A Four-Point Guide to the Importance of Engagement in the FMCG Industry

According to research, understanding brand health begins with understanding the connection between consumer engagement and value to the brand. It demonstrates that for nearly all brands, leadership is attained by securing emotional commitment (adorers) from a small percentage of the brand community, the high-value consumers (HVCs). Minor adjustments in the management of these HVCs can have a significant impact on sales, margin, and market share. Or, to put it another way, HVC strategies can significantly affect revenue protection, revenue growth, revenue development, and cost of sales.

DSR Payments
New and exciting opportunities for brands to grow engagement with their brand community have emerged due to the convergence of two forces (new, less expensive technologies and consumer behaviors).

CPGs, on the other hand, have had negative experiences with direct and interactive communications and still need to prepare to take advantage of the opportunity. Instead, they rely on conventional methods of brand development that neglect, for example, digital and relationship management techniques and payments and engagement in fmcg industry. Brand managers must shift their attention to a stewardship role focused on consumer engagement and value, bringing in media and subject matter experts as needed.

More than others, some markets and brands will profit. In particular, brands with a high HVC concentration, an "information requirement," and a community that supports the spread of viral messages are likely to see benefits more quickly in regulated, mature markets. This article's extract looks at the value of consumer engagement. Please leave your email address, and we will send you the complete report with graphics since the pictures and illustrations cannot be published in this blog.

Objectives for brand management

To encourage customers to make wise purchasing decisions, brand management aims to create a set of perceptions and attitudes about a good or service in their minds. Market research and retail audits are typically the tools brand managers use to learn more about their target audience, what they buy, and how much they spend. Effective communication techniques like advertising, sales promotion, packaging, display, and the like can affect consumer behavior through payments and engagement in fmcg industry. These approaches can only be customized to deal with specific consumers if there are differences between them.

More equally than others are some consumer

The Pareto (80/20) rule applies in some way to almost all brands, and research has consistently shown brand managers that consumers are not a homogeneous group with varying levels of engagement with the brand and different brand values. The relationship between "engagement" and value has been demonstrated by numerous research studies, which is significant. 

Visibility & Loyalty
Few consumers make or break a brand, which is the overarching finding of engagement and value research.

Think about the following eight essential ideas, which have been gleaned from various studies in this field.

First, consumers have a higher financial value the more engaged they are with a product or service or how "emotionally loyal" they are. As customer engagement rises, they'll typically spend more money with you.

Second, highly devoted or engaged customers (adorers) propel brand performance. Ogilvy BrandZ Loyalty Index can create this type of profile for many consumer brands in many nations around the world, as shown in the chart below for two different organizations in the same sector. Customers' value dramatically increases if you can get them to go from mildly engaged to committed. A committed consumer is worth 5-8 times more than a typical consumer.

Thirdly, not all loyal customers have the same worth. If you were to divide committed consumers into HIGH, MED, and LOW category spenders, the HIGH spenders might spend about 5x as much as the LOW spenders, even though the consumer may be very engaged with your brand and purchase your product every time they spend money in that category.

Fourth point is that achieving commitment is very challenging. Customers are thrifty with their "loyalty.". A tiny portion of the brand community will be loyal to each brand in the category. Rarely is this loyalty acquired through a price or a sales promotion; instead, it must be earned. The three factors that drive commitment are relevance (you can't be committed if the category isn't relevant to you), interest (you can't be saved if you're not interested in the class), and uniqueness (you can't be committed if you believe multiple providers have the same proposition for each category). in some types, more than others, it is challenging to create devoted customers.

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