Every movement begins with a moment.
“Increase market share and expand the consumer’s usage of my company’s products.” Now that sounds like a strong Consumer Packaged Goods (CPG) executive strategy statement. To attract new consumers and increase revenue from existing customers, CPG manufacturers require a solution that will help them better understand consumers, (2) establish the value of each consumer, (3) leverage these insights to maximize each consumer interaction and (4) more effectively target their sales and marketing efforts. Ultimately, the goal is to increase revenue, improve efficiencies and centralize consumer data access and control. These aims can be achieved via modern marketing solutions and enablers — think Consumer Products Consumer Relationship Management (CP-CRM).
Today’s integrated marketing solutions enable CPG firms to analyze their consumer data across all direct-to-consumer touch points while also managing business and consumer relationships effectively — essentially a CRM platform that delivers on the following core tenets:
> A single view of the consumer – By bringing disparate consumer data into one environment from multiple sources and applying robust analytics to it, CP-CRM solutions allow CPG marketers to obtain a single view of the consumer. This enables them to gain unique insights into their business and consumer purchase behavior.
> The ability to “get, keep and grow” – Through an easy-to-use interface, CP-CRM solutions enable marketers to gain insights into consumer activity and behaviors that may help predict consumers’ future needs from the company. Once armed with these insights, marketers can make more intelligent decisions on how to get, keep and grow their consumer relationships.
> Flexibility – Optimal CP-CRM solutions have connectors and adapters to allow for the easy integration of additional data sources (e.g., syndicated, POS, loyalty, agency data).
As a marketer, solutions can often look the same or similar. The integrated marketing space is also crowded and evolving quickly as new upstarts look to challenge specific capability areas offered by the major players (i.e., those who built out CRM solutions in the early 2000s or acquired the functionality and capability). There are several key capabilities to consider as you think about the right Consumer Insights/CP-CRM solution:
> Summary and detail – Delivers powerful drill-down analysis along multiple dimensions for time series, trends analysis and other views with point-and-click ease.
> Insights via analytics – Allows you to perform analytics such as profiling, forecasting, anomaly detection, cluster detection, classification and regression, scoring, offer optimization and more. Data harmonization and refinement capability is central to enabling you to garner insights and use them in other analysis tools, campaign management and digital personalization interfaces.
> Built-in permission-based functionality – Companies can practice permission-based marketing by leveraging built-in, rules-based campaign management features that can be applied to all campaigns universally.
> Triggered, multi-step campaigns – Enables the build-out of longitudinal campaigns across any channel that uses events (e.g., responses) or time (e.g., no response) to trigger and maintain an even flow of communication to key targets.
> Closed-loop process – Gives marketers the ability to review campaign-on-campaign effectiveness.
> Target list optimization – Leverages advanced analytic and segmentation capabilities to precisely target consumers, ensuring they receive highly relevant and useful messages.
> Combination of personalization technologies – Incorporates a number of real-time decisioning algorithms (e.g., business rules, likelihood estimation, collaborative filtering and offer arbitration) to select the best offer for an individual at a particular point in time.
> Real-time analytics – Best-in-class solutions use offer-likelihood algorithms that select the best offer for a given consumer in real time based on likelihood analysis. These solutions examine consumer characteristics specified by the marketer to build an ever-more-refined profile of consumers likely to accept the offer. How does it work? Each time a consumer is a campaign target, the solution measures how closely the consumer’s characteristics match the aggregated profile for each campaign offer and assigns a likelihood of offer acceptance. The acceptance likelihood is used in targeting criteria to determine whether to extend a particular offer to a particular consumer.
> Fuels campaign velocity – Enables the marketer to create campaigns quickly without having to move data manually or detour from the marketing process with time-consuming steps such as navigating between analytical tools.
> Enables collaborative campaign development – Its easy-to-use, Web-based interface, strong security model and global marketing and permission rules allow marketers to work on campaigns efficiently and collaboratively.
> Coordinates interactions across all channels – Allows the CPG organization to present consistent messages across all inbound and outbound touch points, including direct mail, e-mail, direct sales, telemarketing and Web.
> Promotes brand loyalty – Builds a stronger relationship with a brand’s consumers by intelligently prompting them on ways to better utilize services via targeted recommendations based on any available data.
> Generates new revenue quickly – Delivers precisely targeted product recommendations and cross-sell/up-sell offers to visitors and consumers by acting on detailed consumer data. This is especially valuable in retailer-collaboration scenarios or when the CPG organization has a digital store presence.
> Facilitates cross-channel consistency – Ensures consistent treatment across the Web, contact center, and other interaction channels.
> Learns and adjusts – Captures consumer preferences in real time and automatically adjusts targeting based on the drivers of consumer behavior.
CP-CRM in Action
How would a Connected Consumer/CP-CRM solution look in CPG? Here are two scenarios:
Company A (CoA) – This CPG firm is focused on developing one-to-one relationships with its high-priority “segmented” customers. CoA uses the CP-CRM platform to get closer to its consumers. Through a better understanding of its consumer base, CoA is able to cross-sell and up-sell its consumers the most appropriate products. CoA utilizes the CP-CRM platform as a key enabler of critical business analysis and campaign management activities. The CoA brand team leverages the platform to market specifically to parents with children and invests heavily in life stage marketing to move a consumer through the products that parents use. Data inputs include digital and contact center, and the solution resides in the cloud — so analytics are available anytime, anywhere and require limited IT involvement.
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