How CPG Brands Are Becoming Nearer to Customers to Gather First-Party Data?

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As the privacy regulations such as the GDPR, CCPA and the intensifying assault on cookie tracking, first-party data is getting more important than ever, unfortunately, a few companies have a more troublesome time collecting first-party data than others. CPG companies specifically encounter big challenges building treasure troves of first-party data as they have previously sold their creations through third-party distribution channels and the amount of information they obtain about end customers is partial.

Understanding that in the absence of first-party data makes them more and more vulnerable; CPG firms are spending a lot in endeavours to set up direct relationships with customers that produce first-party data.

There are so many proposals that CPG companies are using to collect first-party data. These include:

Brand microsites

Several CPG brands work microsites for their brands. A large part of these microsites both offer product details and ask visitors to hand over private information including name, email address and phone number in return for special offers, like coupons and discount codes. Besides this, microsites are accustomed to gather information related to contest and sweepstakes campaigns, which can also be efficient tools for persuasive consumers to offer private information.

D2C offerings

In case they are to going to bring traffic to websites they own, obviously, they would try to sell products to customers while they’re there. An increasing number of CPG brands are doing only that and switching on the D2C bandwagon and launching offerings through which they sell directly to shoppers.

For instance, CPG giant Nestlé runs ReadyRefresh, a beverage and beverage supply delivery service, a subscription service for its Proactiv acne treatment brand, and an ecommerce site for its pet care brand Purina.

With its forceful D2C push, Nestlé created 8.2 percent of its sales from D2C offerings in 2018. Those offerings assist the company gather first-party data, which it seems to be put to instant use. According to the company, 10 percent of all its consumer contacts are currently personalized.

Most CPG D2C attempts are based on usual and subscription ecommerce models but some CPG brands are even testing with crowd funding to supply new products to market. Also, a few companies are even going so far as to spend in or obtain D2C upstarts. Two of the most famous examples of this are Unilever’s attainment of Dollar Shave Club for US$1 billion in 2016 and Edgewell Personal Care’s achievement of Harry’s for US$1.4 billion this May.

Offline experiences

As it’s tough to contend with digital channels when it comes to scale, a few CPG firms are discovering value in generating offline consumer touch points. Beer and spirits behemoth Diageo, for example, has made a number of museums with retail components. One of them, the Guinness Storehouse, has reportedly turned one of the famous tourist attractions in Dublin, attracting over 1.7 million visitors last year.

The Guinness Storehouse has several bars and cafes and restaurants, and tourists can take part in so many experiences like the Guinness Academy, that teaches participants how to “pour the perfect pint”. Due to its fame, Diageo permits tourists to purchase tickets for the Guinness Storehouse online and even offers additional items, such as a fast-track option to omit the lines and the capability to preorder personalized glasses.

Obviously, the Guinness Storehouse provides Diageo a lot of opportunities to work together with Guinness lovers and produce valuable first-party data from those interactions.

However, CPG companies don’t require setting up permanent physical spaces like the Guinness Storehouse to attach with consumers and gather valuable data. Events, like Lipton Ice Tea’s ‘Be a Daybreaker’ event in London, which attracted visitors with a 100-meter inflatable water slide, are also growingly popular with CPG businesses.

These events both provide a way to employ customers and gather useful data from them.