Hive's loyalty top 5

In the battle against supermarket price discounting, loyalty is essential to a brand’s survival. Here, we reveal our five key principals of FMCG brand loyalty.

Relevance

Let’s get started with, in our opinion, the supreme loyalty principle... relevance. What is relevance? Relevance is what your consumer and shopper wants, rather than what you as a brand want to offer them. Relevance can present itself in many ways; as a relevant incentive – an engaging reward or prize; relevant content – well informed editorial content that appeals to its reader or relevant communication – delivered with a personalised touch, tailored for its reader.

To provide relevance, a brand should first know its consumers. Who are they? What appeals to them? What motivates them? What don’t they like?

Simple, eh? Not necessarily as simple as it sounds… but, here at Hive we’ve developed a convenient solution. We are proud ambassadors of the unique code.

Unique code

A unique code, printed on the packaging of an FMCG product is submitted by a consumer along with some basic demographical information. This unique code relates a product’s purchase to a consumer’s name, gender, age and geographical location. As a database of information is built upon, consumers are categorised into segments and the ability to provide relevance grows.

Defining Loyalty

loyalty | noun

  • a strong feeling or support or allegiance.

With this definition as a goal, a brand can begin to develop a sense of loyalty between itself and its consumers. When an FMCG brand gets loyalty right, its consumers form an allegiance with the brand; they purchase a higher volume, more frequently and also become more responsive to marketing, share their feelings about the brand and communicate with the brand more enthusiastically.

Measuring loyalty

This is where we get a bit scientific. Don’t worry, it’s not too complicated. Loyalty to an FMCG brand is measured in two ways; Frequency of Purchase (known as ‘FOP’ to our friends in the FMCG industry) - how often a product is purchased, and Average Weight of Purchase (AWP) - the volume of a product purchased in each transaction.

Put simply a happy, loyal consumer’s FOP and AWP improve.

Where does a brand acquire FOP and AWP data to measure? Sales data alone can only provide a vague picture of loyalty. However as loyalty from and to a brand grows via the use of a unique code on pack, code entry provides actual transactional shoppers’ data – linking weight and frequency of purchase to an individual shopper. Collectively, this data can be collated and loyalty (FOP and AWP) is more accurately measured and can be developed further.

Mutual loyalty

It’s unfortunate that consumers are often led to feel as though loyalty is a one-way street; that their dedication to a brand isn’t adequately recognised. This is particularly demonstrated in the fields of finance and telecoms where introductory offers favour new consumers while disregarding existing loyalty. Loyal consumers feel neglected and disengaged.

True loyalty of course relies on a mutual fidelity between a brand and its consumer and this poses a fantastic opportunity for FMCG brands. With the ability to track a consumer’s shopper behaviour via unique codes, a brand can offer a relevant incentive for loyalty; for instance, a reward or prize draw entry when a particular frequency of purchase is achieved. A relevant, tangible incentive demonstrates a brand’s gratitude to its customer and further loyalty is returned.

Communication

We know that a relevant incentive will appeal, but how does a brand reach out to their potentially loyal consumer? In our experience, on-going, relevant communication is fundamental.

Firstly, a nice, bright, eye-catching message on-pack will get the ball rolling. The objective with a successful on-pack message is to prompt the initial engagement, however, the key to successful continued loyalty with a consumer is through a tailored CRM plan. At Hive, using analytics software to evaluate hundreds of email campaigns, we’ve demonstrated that dynamic email content far outperforms its static, inflexible sister and the trick to relevant dynamic email content is to utilise the consumer’s data.

A successful dynamic email will establish a relationship with the reader and stimulate further participation with the brand.


To find out how Hive can help your brand with shoppers’ data and loyalty, please contact info@hiveonline.co.uk or call 01509 882910 and speak to Rachel Swann.