More content refresh increases time spent on brand site (seasonal / monthly)
Promotion 8% Presence of brand value messaging (reasons to buy brand), increases time on site
Value Add Tools 4% Product ratings, user generated content, recipes, video, and tools increase time on site
Buy Online 4% Presence of a click to buy features increases time spent on site
90%