In a recent article posted on progressivegrocer.com, Gary Hawkins, founder and CEO of Center for Advancing Retail & Technology (CART) shared some interesting perspective on current marketing trends used in supermarkets and other sectors of the consumer packaged goods (CPG) industry.
Comparing traditional marketing practices and costs with the newer “customer of one” approach, Hawkins paints an intriguing picture of how supermarkets, manufacturers (brands), and consumers might simultaneously enjoy the benefits of leveraging today’s technology.
“Let’s imagine you are a brand manufacturer and you have just one customer to focus on; let’s call him Joe,” he writes.
“You would want to learn all you could about Joe, but most importantly, you would want to know how often he purchases from your product category and your share of his category business. You would also want to understand Joe’s brand loyalty and discount propensity.
“Armed with this knowledge, you would then want to promote to Joe just before he’s due to make his next category purchase, aligning brand promotion activity to Joe’s purchasing cycle, ideally communicating the right offer (knowing Joe’s discount propensity) at the right time (easy to do in today’s digital world), and in the right place (including in the store as he’s approaching the category).
Over time, you would want to grow Joe’s value to your brand by increasing his purchase frequency, up-selling and cross-selling into larger package sizes, multiple units, and related products.”
The “customer of one” method enables the brand as well as the supermarket to enjoy more regular patronage and sales revenue while spending less of their marketing budget, while the customer enjoys the benefit of shopping with less effort and at lower cost.
And, as noted in various other posts, it seems the trend toward customer-driven decision-making continues…