The Great Loyalty Debate

How do we drive Loyalty in a price sensitive FMCG market?

Proudly sponsored by Hive and the IPM and featuring keynote speeches from Clive Humby (Co-Founder of Dunnhumby) and Steve Mader (Digital Retail Insights Director for Kantar Retail), The Great Loyalty Debate focused on the ever-changing concept of loyalty and how brands can drive consumer engagement and maintain and grow profits.

Over 100 guests from top FMCG brands and agencies attended the event at the prestigious BAFTA building in Piccadilly on 3rd October 2014. The speeches were delivered in the iconic Princess Anne Theatre providing a wonderful backdrop for the event.

TGLD 2014

The current climate

Clive Humby painted a picture of the current FMCG market in crisis; arguing that consumers have been conditioned to buy solely on price due to the focus of retailers on price as the key differentiator, with little or no added-value being offered.

Backing up this assertion is an interesting statistic offered by Clive that currently "over 60% of brands' volumes are sold on discount".

"Over 60% of brands' volumes are sold on discount" - Clive Humby

While highlighting the challenges for brands in the current economic climate and market conditions, the event was certainly not just doom and gloom for the industry, as the Keynote speakers, panel discussion and FMCG brands' case studies all offered solutions to combat the current trends.

So, what are the solutions?

Relevance

Key takeaways from both Clive Humby and Steve Mader focussed on the increasing need of promotions to be targeted and relevant for consumers, offering them "what they want and not what you want to offer them". The ready availability of data from a range of sources means brands can engage in accurate and effective segmentation to target the right consumers with the right offers at the right time.

"[Offer] different mechanics for different audiences" - Jonathan Jackson

Reducing Resistance

Steve Mader discussed the increasing prevalence of multi-channel retailing and strongly believes that brands need to move from "shopper marketing to decision marketing" to help "drive incremental loyalty in a digital world". Brands developing joined-up multi-channel tools will have the best opportunity to increase perceived value to consumers and help in the fight against price promotion.

Where do we start?

Offering some real world examples of this in action, Sam Dolan, Senior Brand Manager at Arla Foods talked about the Anchor Rewards Club, again extolling the virtues of relevance and consistency in driving consumer loyalty through their online rewards platform.

Andy Wingate, Senior Category Manager at Heineken UK talked about Heineken Star Rewards. Heineken Star Rewards is a licensed trade scheme aimed at driving penetration and frequency. In the early stages of its life it is showing signs of success with good levels of trade engagement and, being based on actual purchase data, is giving Heineken some great insights into developing further relevance and driving the correct offers to the correct outlets, without always having to rely on purely price-based incentives.

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Find out more about The Great Loyalty Debate here.