- Watch part 1 to learn about the top 3 challenges in FMCG retail, which covers:
- The FMCG Landscape: the online appearance of a Sainsbury’s-Asda merger
- The Retailer Black Box: how brands understand their true performance on supermarkets and retailers
- Customer Loyalty: how retailers keep their loyalists “exclusive”
- Watch part 2 to learn about how to increase and retain your readership, which covers:
- Acquisition: using AMP to your advantage
- Loyalty: engaging with tour exclusive audience
- Monetization: informing your commercial efforts
- Watch part 3 to learn about how to identify and reach super customers, which covers:
- Identifying opportunities: looking at audience engagement
- Reaching your super customers: using search and clickstream data
- Nurturing your loyalists: how to keep your ‘exclusive’ exclusive and migrate your overlap
Part 1: The Top Three Challenges in FMCG Retail
What will a merger between Sainsbury’s and Asda look like online?
Looking at the online market share for the top 10 supermarkets, we can see that Tesco is a market leader. They attract 2.42 million people, followed by Asda and Sainsburys during April and May 2018. If we saw a merger between Asda and Sainsburys, they would have a combined total of nearly 3.5 million unique users – 44% greater than Tesco overall.
Top 10 Supermarkets
Online Audience Size Total Unique Users, 4 weeks to 12thMay
Defining your audience by exclusive vs. shared loyalty
To keep your loyalists, you must first identify why they come to you, and why they go to your competitors. We can see in terms of Tesco and Nectar cardholders that there are almost 3 million unique users for each retailer. When we zoom into the combined audience, we can see unique users are roughly about 1 million for this period, equating to almost 30% of Tesco and Nectar’s engaged audience.
Engaged Tesco Clubcard vs. Nectar Card
Audience Overlap (4 weeks to 5-May)
See how you can overcome FMCG retailer challenges below
Part 2: Increasing and Retaining your Readership
Audience overlap – Vogue vs. Cosmo
People generally consume more than one source of media, so, brands question how to retain exclusive audiences and how to promote loyalty. Looking at Vogue and Cosmopolitan audiences, we can see that over 440,000 people have only been to Cosmopolitan, and over 180,000 people have only been to Vogue. When we highlight the shared audience between these magazines, we can see there are nearly 30,000 people who visited Vogue and Cosmopolitan.
Vogue vs. Cosmopolitan
Tesla’s halo effect
Using the release of Tesla’s first mass-market mid-range electric car as an example, we can see that audiences searching for Tesla Model S, X & 3 ramped up in July to over 127, 000, showing the direct uplift of their campaign. Most notably, this launch had a halo effect on all search terms around electric cars within this period. We can see that there was a huge increase in July, showing +108% growth MoM during this period.
Learn how to retain and increase your readership
Part 3: Identifying and Reaching Super Customers
Audience engagement vs. volume
Finally, we will look at Gymshark as an example to illustrate how to identify super customer opportunities. We will see that engagement metrics can sometimes be better than volume-based metrics when identifying brand advocates. If we only look at the volume-based metrics, we can see that Gymshark attracts and reaches a large number of 18-24 yo females. Consequently, when we consider the engagement metrics, we can see that males in this 18-24 yo age group visit and spend more time on the Gymshark site.
By Audience (18-24 yo Renters)
|Metric||18-24 yo Female Renters||18-24 yo Male Renters|
|Average Visits/ User||3.4||7.0|
|Average Time/ Visit||3m 14s||4m 43s|
Segmenting by Frequency
We will use engagement metric frequency as a starting point for identifying how to reach super consumers through search and clickstream data. The ability to gauge engagement is crucial for the News and Media industry. This example highlights how frequency was used to segment for a leading UK News Provider. By segmenting readers into three different groups over a twelve-week period, this publisher was able to see that the low-frequency segment was ten times the size of the high frequency, and the mid-frequency was three times the size.