Consumer Packaged Goods (CPG) marketers smartly utilize coupon campaigns to drive engagement, product trials, and sales. But with a cost on redemption, it’s vital that your campaigns drive ROI, too — and that you can measure the impact of each investment.
To invest smartly, many CPG marketers use digital campaign tools to uncover better audience targeting, campaign measurement, and loyalty incentives. In fact, 38% of U.S. companies utilize 6 to 10 different technologies for their marketing campaigns, and 24% use 10 to 20.
#1: Use first-party data to determine the right offers for your consumers
Too many CPG marketers use tactics that don’t drive insights on the campaign’s top-line impact. Additionally, with limited first-party purchase data, brands can’t optimize their offers based on consumer behavior.
However, the average consumer generates plenty of meaningful data along their path to purchase, and smart brands are leveraging this intelligence to understand which audiences are in-market for their products.
First-party data is created from your owned and paid marketing channels and generates the most significant insights and impact. First-party purchase data is a subset of this information and contains purchase behavior that enables marketers to understand how the elements of a one-to-one marketing campaign impact purchase behavior.
These insights — such as which offers attract a specific target audience, where they are redeemed (online, offline, and where?), and how different price points result in redemptions — let your brand optimize cost-per-unit moved and ROI. Moreover, with first-party purchase data, you can drive better incentives, not just coupons.
Promotional signals help you choose the right channels, too, and answer questions like: Is display worth my investment? Where should I prioritize my next campaign? Is influencer marketing valuable to sell my packaged goods?
In fact, according to RevTrax data, campaigns with intelligent offers have:
- 65% higher conversion rates
- 45% increase in customer loyalty
- 25% more database growth
- 25% more reactivated customers
Investing in a digital campaign tool or service that offers first-party data insights allows brands to create intelligent offers based on consumer behavior, preferences, and redemption information.
#2: Reward loyal customers with online and offline incentives
Highly targeted offers are a great way to increase brand loyalty. By providing consumers with custom offers based on past behavior, marketers can enhance customer retention by driving CPG sales. This tactic means that CPG firms need the ability to collect and analyze consumer data, and the agility to react quickly.
For example, you may start by rewarding new consumers with a high-value trial offer to initiate engagement, and encourage repeat sales with subsequent lower-value coupons. Offer testing is an efficient way to see what works best for your brand’s consumers and CPG strategy, giving you the ability to refine your efforts as you go.
Investing in solutions allowing you to create and maintain a customer database, automate segmentation and marketing efforts, and receive detailed campaign analysis will enable your brand to remain competitive. Keep in mind that data needs to be able to be collected and analyzed from multiple communication channels like email, direct mail, and web.
#3: Make sure digital offers are on-brand and easy-to-use
Many popular coupon services like Coupons.com have downsides for consumers — first, they don’t offer unique and tailored offers, and second, the interface is often unbranded and outside the CPG brand’s creative control. These services also have an adverse side effect for your brand, which is that you will mainly attract existing “deal seekers,” and your coupons can end up next to competitors’, too.
Instead of blending with a mass couponing service, invest in a digital CPG marketing campaign interface that is seamless and easy-to-use for consumers.
With RevTrax, you gain creative control of the entire buying process. First, you create digital promotions that are on brand. Next, you share this incentive in digital spaces that matter to your consumers, such as on your website and other eCommerce sites where consumers browse products, in targeted emails, through display advertising, and more.
By using serialized barcodes, you can also gain real-time insights on consumer redemption that help you optimize your campaign for the best channels.
Learn how to get the most out of your digital CPG promotions — download the noosa case study and see smart consumer insights at work.