Personalization is key to FMCG marketing success in high-growth markets.

Imagine receiving a personalized email from your favorite coffee brand with a coupon for your next purchase, just when your coffee is running low. How likely are you to make that purchase? At least 60% likely, according to research. The research also shows that this type of personalized campaign is very effective and can deliver up to 48% more revenue for the brand.

Personalized marketing is crucial to driving revenue growth, as a study by McKinsey shows that fast-growing companies drive 40% more revenue from personalization than slow-growth brands. But unfortunately, the B2B brands in high-growth markets across LATAM and sub-Saharan Africa still lag the B2C industry in providing personalized marketing.

There is, however, a huge incentive to figure it out, as becoming a leader in personalized marketing can generate over $1 trillion in value. To unlock this value and generate top-quartile performance with personalization, FMCG brands need to build an excellent data capturing and analytics engine that will enable marketing leaders to tailor their offerings to reach the right individuals at the right time.

Why is personalized marketing vital for FMCG brands?

As online interactions surged in the wake of the pandemic, more customers became exposed to the personalization practices of the B2C industry – from personalized movie recommendations on Netflix to carefully curated music playlists on Spotify and recommended products on e-commerce platforms. As a result, research shows that 70% of customers expect personalization interactions more than ever, and 76% get frustrated when these interactions don’t happen.

There is, however, a huge incentive to figure it out, as becoming a leader in personalized marketing can generate over $1 trillion in value. To unlock this value and generate top-quartile performance with personalization, FMCG brands need to build an excellent data capturing and analytics engine that will enable marketing leaders to tailor their offerings to reach the right individuals at the right time.

There is, however, a huge incentive to figure it out, as becoming a leader in personalized marketing can generate over $1 trillion in value. To unlock this value and generate top-quartile performance with personalization, FMCG brands need to build an excellent data capturing and analytics engine that will enable marketing leaders to tailor their offerings to reach the right individuals at the right time.

Personalized marketing is even more critical in the B2B industry, as it’s a traditionally low-loyalty environment. FMCG distributors and retailers will often switch to carrying the products of any brand with the most attractive trade marketing campaigns or promotions. The data also supports this, as 72% of customers say they expect the brands they buy from to recognize them as individuals and create positive experiences that make them feel special.

However, creating personalized trade marketing promotions and campaigns is almost impossible for FMCG manufacturers in high-growth markets due to the lack of real-time, syndicated data across the supply chain and an integrated data analytics solution. It’s therefore not surprising that only 15% of B2B marketing leaders believe that their company is on the right track with personalization.

See how a lack of merchant engagement costs FMCG brands billions of dollars

The data challenge in high-growth markets

Personalization is impossible with the ability to understand customers’ unique needs on an ongoing basis. With real-time data on what a consumer needs or will need in the future, FMCG brands can easily recommend products to meet those needs, leading to increased sales and higher revenue. For example, Amazon and other e-commerce platforms can provide valuable recommendations to shoppers based on the data generated by both the user and the others on the marketplace. These personalized recommendations are responsible for 35% of all sales.

Available data also shows that customers are happy to share data for a more personalized offer; however, FMCG brands across LATAM, Sub-Saharan Africa, and other high-growth markets lack the capacity to capture this vital customer data. For these manufacturers in high-growth markets, end-to-end visibility across the supply chain is almost impossible, as brands cannot access any data on their products once it leaves the warehouse to the distributor and retailers. The fragmented nature retail landscape also means that field agents cannot capture a detailed view of the market in real-time. Ultimately, FMCG marketing teams are left blind and can only design generic promotions and campaigns that cannot drive consistent, month-on-month growth.

Speaking on the data challenge that FMCG companies in high-growth face, Director of Sellers Marketing at RedCloud, Samantha Norman said, “One thing we see when we engage with FMCG brands and larger distributors is the “data darkness” that they have to operate in. It’s honestly quite astonishing to see these businesses, who trade millions of dollars in monthly transactions, lacking so much valuable insight into their product consumption trends.

As a marketer who understands the power of data, I have made it my mission to share with these businesses the true value of data and how they can leverage analytics with RedCloud’s Open Commerce to improve marketing operations and outcomes for their supply chains.

Companies with advanced personalization capabilities have found proven ways to increase revenues by 5-15% and increase marketing spend efficiency by 10-30%, primarily by deploying direct, personalized communications and recommending the right products at the right time. The only way FMCG brands can unlock marketing success with personalized marketing is to develop systems that can collate and analyze real-time transaction data across the entire supply chain. Furthermore, brands need a data analytics engine that can identify changing demand patterns and deliver actionable insights based on the captured data on easy-to-understand dashboards.

That engine is Open Commerce.

Build data excellence and unlock personalized marketing at scale with Open Commerce

Open Commerce is a new way of trading that unlocks the full value of the supply chain by connecting FMCG manufacturers, distributors, and retailers on a single digital platform. With Open Commerce, FMCG marketing leaders can access valuable data on their customers in real-time and leverage that data to create data-driven growth campaigns that work.

RedCloud has built the world’s first Open Commerce platform, Red101 Market, and decentralized digital trading in high-growth markets, making it easy for any retailer to trade digitally and directly access any brand or distributor.

With Red101 Market, we have taken the secret behind the success of e-commerce giants like Amazon, and placed it in the hands of every manufacturer, distributor and retailer. Unlike traditional e-commerce platforms, however, sellers gain visibility over who buys their products and where the demand for those products is. The platform captures real-time syndicated transaction data across the entire supply chain, and the in-built market intelligence software analyzes the data to provide actionable insights, which are then displayed on a customizable dashboard

Now, marketing leaders in the FMCG industry can better understand their customers and create promotions that drive growth. Sales teams can also function more effectively, as sales reps can evolve from simply visiting retailers or distributors to take orders. Instead, the sales reps are transformed into intelligent territory managers who can drive growth at scale.

The future of Commerce is Open, and RedCloud is unlocking that future. Schedule a demo today to discover how you can unlock personalized marketing at scale and drive consistent, month-on-month growth for your brand.

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