In 2011, PepsiCo revolutionized their marketing strategy with the 'Do Us A Flavor' campaign for their Lay’s brand. The campaign, inviting consumers to suggest new chip flavors, engaged customers on a new level, leading to a 12% increase in sales and the acquisition of many new, loyal customers [1]. The success of the campaign demonstrates the potential of strategic marketing in attracting and retaining customers in the CPG industry.
As a Marketer, driving customer acquisition and retention is likely one of your top priorities. Here are some key strategies to help you achieve these objectives:
1. Understand Your Target Market:
Knowing your customer is the first step in both attracting and retaining them. A study by PWC shows that 73% of all people point to customer experience as an important factor in their purchasing decisions [2]. By understanding your customer’s needs and preferences, you can tailor your product offerings and marketing messages to match their expectations.
2. Deliver Superior Customer Experience:
Great customer experience can set your brand apart from the competition. According to a Walker study, by the end of 2020, customer experience has overtaken price and product as the key brand differentiator [3]. Providing a seamless and enjoyable experience at every customer touchpoint is key to both winning new customers and retaining existing ones.
3. Leverage Content Marketing:
Content marketing can be an effective tool to attract and retain customers. According to the Content Marketing Institute, content marketing costs 62% less than traditional marketing and generates about 3 times as many leads [4]. By delivering valuable, relevant content, you can attract potential customers and keep existing customers engaged with your brand.
4. Implement a Customer Loyalty Program:
Customer loyalty programs can be a powerful tool for customer retention. A study by Bond Brand Loyalty found that 70% of consumers are more likely to recommend a brand with a good loyalty program [5]. A well-structured loyalty program can incentivize repeat purchases and foster long-term loyalty.
5. Use Data and Analytics:
Leveraging data can enable more targeted and effective marketing. A McKinsey study found that organizations using customer analytics extensively are more likely to outperform their competitors in key performance metrics, such as sales, profit, and customer satisfaction [6]. Data-driven insights can help you better understand your customers, personalize your marketing efforts, and evaluate the effectiveness of different strategies.
PepsiCo’s 'Do Us A Flavor' campaign serves as a brilliant example of how a well-executed marketing strategy can attract and retain customers. By understanding your target market, delivering superior customer experience, leveraging content marketing, implementing a customer loyalty program, and using data and analytics, you can effectively boost your customer acquisition and retention efforts.
[1]. Ives, N. (2012). "Frito-Lay Gains Sales, Insights From Facebook App." Advertising Age. https://adage.com/article/news/frito-lay-gains-sales-insights-facebook-app/235698
[2]. PWC. (2018). "Experience is Everything: Here’s How To Get It Right." https://www.pwc.com/us/en/advisory-services/publications/consumer-intelligence-series/pwc-consumer-intelligence-series-customer-experience.pdf
[3]. Walker. (2020). "Customers 2020: A Progress Report." https://www.walkerinfo.com/knowledge-center/featured-research-reports/customers2020-1
[4]. Content Marketing Institute. (2020). "B2B Content Marketing: 2020 Benchmarks, Budgets, and Trends." https://contentmarketinginstitute.com/wp-content/uploads/2019/10/2020_B2B_Research_Final.pdf
[5]. Bond Brand Loyalty. (2019). "The Loyalty Report 2019." https://www.bondbrandloyalty.com/loyalty-report/
[6]. McKinsey. (2019). "Unlocking Success in Digital Transformations." https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/unlocking-success-in-digital-transformations.