Frito-Lay scores by personalizing consumer experiences

Discussion
Source: Frito-Lay
Jun 26, 2018
Dale Buss

Through a special arrangement, presented here for discussion is a summary of a current article from the monthly e-zine, CPGmatters.

Speaking at the IRI Growth Forum, Jennifer Saenz, chief marketing officer for Frito-Lay North America, said the “world around us continues to change at an incredible pace” and expectations for interaction with brands are set by the extreme individualization allowed by smartphones and other digital phenomena.

The message for brands is that consumers now want and expect:

Personalized experiences: “This doesn’t necessarily mean one-on-one engagement,” but “also listening to [consumers] and offering solutions that are meaningful to them. You can do that on a mass scale.”

Frictionless contact: As an example, Ms. Saenz pointed to Starwood Hotels’ mobile app that lets guests check-in and to use a code to open the door. “There’s no waiting in line; you bypass all check-ins,” she explained.

Contextual relevance: Using intention-based targeting versus demographic-based approaches. Ms. Saenz noted how a 28-year-old man who’s just welcomed a baby into the household “is far more likely to pay attention to an advertisement with a baby than a 28-year-old man who’s just figuring out the dating scene.”

Then, Ms. Saenz said, brands have to deliver these types of experiences in ways that include these characteristics:

Shareworthiness: Experiences should be worth sharing on social media, such as Instagram and Facebook. “It must be beautiful and it must live up to consumer expectations,” she said.

Simplicity: Today’s consumers have little tolerance for “slow and complicated experiences.” Consumers are increasingly valuing time over saving money.

Magic: Not only do individualized experiences need to remove friction and so on, they must do so “in a way that leaves people simply in awe,” Ms. Saenz said. “That’s what makes it hard to stay one step ahead.”

To do this, Frito-Lay searches for “overt” clues to what consumers are doing, such as patterns in the websites they visit and purchase from. It’s also important “to understand latent characteristics, silent signals” of consumer wants and needs, she said, “that give us a peek as to where they might be going next.” Historically, Ms. Saenz conceded, “that’s been challenging.” But “the beauty of today is that data and technology are unlocking a better understanding of those latent characteristics. It’s no longer a guessing game. And you have to listen.”

DISCUSSION QUESTIONS: What type of interactions do consumers now want and expect from brands that are different than the past? Which of the three types of characteristics around brand interactions mentioned in the article — shareworthiness, simplicity, magic — do you think is most important to success?

Please practice The RetailWire Golden Rule when submitting your comments.
Braintrust
"Steeped in a history of mass marketing, retail is only beginning to scratch the surface of what is possible with by-individual specialization."
"I think the brand interaction people want is heavily dependent on the type of product you are selling."
"To me it seems to come down to a content marketing strategy based on rich consumer insights."

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8 Comments on "Frito-Lay scores by personalizing consumer experiences"


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Lyle Bunn (Ph.D. Hon)
Guest

The magic in the moment when technology and data mining and analytics are all fully behind the curtain provides the simplicity and elegance of consumer experience that cannot help but be appreciated. So much of customer experience is quite rightly focused on content and messaging because these are relatively easy to deliver and they leverage an investment in content presentation infrastructure. Engaging and share-worthy message individualization and more refined segmentation are the lower-hanging fruit of today’s marketing.

Dr. Stephen Needel
BrainTrust

I think the brand interaction people want is heavily dependent on the type of product you are selling. And I’m pretty sure for most CPG products, brand experience is way overrated. I don’t want an experience with my toilet paper or my breakfast cereal — I want the product. The only experience my wife wants with her Activia yogurt is the one they promise. This may not be personalization they are talking about but relevance — two different concepts.

Max Goldberg
Guest

Consumers want it their way, which makes life interesting for marketers and contributes to the high turnover and short stints of many CMOs. It’s hard to constantly have to deliver a share-worthy, simple, frictionless, magical experience — and yet that’s what consumers, particularly Millennials, have come to expect. Of those desired brand attributes, I think simplistic is the most important. As the world gets more complicated, consumers yearn for simplicity. It’s not worth the hassle to stick with a brand that doesn’t make life easier.

Chris Petersen, PhD.
BrainTrust

Steeped in a history of mass marketing to sell products, retail is only beginning to scratch the surface of what is possible with by-individual specialization. However, I agree with Stephen Needel, there is not a universal answer – I don’t want or value a relationship with my toilet paper. The level and depth of personalization depends upon the product category and customer engagement.

There is one area of personalization that customers are demanding at ever increasing levels. It is the personalized experience and choices in shopping and product delivery. Customers expect to shop anytime and everywhere, take delivery anywhere and reschedule the delivery based on their schedule. Whether it’s toilet paper, groceries or the most expensive gadget, customers not only expect personalized service, they are demanding to be an integral part of it.

Sterling Hawkins
BrainTrust

Consumers want value. That can be in the form of price, personalization or experience and isn’t limited to what has already been done. The technology out there today opens up opportunities for brands to change how they traditionally have gone to market. The rules of the game have changed and brands can newly imagine new how simplicity, shareworthiness and magic can be ultimately delivered.

Byron Kerr
BrainTrust

Today, consumers expect frictionless shopping that meets their precise needs without the fluff and baggage. Brands that can laser-target their marketing efforts to micro-segments within broader segments win, consistently.

Brands that blend laser-targeted messaging with experiences built on ease and simplicity continue to thrive in this transformative market.

Gib Bassett
BrainTrust

For consumer packaged goods, this is a complicated question. For certain categories like paper goods, it’s possible that the most appealing aspect of the product is how it’s made and whether it’s environmentally friendly. Making sure your consumer understands this, and how your company more broadly supports that idea, can fuel a lot of different interactions — both digital and mass. For other categories, like sports drinks, it may be all about ensuing hydration and superior performance. To me it seems to come down to a content marketing strategy based on rich consumer insights. Those insights ideally should reflect the consumer’s lifestage to provide the most personal and contextually relevant interactions. Otherwise, it’s all about price and coupons.

Ricardo Belmar
BrainTrust

Let’s face it — the bar is now set pretty high by most consumers! Brands need to hit all three to successfully engage with customers — they want it simple, demonstrating lots of value and of course, the magic is what makes it memorable and therefore shareable! For most brand marketers, focusing on bringing the magic will allow the others two to follow. Although it’s easy to forget about simplicity, when we look at successful campaigns, the simplest ones tend to be the ones that automatically deliver the magic. Shareability just follows from that!

wpDiscuz
Braintrust
"Steeped in a history of mass marketing, retail is only beginning to scratch the surface of what is possible with by-individual specialization."
"I think the brand interaction people want is heavily dependent on the type of product you are selling."
"To me it seems to come down to a content marketing strategy based on rich consumer insights."

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