As consumer packaged goods (CPG) brands lose share to less-expensive store brands, marketers are focusing on methods to secure lifelong brand loyalty in a bid to acquire new customers and retain lifelong customers. The insights gleaned from their online relationship marketing efforts often guide product development, marketing communications and retail promotion strategies.
CPG marketers’ online relationship marketing tools include weekly e-mails, coupon offers, rewards programs and sweepstakes. Social media platforms help to build buzz for product launches, drive trial and test marketing messages.
“These efforts strengthen brand loyalty among existing customers, build affinity with consumers who frequently switch brands and entice defectors back into the fold,” according to the new eMarketer report, “CPG Marketers Deploy Online Loyalty Programs.”
For example, Epsilon found an e-mail communication from a CPG company could trigger a whole range of activities among opt-in e-mail recipients.
In addition to regular e-mail communication, CPG marketers need to develop tactical social media hooks and integrate them with relationship marketing programs. These hooks will help marketers get closer to consumers and can also offer insight into the motivations and behaviors of specific target segments.
CPG marketers pursuing this approach will need to change the way they think about relationship marketing and loyalty. It requires going beyond coupon-based incentives to building brand loyalty based on more intangible, emotional values. Cone found that users developed positive feelings toward brands they felt they could interact with on new media channels.
“Consumers need a reason to continue purchasing a brand apart from habit and family tradition,” according to the report. “CPG marketers that fail to highlight and promote the unique benefits, value and relevance of their products will risk a consumer exodus from their brands. In creating an emotional bond with customers, CPG marketers will help encourage a lifetime of brand loyalty.”
The full report, “CPG Marketers Deploy Online Loyalty Programs,” available to Total Access subscribers only, also answers these key questions:
- What are the opportunities for CPG marketers to shore up consumer loyalty through relationship marketing initiatives?
- How are CPG marketers building social media functions into their loyalty efforts?
- How can intelligence and insight derived from relationship marketing sharpen CPGs’ marketing strategies?
Total Access subscribers, log in and view the report now.
Check out today’s other article, “Facebook Keeps Its Cool Among College Students.”