Nestlé connects in-store and online media
Through a special arrangement, presented here for discussion is a summary of a current article from the bi-monthly e-zine, CPGmatters.
Nestlé partnered with Tesco to help launch the dunnhumby media platform that promises to bring continual, consistent and contextual communications with shoppers within and outside the store.
Nestlé worked with dunnhumby media in the U.K. to promote the launch of a new on-pack promotion to Tesco customers across owned and paid channels, including in-store, mobile, online and out-of-home. The insights-driven media plan reached 5.8 million customers and drove an 11 percent increase in sales.
At retail, stores with POS and JCDecaux’s digital screens generated a 33 percent sales increase versus a 15 percent increase in stores with POS screens only.
The dunnhumby media platform obtained information about Tesco shoppers’ behavior through their loyalty cards, then reached out to them about Nestlé products and promotions online, via smartphones and through integrated in-store electronic signage. The more that the shoppers acted within the program, the more rewards they received in the form of additional promotional offers.
Nestlé was able to deliver personalized messages that were the same across all touchpoints and further merge online and in-store experiences.
While the action here is occurring in Tesco’s U.K. home base, dunnhumby “is trying to usher in a world of new media and to legitimize retail as a medium,” Ken Harris, managing director of Cadent, a CPG consultancy, told CPGmatters. “The way to do that is via omni-channel, marshaling resources from multiple media and proving that they can build a plan that has real results.”
For Nestlé and Tesco, such results offer metrics and immediacy that could be invaluable. “They’re finally trying to connect the dots in ways other people haven’t been able to.” Mr. Harris said.
Nestlé “knows that two things will happen under this program: They’ll get a report that tells them whether the program worked and it’ll legitimize their spend in ways that others don’t,” he said.
Mr. Harris also noted that Nestlé and Tesco “won’t be bombarding shoppers who have absolutely no interest in whatever [promotions] they’re suggesting. That’s what they’ll claim as their secret sauce. It won’t be mass media falling on deaf ears, but rather custom-targeted, highly efficacious, results-oriented” communications.
- Kraft Heinz Aims to Create Growth through Digital Transformation – CPGmatters
- dunnhumby Launches Media Business, Powered by Customer Data Science, that Connects Retailers and Brands to Customers Along the Entire Customer Journey – dunnhumby
- dunnhumby media – dunnhumby
DISCUSSION QUESTIONS: Do the digital tools exist to support personalized communications along the entire customer journey? Will retailers likely take a big step in monetizing their owned media in the years ahead?