Consumer Packaging Goods (CPG) Loyalty Programmes

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Introduction
Many of us have signed up to a supermarket, a bank, an insurance company and even a mobile provider’s loyalty programme.

 All the main supermarkets have a loyalty including Supervalu, Dunnes Store and Tesco.

Three and Vodafone both have loyalty programmes. 2016 saw both Bank of Ireland and Permanent TSB launch their loyalty programmes.

 The average American is a member of eighteen loyalty programmes. In Ireland, we are members of approximately four loyalty programmes.

 But how many of us are members of a Consumer Packaging Goods (CPG) brand’s loyalty programme?

Loyalty and Consumer Packaging Goods ( CPG)

 According to Ogilvy Loyalty Index BrandZ survey, the average value of a consumer increases 5 to 8 times if you can move that person up from brand engagement to brand loyalty. 

 For any brand, transaction data provides valuable insights into consumer buying behaviour. But retailers, not manufacturers, have historically gathered and maintained exclusive access to this data.

 So CPG brands like Coca Cola and Kellogg’s wanted to address this issue and so both brands launched their own loyalty programmes. These brands had three key challenges: 

  • Identify, retain and grow key household relationships
  • Build one-to-one relationships with end users
  • Deliver personalised, relevant messages and promotions to the end user.

To help address these challenges, Coca Cola launched https://www.mycokerewards.com/content/home.html and Kellogg’s launched https://www.kelloggsfamilyrewards.com/en_US/rewards.html#/browse/0

 My Coke Rewards was launched in 2006 and to date, over 11 million registered members have inputted 600 million codes.

 According to Kellogg’s, millions of consumers participate in the Kellogg’s Family Rewards programme. Thousands of consumers have recommended the programme to friends and family and the rewards website attracts the most traffic of any Kellogg’s site.

 Yet, very few CPG’s brands have a loyalty programme.

 The CPG industry is becoming increasingly fragmented and the ease at which consumers can find new products and even greater value continues to pose a challenge.

 These factors make the need to explore new brand marketing and loyalty programmes even more important.

 Loyalty can play a significant role in addressing many of CPG’s key marketing challenges;

  1. A loyalty or customer engagement programme can help drive sales of your brand without having to resort to price promotions or even discounting

For example, Kellogg’s Family Rewards® encourages members to ‘gift’ their rewards to schools or charities. This kind of emotional reward drives loyalty that transcends price promotions and provides a point of differentiation competitors can’t easily replicate.

  1. Use content and social media platforms to reward and drive further engagement

By rewarding customers for interactions with branded content, games, polls and social activities on social media provides another means of engagement. Programmes like My Coke Rewards offers customers points for interacting with selected content on their social media platform and doing activities that increase status levels in the programme. Gamificiation platforms also provide ways to play games, share photos and engagement with customers. 

  1. Gather and Use Customer Data For Segmentation and Personalization

Loyalty progammes help gather data and insights into your customers. Proof of purchase technologies and methods such as code on pack and receipt submission can gather details on exact frequency, brand and detailed SKU data of purchases and even details on customers’ other purchase preferences. 

  1. Drive advocacy and leverage Influencers

Brand advocacy is most powerful and trusted when real consumers authentically promote your brand through their own exception experience of your brand rather than influencers. Loyalty programmes can help drive advocacy by providing continuous value- added experiences that can encourage word of month and social sharing.

 Technology has been a barrier in the past. However receipt recognition, augmented reality and ibeacon technology is providing great opportunities for CPG brands.

 By rewarding customers for taking a photo of their receipt and uploading that receipt to the promotional website, brands are now able to capture transactional data on their customer without depending on the retailer.

Conclusion 

When developing loyalty programmes, CPG brands should understand that no one technology tool is likely to provide a comprehensive solution. To develop a full data picture, you need multiple systems. The future of consumer brand loyalty comes from deep relationships: bonds that are built through technology and data. The key to consumer retention in a fragmented market is trust. In addition to demanding value, consumers are looking to make more out of an increasingly valuable asset: time.

 

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Posted in Loyalty & Rewards

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