Author
Managing Director
6 min read|2018-02-23

Brands must now invest in 1:1 marketing to be relevant in 5 years’ time

How can FMCG Marketing sustainably reach digital shoppers? Instead of TV we watch Netflix, instead of radio we listen to Spotify and in the social media we compile our own newsfeed. We use ad-blockers and ignore advertising banners. Marc Pritchard, CMO of Procter&Gamble, recently called digital advertising “largely inefficient” and massively cut spendings - without notable losses for the consumer goods giant. Traditional channels continue to lose reach, digital marketing is in a crisis. It’s time for an innovation.


I f FMCG brands still want to still be relevant in 5 years, they have to personalize their marketing. The digital generation expects marketing that is tailored to them. One-to-One (short 1:1) has been the goal for marketers for years - thanks to new channels and technologies, this vision is now practically viable.

There is a gap between offline products and digital shoppers

When implementing 1:1 marketing, FMCGs have a problem: they have no customer data and opt-ins to be able to enter into a dialogue. A growing problem, because brands will be unable to place their messages.

With LoyJoy, we have launched a new cloud-based marketing platform. Our formula for success is simple: LoyJoy combines (1) Conversational Interfaces with (2) Incentives and (3) Artificial Intelligence.

(1) Conversational Interfaces are everywhere: Chat apps such as Facebook Messenger, WhatsApp, Telegram and others are daily companions and voice assistants such as Amazon Alexa move into our living rooms, cars and offices. This creates the ideal conditions for 1:1 communication.

(2) Incentives provide customers with a stimulus for interaction and consent to advertise. Customers are rewarded for their purchases and engagement through coins that can be exchanged for rewards or for participation in giveaways.

(3) Artificial Intelligence (AI) enables for the first time to automate dialogues (with so-called “chatbots”) and thus to be highly efficient. Machine Learning helps to increase campaign success. 1:1 has become a real option for consumer goods brands. But how does it work with LoyJoy in detail?

On-pack promotion as an offline trigger for digital interaction

To activate customers, giveaways or digital incentives are used. This could be credit for iTunes, GooglePlay, eBook downloads, travel or experience vouchers or even branded filters for Snapchat.

Fanta Halloween On Pack Promotion with digital reward

Watch the video: For Halloween 2017 Fanta in Europe offered a snapchat code on its Package for a free snap filter as a digital reward

On-pack promotions are no longer only able to influence the buying impulse at the POS, but can also serve as a starting point for long-term 1:1 interaction.

Online advertising can also be used to advertise promotions or giveaways. Facebook and Instagram ads can be linked directly to chatbots in Facebook Messenger. All other forms of advertising link to a landing page with chatbot.

Simplicity for consumers

Today, extensive forms cause poor conversion. This leads to brands missing the opportunity to build relationships.

Every.

Single.

Day.

Bad example: Lengthy signup form
Bad example: Lengthy signup form scare customers away

With LoyJoy, the entire loyalty interaction takes place in a chat. It becomes light and playful. Information can be collected in dialogue.

The customer can text or send photos. The LoyJoy chatbot answers immediately. And it motivates interaction. At the beginning there is always a sense of achievement for the consumer. This increases the chances for long-term commitment and the crucial opt-in.

Chat opens a new 1:1 channel for Brands. Customers can be targeted by push message or email. Even without opt-in, it is possible to place relevant messages in the ongoing dialogue.

Smart backend with privacy by design

LoyJoy is designed in compliance with data protection regulations, the GDPR is an integral part of the core concept.

Of course, an opt-in can be withdrawn at any time by a simple “stop” command. Consumers should not be offered advertising messages, but value-added messages. New products, opinion polls, new promotions, customers attract customers - marketers can design the dialogue to suit the brand in a variety of ways.

To control the new 1:1 dialogue efficiently, LoyJoy offers a comprehensive backend system. In this, marketers control campaigns, measure performance, manage their own CRM database and customize the user experience according to their wishes. Thanks to its modular structure and interfaces (APIs), LoyJoy can be seamlessly integrated into existing system landscapes.

With or without proof of purchase

Proof of purchase is a challenge in the loyalty area for FMCG. At LoyJoy one can either send in a code from the packaging (On Pack Code), the receipt or a photo of the product. It couldn’t be easier. Here too, artificial intelligence, in the form of an artificial neural network specially trained for image recognition, provides a high degree of automation.

For brands, channels such as Facebook Messenger (which reaches 1.3 billion people) are too exciting to ignore. LoyJoy is simple and motivating for consumers, but for marketers it is a new and powerful tool in their marketing mix.

With LoyJoy, brands remain independent in their digital marketing efforts.

What do you think of LoyJoy? Do you have any questions? I look forward to your comments, questions and opinions.

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