Marketing on the Internet - LEAD Marketing Conference

Report
Are Your CPG Brands Maximizing
the 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 objectives
Do consumers
Where are
What website
visiting a brand’s
website buy more than
non-visitors?
brand buyers
spending their time
online?
features drive instore sales?
6
Integrating data sources
Single-source,
Website Visiting
& Search
privacy protected
Loyalty Card
data linking online
activities and
Video
in-store buying
behavior
at the HH level.
Online
Transactions
Advertising
Exposure
1 Million
US Internet Users
UPC Scan Data
60 Million
Households
7
Accenture Web Evaluator (AWE)
52 metrics scored with benchmarking for 350+ leading global sites
Navigation
 Link navigation, call-to-action
 Simple menus, fast load times
 User driven intuitive navigation
 Site maps
 Multiple integrated routes
Information
 Daily refreshed content
 Product comparison feature
 Ratings, reviews, product benefits
 Product selection features
 Separate product & corporate info
Service
 Instructions, manuals, recipes
 Effective self help, demos, FAQs
 Service via email, chat, phone
 Allow feedback via reviews,
surveys, forums
Branding
 Clear “welcome to brand” content
 Compelling brand proposition
 Consistent message onsite
 Clarity of message
Globalization
 Easy switch to other countries
 Local language content &
currency, customer service
 Consistent look & feel across
languages & countries
Commerce
 Easy, secure purchase
 Clear pricing & promotion info
 Accessories & related products
 Omni-channel on+offline - return
 Store locator
Engagement
 Surveys, demos, live chat, tools,
tutorials to interactively engage
 Downloads - apps, audio, video,
buying or ‘how-to’ guides, games
 Contest, sweepstake, promotions
Relationship Building
 Loyalty program, CRM
 Personalization & customization
 Login registration provides custom
content, news, games, product
recommendations, saved basket
Social
 Popular social features
 Active community posts & UGC
 Brand participation with lively
discussions, deep knowledge
 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)
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10
Findings
10
Most CPG brand websites attract relatively few visitors
Websites of 25 Largest CPG Brands
(Defined By Buyer Penetration)
64%
24%
Under 100
100-199
4%
8%
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 nonvisitors …
Brand Spend
137
Average
Low
High
For 20% of brands, web site visitors
bought LESS THAN non-visitors.
What does that say about the quality
of the online experience?
83
205
but one brand achieves a 105%
incremental spend from visitors
vs. non-visitors
12
Website visitors pay less per unit than non-visitors
Brand Price/Unit
92
Average
Low
High
On average, website visitors
pay 8% less per unit than
non-visitors … couponing
strategy?
71
102
but some marketers earn 2%
higher unit price from visitors
using brand value messaging
13
Engagement does not translate to exclusivity
$6.86
$4.83
Visitors
Website visitors spend
53% more in the category
than non-visitors …
Non-Visitors
6.4
4.5
Visitors
and purchase 58% more
units in the category
Non-Visitors
14
Illustrative case for CPG digital marketing
BRAND X
Baseline
Annual Website Visitors
5,979,041
Incremental sales per
HH/Year
$8.64
Incremental sales per Year
$51,658,914
Est. Contribution Margin
30%
Incremental Margin per Year
$15,497,674
Internet ROI
Study
results
Value of one
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
per Month
As time on site increases, brand purchase in store increases
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
Mission
Presence of social cause on the brand site increases likelihood of
in store brand purchase
Content Scroll
More content on the brand site increases brand purchase in store
Business 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 marketing
What 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!
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5 Key Takeaways
1. CPGs have significant potential to build engagement and preference
2. Most miss this opportunity because too few consumers visit their site
3. A few CPGs have online experiences that generate incremental sales
4. Requires fresh content and a clear call to action
5. 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
Did not respond to
any of Brand X's
messaging
2%
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
Brand X
Friend
ofFriend
Fan of Fan
Non Fan or Non Friends
$8.52
$6.80
$5.23
Brand Spend/HH
Category Spend/HH
26
27
Who is visiting your brand site and who are your
Facebook fans?
 Compare the demographics of your website visitors and Facebook Fans to total
Internet composition
Gender
Total Internet
52%
60%
BrandX.com Visitors
Age
Brand X Fans
19%
< 18
65%
12%
Total Internet
8%
48%
40%
35%
18-24
BrandX.com Visitors
11%
14%
Brand X Fans
20%
15%
Females
25-34
Males
25%
31%
Ethnicity
16%
16%
18%
35-44
Total Internet
BrandX.com Visitors
Brand X Fans
16%
13%
45-54
12%
16%
22%
9%
10%
10%
11%
23%
20%
55+
Hispanic
African American
14%
27
Thank You!
Accenture
Ryan Krenn
(414) 698-8523
[email protected]
comScore
Judy Bahary
(312) 775-8836
[email protected]
dunnhumbyUSA
John LaRocca
(513) 632-0613
[email protected]
28
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Appendix
29
Web site features that drive traffic, engagement, and sales
Buyer Index
Importance
Time month
69%
As time on site increases, brand purchase in
store increases
Philanthropic
Mission
10%
Presence of social cause on the brand site
increases likelihood of in store brand purchase
Content Scroll
7%
More content on the brand site increases brand
purchase in store
86%
30
Web site features that drive traffic, engagement, and sales
Time Per Month
Importance
Fresh Content
74%
More content refresh increases time spent on
brand site (seasonal / monthly)
Promotion
8%
Presence of brand value messaging (reasons to
buy brand), increases time on site
Value Add Tools
4%
Product ratings, user generated content,
recipes, video, and tools increase time on site
Buy Online
4%
Presence of a click to buy features increases
time spent on site
90%
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