How can mobile bridge the gap between FMCG brands and customers?
A long-standing challenge for FMCG brands is getting direct contact with their customers. With 57% of customers typically spending more on brands that they are loyal to, the fight for visibility, loyalty and engagement on ever-crowded shelves is crucial.
So what challenges do brands face in securing customer loyalty beyond the purchase cycle, and how could mobile help address these?
Making customers care
One of the biggest challenges for organisations is making customers care about what they have to say. And it has to be something pretty compelling for any of us to want to listen to our cereal, washing powder or toilet cleaner brands.
Whilst supermarkets can build a direct relationship with customers through tactics such as competitive pricing, exclusive offers and loyalty programmes, FMCG brands are not always able to do the same. For many customers, they can’t see how engaging further with FMCG brands would be useful or relevant.
Supermarkets hold the customer data
Customer behaviours like purchasing frequency and preferences are essential when it comes to personalising customer experiences and building stronger relationships. This data creates not just insight for supermarkets, but also establishes a line of communication with customers, whether that's email, web or app.
For FMCG brands, this data isn't readily available, with supermarkets and retailers being the primary holders of all their customer data, creating a disconnect.
Price points and volume do not warrant D2C retail
Skipping the middle-man and selling “direct to customer” is of course an option, but it's easier said than done. Low price points and volume do not always allow for this to drive real revenue, let alone creating the infrastructure for delivery. Brands have explored subscription models to tackle this, with some more successful than others - detergent brand Smol has made some progress. But there's no guaranteed success.
So how can mobile help?
Branded mobile apps
More and more FMCG brands are investing in branded mobile apps as a way to stay more present in customers’ routines. Often, these mobile experiences leverage gamification elements such as scratch cards or challenges as a fun way to interact with customers and drive app engagement. The mobile apps can also give customers the chance to earn rewards, and receive personalised offers based on purchase history.
This is something brands such as PepsiCo are doing with their “Pepsi Pass” - in this case, they implemented an intelligent receipt scanning system. Customers in the Benelux region could upload their purchase receipts via a mobile platform, allowing PepsiCo to validate purchases and offer rewards through various campaigns. This approach not only increased customer engagement but also provided valuable insights into purchasing behaviours.
Social commerce and shoppable ads
Platforms such as Instagram, TikTok and Facebook are also now allowing customers to make more direct purchases via their shopping functions. As TikTok shop burst onto the scene in 2023, all sorts of consumer goods became readily available D2C from makeup to sportswear, electronics to food and beverage.
Influencer collaborations and interactive, live shopping experiences are huge drivers of sales in this space - and it shows no sign of slowing down with platforms such as TikTok shop generating $32.6 billion in Gross Merchandise Value in 2024.
QR codes and Augmented Reality (AR)
Mobile can also unlock engagement opportunities with customers through QR codes on packaging. These codes can lead to exclusive content, special offers or promotions to drive future purchases. QR codes can also prompt users to discover branded AR experiences - this is something FMCG brands such as Heinz and Coca-Cola have previously embraced in a bid to get closer to customers.
L'Oréal recently enhanced customer engagement by integrating AR into their mobile marketing strategy. They developed an AR-powered application that allowed users to virtually try on makeup products using their smartphones. This interactive experience enabled customers to experiment with different products in real-time, leading to increased engagement and more informed purchasing decisions.
IKEA has also leveraged mobile technology by introducing an AR application that allows customers to visualise how furniture would look in their homes. Users can select products from the app and use their smartphone cameras to see how these items would fit into their living spaces. This innovative approach enhances the shopping experience and reduces the risk of returns/unhappy customers.
Conversational commerce via chatbots and WhatsApp
Chatbots are not a new idea - but they are becoming increasingly more powerful and popular, especially when it comes to providing customer support. Conversational chatbots can now go above and beyond, offering personalised recommendations to your customers.
More recently, WhatsApp campaigns have emerged as another alternative platform for customers to place orders, access customer service and receive exclusive offers and promotions. This direct-to-consumer engagement is allowing brands to get closer to their customers, largely with the help of automation.
In Brazil, Unilever started a two-way conversation with customers via WhatsApp with advice and tips about how best to take care of clothes, hoping to raise awareness about their products. This campaign drove almost 300,000 messages and reached over 6000 customers - showing how a mobile approach can effectively get a FMCG brand closer to their customers.
Location-based marketing & geo-targeting
Last, but most certainly not least, is location-based marketing and geotargeting; the tools that can allow you to share push notifications to customers to alert them to nearby store discounts.
In the U.S., Coca-Cola used GPS and geofencing to detect when a user was near a convenience store or supermarket. If a customer entered a certain radius (e.g., 500 metres from a 7-Eleven), they would receive a special discount or promotion via the Coca-Cola mobile app or digital ad. The ad would include a limited-time offer, such as "Buy one, get one free on Coca-Cola at 7-Eleven, only for the next 2 hours!" - clicking the ad would direct the customer to the nearest participating store. This strategy helped Coca-Cola increase foot traffic, drive impulse purchases, and boost sales in specific locations.
Leveraging mobile with Apadmi
Whether you're keen to implement geotargeting, or looking to create a branded app - Apadmi's mobile experts can help you implement and leverage these tools to get closer to your customers.
We have worked with FMCG brands such as McCain and Carslberg, and are always looking to innovate further with large brands with big ambitions - reach out now to find out how we could work together.
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