It’s difficult to be an FMCG marketer because it isn’t always possible to measure the marketing effort effect in sales and profit.
For example, one of Mindbox’s clients, an FMCG company, has ordered a marketing research. It had to estimate how personalized communications influence brand loyalty. It turns out that regular mailings increase the index along the sales funnel as follows: by 28% in Brand Satisfaction and by 10% in product’s Regular Usage.
Mindbox’s internal research for another FMCG company has shown average order value (AOV) growth by 31% and marginality growth by 10% for loyalty program members and the recipients of brand’s regular mailings. We have assumed the research results are also valid for other FMCG companies: in order to build customer loyalty, you need to constantly remind the customer of yourself. Taking this into consideration, we have developed Libero communications strategy.
Libero is a baby products brand: diapers, wet wipes, creams and other things that make parents’ lives easier. All of them are high demand goods.
The task at hand
In April 2017, Libero team launched the libero.promo landing page. Libero wanted to attract potential diaper buyers to the landing page to tell them about diaper advantages and motivate sales via promo actions on the website and through regular multichannel communications. This way we accumulate a customer base, which tends to be quite important because diaper distribution is a highly competitive sphere.
- customer data collection and storage of customer data
- development of omnichannel communications strategy
- convenient communications to keep in touch with customers and inform them about promo actions
- the concept of «beneficial» communication
- ability to improve via A/B tests
- transparent reporting system
The Mindbox solution
In order to maintain loyalty, Mindbox marketing analysts alongside the Libero team chose two directions of communications strategy:
- Keeping in touch with customers
- Communication with customers consists of informational, training and entertainment content.
- Switching parents to purchasing a new type of diaper, suitable for child’s age
- When the child’s age reaches the point when it’s time to switch to the next size diaper, Mindbox system sends an automated email or a web push notification with a link to a landing page where you can order a promo code for a new sub-brand of diapers.
Triggered and mass mailings, web push notifications, transactional SMS.
To measure the email effectiveness, we monitor how many of the entire customer DB got the email, opened it and clicked on a link inside it.
The strategy purpose is regular communication with customers without annoyance. This encourages to communicate with the entire customer DB, but not too often, so that the interest does not fade. We define the interest by the Open and Click Rates.
The DB coverage and subscribers’ interest increased with improvements via A/B tests and the launch of automated communication chains at the end of January.
As of July 2018:
- 99% of customers get emails every month;
- 32% of customers open emails;
- 10% of customers click the link within.
To assess the effectiveness of communications where we suggest parents to move their babies to the next diaper size, we measure the share of customers who received these communications and then ordered a promo code. Thus we find out how many customers we managed to switch to the next type of diaper.
Alongside the Libero team, we are constantly improving communications chain for such reminders and special suggestions for parents.
For example, in July, content personalization, simplified communication and increasing number of stores where you could get diapers with discount via the promo code gave the following results:
- 8.4% of customers switched from the Libero NewBorn line to the Libero Comfort line, compared with 3.1% in February
- 6% of customers switched from the Libero Comfort line to the Libero UP&GO line, compared with 3% in February.
We addressed Mindbox in April-May 2017, wishing to accumulate and store data about the visitors of our new recruitment project libero.promo. It was necessary to adjust the email dispatch and develop a constant communication strategy for subscribers. Mindbox was expected to provide a high level of service, a convenient report format, suggestions on how to optimize the data presentation, expertise, a high level of accounting and interest in our product.
We got all of this and, as a result of our collaboration, we have loyal subscribers and high email response rates.
We are pleased to have chosen Mindbox. We think that the effectiveness of our project is at a high level thanks to teamwork, high-quality analytics and the use of new technological solutions.
Mindbox system receives client data from the libero.promo landing page. To personalize communication we collect data about the stage of the pregnancy or the baby’s age. We need this data so that the Mindbox system can determine a mother’s position in the communication chain.
We conditionally divide parents into three groups according to the type of diapers used for their babies:
- Libero NewBorn (diapers for newborns);
- Libero Comfort (diapers for 3-4-month-old babies);
- Libero UP&GO (diapers for babies older than four months)
All Libero communications based on the Mindbox strategy consider the baby’s age. It determines the type of diapers that we offer and the content of emails and web push notifications.
We use three general principles in our strategy:
- different type of content
- improvements through A/B tests.
We offer the subscriber to choose a convenient communication channel
For communication with subscribers we use 3 channels:
- Mass and automated emails
- Web push notifications
- Transactional SMS
Customers can choose a convenient communication channel: email, web push notifications or both. For these channels, we measure the result: we monitor how many parents reacted to the call to follow the link and get a promo code for a new type of diaper. SMS channel is used only for sending promo codes.
We also combine channels. For example: we’ve created a cascade web push notification and email communication chain where we inform parents that it is time to switch their babies to a new type of diaper. The chain includes several emails and a web push notification, which remind parents to pay attention to a new type of diaper for a certain period.
The July results of the communications chain where we inform parents that it is time to switch their babies to a new type of diaper.
|Web push notifications||Email – reminder||Total|
|Switch from «Newborn» to «Comfort» conversion||8,1%||0,13%||0,15%||8,4%|
|Switch from «Comfort » to «Up&Go» conversion||5,2%||0,2%||0,7%||6%|
If customers are subscribed to only one of the channels, other chains work on them. This system allows us to communicate with the largest possible number of people from the database.
We send personalized content without annoying readers
All communications take into account the baby’s age. That is, each parent receives special messages regarding his or her child. Pregnant women receive messages about preparing for childbirth, parents with newborn babies receive useful tips on how to teach their your baby to walk or talk.
In total, we use three areas of content: product, suggestions to move to the next size diapers and entertainment.
Product content is mostly mass emails about discounts and Libero products promotions in partner stores. We duplicate information about promotions via web push notifications.
Libero uses two channels of communication to tell customers about the new promo actions: email and web push notification
Messages on moving up to the next diaper size and entertaining content are automated. In total, the project is configured to send 27 automated email and web push notifications, corresponding to the child’s age.
In the content with the proposal to switch to the next size diaper, Libero tells when and why it is important to switch in time
To maintain brand & mailing interest, we alternate the content.
Improving communication with A/B tests
Since we already have regular communications with customers and a streamlined trigger chain, we are now engaged in improving and personalizing content.
E.g.: we check which topic is more interesting.
Or we check which version of the text is more interesting in the email. E.g.: we compared which text is the best to make the customer click on the link: a description of the product benefits or the useful tips for communicating with the baby. Option with a description of the product benefits won.
Testing is important because it helps to choose the best solution and make the content more personalized. Every small improvement affects performance general indicators of the strategy.
Personal communications increase customer loyalty and influence sales
To increase loyalty, Libero marketers have chosen direct communication with customers and are constantly experimenting on how to improve it.
Using Mindbox Libero:
- accumulate all customer data in one place
- communicate with customers via email, web push notifications and SMS
- use and test different and useful content
- have reports on all communications.
By July 2018 thanks to personalized communications:
- increased the share of customers who receive monthly emails to 99%;
- achieved a good email Open Rate at the level of 32%;
- have 10% email Click-through rate of the entire customer DB.
Another important element of Libero communications is transfer emails and web push notifications. They help parents find out why it is important to switch their babies to a new type of diaper and offer a promo code for the purchase of new diapers.
From February to July 2018, the number of customers who switched from Libero NewBorn to the Libero Comfort line increased from 3.0% to 8.4%, and the number of customers who switched from the Libero Comfort line to the UP & GO line increased from 3.1% to 6%.