The fast-moving consumer goods (FMCG) sector is one of the largest growing sectors in the world. With changing lifestyles, growing awareness, and easier access, the number of competitors vying for customers’ attention has only multiplied over the last decade.
Surviving in this sector entails capturing attention from the target audience with the right positioning in the market.
FMCGs have surrendered brand experience control
FMCGs are sold in supermarkets where the customer gets a homogenous supermarket experience, rather than an experience reflecting the brands on shelves. Brands can do anything they like to drive purchase intent but the minute your customer steps into the supermarket, right at the point of purchase, there are few ways for FMCG’s to influence decisions outside of discounting and paying for eye level shelf space.
When it comes to intermediaries (such as supermarkets, pharmacies, wholesalers and online retailers), brands often have little to no direct influence over them. However, these brands are reliant on the intermediary to administer and promote their brand to the consumer. The FMCG producer is at the start of the chain and the final customer is at the end of it, with the intermediary in-between.
This poses the question: How can FMCGs build relationships with their customers?
As brands who sell their products through intermediaries have no direct contact with their customers. FMCGs can have a relationship with their customers, but it requires disruption to the current distribution model in order for FMCG’s to regain brand experience control. The solution to this is investing in a loyalty program.
FMCG brands can increase customer loyalty and customer retention by investing in a digital loyalty program in order to essentially cut out the middleman. Some of the more obvious benefits of a rewards marketing program include customer retention, data collection, increased visits.
Although how can a digital loyalty program help FMCG brands increase their brand loyalty? This is where Loyale comes in.
We’ll outline the benefits of Loyale for FMCG brands below;
1. Direct to consumer communication
Loyale enables its users to have a direct channel to their customers with the ability to send push notifications, emails, alerts, coupons and more directly to their mobile devices. Customers can be notified of competitions, new products, and receive reminders about their loyalty status (i.e. “Hey John, you’re only 3 points away from a free X with any Y!” or “Purchase any of our products this Thursday for double points towards your next reward”).
2. Gain consumer data
Loyale allows brands to track and analyse consumer behaviour. It allows admins to gain access to invaluable information such as; what customers are buying, when they are buying it, how often they are buying it, and what they are buying in conjunction with it. These insights give brands the ability to make informed decisions about how to tweak their offering to further appeal to their target market.
3. Personalisation
It’s no secret that personalisation is important. Loyale allows its users to segment their customer base into not only different tiers to create a tiered loyalty scheme but also into different segments related to different demographics for example; age, gender, purchase frequency, purchased item etc. This therefore enables brands to send their customers increasingly tailored offers, communications and rewards. Whilst doing so can increase customer satisfaction rates to as much as 604%.
Sending emails with personalised content will cover both your active and lapsing audiences. Alternatively, use instant Web Push Notifications to maximise the readability (no opening required, native to each internet browser).
Admins have the choice of sending single-product emails or group-product emails. Single-product emails usually work well for other retail segments, as FMCG has a rapid product flow and it’s easy to tire the customer with too many single-product emails. On the other hand, the group-product emails are designed to help your customers with their regular shopping plan. Supplied with the data, the system optimises upcoming shopping sessions offering a checkout-ready shopping cart for a group of regularly purchased products. The customer can pay on the go and never runs out of the supplies.
For example, every 10–15 days, a regularly shopping customer gets a reminder email with a checkout-ready shopping cart.
Takeaways
By implementing a well structured loyalty program FMCG brands can exponentially increase their brand loyalty and increase their customer retention rates.
If you’re looking to implement a loyalty program that not only increases sales but one that’s proven to increase customer retention rates, check out Loyale!
