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?

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CPG manufacturers have invested millions of dollars in their brand websites and social media presence, yet they struggle to show how their digital marketing investments are influencing brand purchases ...

CPG manufacturers have invested millions of dollars in their brand websites and social media presence, yet they struggle to show how their digital marketing investments are influencing brand purchases in stores.
Accenture, comScore and dunnhumbyUSA presented their groundbreaking study on the link between consumers’ usage of brand websites and their brand purchases in retail stores at the 2012 LEAD Marketing Conference in Chicago.

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Are Your CPG Brands Maximizing the Return on Your Digital Investment? Are Your CPG Brands Maximizing the Return on Your Digital Investment? Presentation Transcript

  • Are Your CPG Brands Maximizingthe Return on Your Digital Investment? October 2, 2012
  • Who we are Judy Bahary Sr. Vice President, Agency & CPG Market Solutions comScore Ryan Krenn Senior Manager, CPG Digital Marketing Solutions Accenture Interactive John LaRocca Vice President, Media Solutions dunnhumbyUSA 2
  • About our companies 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. 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.. 3
  • Agenda   Background: The Need for this Study   Research Methodology   Findings   Key Takeaways   Future Research 4
  • 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 5
  • Research objectivesDo consumers Where are What website visiting a brand’s brand buyers features drive in-website buy more than spending their time store sales? non-visitors? online? 6
  • Integrating data sources Single-source, Website Visiting & Search Loyalty Cardprivacy protecteddata linking online Video activities and in-store buying Online behavior Transactions at the HH level. Advertising UPC Scan Data Exposure 1 Million 60 Million US Internet Users Households 7
  • Accenture Web Evaluator (AWE)52 metrics scored with benchmarking for 350+ leading global sitesNavigation Branding Engagement Link navigation, call-to-action  Clear “welcome to brand” content  Surveys, demos, live chat, tools, Simple menus, fast load times  Compelling brand proposition tutorials to interactively engage User driven intuitive navigation  Consistent message onsite  Downloads - apps, audio, video, Site maps  Clarity of message buying or ‘how-to’ guides, games  Contest, sweepstake, promotions Multiple integrated routesInformation Globalization Relationship Building Daily refreshed content  Easy switch to other countries  Loyalty program, CRM Product comparison feature  Local language content &  Personalization & customization Ratings, reviews, product benefits currency, customer service  Login registration provides custom Product selection features  Consistent look & feel across content, news, games, product Separate product & corporate info languages & countries recommendations, saved basketService Commerce Social Instructions, manuals, recipes  Easy, secure purchase  Popular social features Effective self help, demos, FAQs  Clear pricing & promotion info  Active community posts & UGC Service via email, chat, phone  Accessories & related products  Brand participation with lively Allow feedback via reviews,  Omni-channel on+offline - return discussions, deep knowledge surveys, forums  Store locator  Promotional events Nike+ 10K run 8
  • 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) 9
  • 10Findings 10
  • Most CPG brand websites attract relatively few visitors Websites of 25 Largest CPG Brands (Defined By Buyer Penetration) 64% 24% 8% 4% Under 100 100-199 200-299 300+ No. of Monthly Unique Visitors (000) Source: comScore, 2011 11
  • Some CPG websites drive incremental in-store spending On average, website visitors spend 37% more than non- Brand Spend visitors …Average 137 For 20% of brands, web site visitors bought LESS THAN non-visitors. Low 83 What does that say about the quality of the online experience? High 205 but one brand achieves a 105% incremental spend from visitors vs. non-visitors 12
  • Engagement does not translate to exclusivity $6.86 Website visitors spend $4.83 53% more in the category than non-visitors … Visitors Non-Visitors 6.4 4.5 and purchase 58% more units in the category Visitors Non-Visitors 13
  • Website visitors pay less per unit than non-visitors On average, website visitors Brand Price/Unit pay 8% less per unit than non-visitors … couponingAverage 92 strategy? Low 71 High 102 but some marketers earn 2% higher unit price from visitors using brand value messaging 14
  • Illustrative case for CPG digital marketing BRAND X Baseline Annual Website Visitors 5,979,041 Incremental sales per HH/ Internet ROI Year $8.64 Study results Incremental sales per Year $51,658,914 Est. Contribution Margin 30% Value of one Incremental Margin per Year $15,497,674 Brand 15
  • Features of CPG brand sites 16
  • Web site features that drive traffic, engagement, and sales Which CPG web site features maximize off-line sales? BUYER INDEX Time on Site As time on site increases, brand purchase in store increases per Month 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 Presence of social cause on the brand site increases likelihood of Mission in store brand purchase Content Scroll More content on the brand site increases brand purchase in storeBusiness impact: Marketers need to generate a constant stream of fresh content in all channels to keep consumer attention and increase purchases. 17
  • Who is doing it right? Product Ratings & Reviews (Video) 18
  • Who is doing it right? eNewsletter Program Signup Printable Coupons 19
  • Who is doing it right? Gamification 20
  • Who is doing it right? Click-to-Buy 21
  • Illustrative case for CPG digital marketingWhat if Brand “doubled” traffic and engagement? BRAND X Baseline After Annual Website Visitors* 5,979,041 11,958,082 Incremental sales per Year $8.64 $8.64 Incremental sales per Year $51,658,914 $103,317,828 Contribution Margin 30% 30% Incremental Margin per Year $15,497,674 $30,995,349 margin +$15.5 million Incremental annual margin from digital brand experiences that   create consumer engagement   deliver rich experiences   generate awareness   engender an emotional connection to brand This is a BIG opportunity to drive engagement with the brand! 22
  • 5 Key Takeaways1.  CPGs have significant potential to build engagement and preference2.  Most miss this opportunity because too few consumers visit their site3.  A few CPGs have online experiences that generate incremental sales4.  Requires fresh content and a clear call to action5.  Integration of online and in-store data needed to measure the impact of digital for CPGs 23
  • Future Research: Brand websites vs. social networks Social Media Brand Websites Fans Friends of Fans 24
  • Are Facebook fans responsive to the messaging?   Evaluate Facebook activity including commenting or “liking” a post   Look at online behavior of exposed fans: do they visit your website? Facebook Activity BrandX.com Visitation 6% 10% Commented on or "Liked" a post by Brand X 2% Did not respond to any of Brand Xs messaging 90% Total Internet Brand X Fans 25
  • Are fans & friends of fans more valuable?   Look at offline spending of fans, friends of fans and non-fans   Compare fan spend to brand website spend Spend per Household for Brand X and the Category $19.96 $17.32 Brand X Fan $10.55 Friend X Friend of Fan Brand of Fan $8.52 Non Fan or Non Friends $6.80 $5.23 Brand Spend/HH Category Spend/HH 26
  • 27Who is visiting your brand site and who are yourFacebook fans?  Compare the demographics of your website visitors and Facebook Fans to total Internet composition Gender Age Total Internet BrandX.com Visitors Brand X Fans 19% < 18 12% Total Internet 60% 65% 8% 52% 48% BrandX.com Visitors 40% 35% 11% 18-24 14% Brand X Fans 20% 15% Females Males 25-34 25% 31% Ethnicity 16% 35-44 16% Total Internet BrandX.com Visitors Brand X Fans 18% 16% 45-54 13% 9% 16% 22% 12% 10% 10% 11% 23% 55+ 20% 14% Hispanic African American 27
  • Thank You!AccentureRyan Krenn(414) 698-8523ryan.t.krenn@accenture.comcomScoreJudy Bahary(312) 775-8836JBahary@comscore.comdunnhumbyUSAJohn LaRocca(513) 632-0613John.LaRocca@us.dunnhumby.com 28
  • 29Appendix 29
  • Web site features that drive traffic, engagement, and sales Buyer Index Importance As time on site increases, brand purchase in Time month 69% store increases Philanthropic Presence of social cause on the brand site 10% Mission increases likelihood of in store brand purchase More content on the brand site increases brand Content Scroll 7% purchase in store 86% 30
  • Web site features that drive traffic, engagement, and sales Time Per Month Importance More content refresh increases time spent on Fresh Content 74% brand site (seasonal / monthly) Presence of brand value messaging (reasons to Promotion 8% buy brand), increases time on site Product ratings, user generated content, Value Add Tools 4% recipes, video, and tools increase time on site Presence of a click to buy features increases Buy Online 4% time spent on site 90% 31