In the past 3 years, the Indian FMCG market has exploded with the ‘Sachet Phenomena’. The biggest players in various niches have started aggressively pursuing customer acquisition with the introduction of low priced sachets’ in the price points of ₹ 1.
Distribution aside, the advertising costs of these products are in the tune of crores, all the while hoping and praying that sales would rise.
There is an inherent defect to this hope and pray advertising model. There is no scientific evidence that every rupee spent on an advert is resulting in a purchase.
ENTER CLAUDE C HOPKINS
Claude C Hopkins often touted as the father of modern advertising used a scientific approach to the process of customer acquisition.
In the early 20th century, his factual based newspaper advertisements played a major role in the widespread distribution and adoption of products like;
- Quaker Oats
- Palmolive and many more
As the years passed, his teachings have often been ignored in lieu of fancier, lesser ROI driven forms of advertising.
But it’s time to take the power back.
Advertising shall no longer be a blind man’s game, and more importantly, with the widespread of use of social media FMCG manufacturers can obtain tertiary customer data from Facebook with some help from Claude Hopkins’ Scientific Approach to customer acquisition.
With over One billion Active Users, your brand can reach out to every age segment through the platform.
Of the One Billion Users on Facebook;
1 – 88% lie in the 18 – 29 segment
2 – 84% lie in the 30 – 49 age segment
3 – 72% lie in the 50 – 64 age segment
4 – 62% lie in the 65+ age segment.
HOW TO USE PALMOLIVE’S 20TH CENTURY ADVERTISING MODEL TO COLLECT TERTIARY FMCG DATA USING FACEBOOK LEAD ADS
The appeal to beauty is the strongest desire that can be tapped into and Claude Hopkins used this exact strategy is his central appeals while introducing Palmolive into the soap market. But the question remains. How can you mimic his marketing strategy for the digital age? Here’s how ;
1 – RUN A FACEBOOK LEAD ADVERTISEMENT WITH A FREE TRIAL COUPON – GOOD AT ANY STORE THAT SELLS YOUR PRODUCT
Claude C Hopkins Says;
2 – IN THE FACEBOOK LEAD AD, TALK ABOUT YOUR USP AND OFFER THE FREE TRIAL COUPON IN EXCHANGE FOR THEIR NAME, EMAIL, AND PHONE NUMBER
Claude Hopkins says;
3 – PUT THE LEADS GENERATED INTO AN EMAIL AUTOMATION WHERE YOU SEND LEADS A COUPON WITH THE ADDRESS OF THE NEAREST DEALER, OR IN A BEST CASE SCENARIO HAVE IT DELIVERED TO THEM
Claude Hopkins says;
4 – GET A CLEAR CUSTOMER ACQUISITION COST FIGURE BASED ON THE MONEY YOU SPENT ON ADVERTISING PLUS THE COST OF PRODUCT.
Claude Hopkins says;
“ The cost of the advertisements, including the redemption of coupons was $700. As a result, several thousands of women were using this soap with full knowledge of its quality and purpose.”
THE BENEFIT OF USING THE FACEBOOK APPROACH TO COLLECTING TERTIARY DATA
Third party data providers may have hordes of customers to target, but your marketing messages will be an unwelcome guest into their bubble of life.
Using the Facebook lead ad approach, people who sign up for a free trial are eager customers waiting to use your product and hear from you.
With the leads you generated from Facebook you can;
1 – Run effective customer research operation before launching new products
2 – Drive users to stores with inducements for free trials
3 – Increase distribution with evidence-based data on the widespread use of your products based on the number of free trials requested.
Once you have all your leads in your system – you can use a tertiary sales tracking software to manage these leads by nurturing them into prospective customers.
HOW TO COLLECT OFFLINE TERTIARY CUSTOMER DATA
Before the advent of a tertiary data management software, the simple tools of a pen and paper served as the medium to collect tertiary data. You can make use of these tools as a means to collect data but to effectively manage this information a tertiary sales tracking software can optimize your lead nurturing process.
Having said that, even if you don’t have access to an FMCG CRM, you can collect offline tertiary data using;
1. Feedback Forms
This is a great way to not only collect data but also get real-time feedback about your product. From whether or not a customer likes your product, to feedback on improvements that could be made – feedback forms can help your team find out what the market is looking for and whether or not, your product is solving an existing pain point or not.
2. Sign Up Forms and Free Coupons
Sign up forms can be used to build an offline pre-launch list of potential buyers. By heading out to retail stores you are targeting and offering their customers a sample of your product, you get instant feedback on whether or not – these shoppers want to be alerted about your products big launch. By offering a free coupon code delivered to their email address, you can induce interested prospects to offer up their contacts.
Quick responses and prompt research with an ability to calibrate offerings based on feedback received is an agile skill that can aid FMCG manufacturers in achieving widespread distribution and product adoption. But the key metric to this ability to calibrate is data. Your customers need to tell you if they want your product or not. Free trials are the bait that will help you collect relevant customer data. Using this data – you can build your own database of hyper-targeted interested buyers through both online and offline channels.
While managing large data – a system is needed to consolidate this information into actionable insights. Kapture’s FMCG CRM can help you manage distribution networks, uncover new retail opportunities and manage primary, secondary and tertiary data on a single dashboard.
You can request for FMCG FREE DEMO Here.