How FMCG companies can lower their acquisition costs

Recent research by research firm Nielsen shows that for most FMCG companies, increasing market penetration is the No. 1 objective. Through the use of ads (and especially online ads) companies try to increase their penetration. Remarkably, all these ads are primarily aimed at increasing awareness. The success of the campaigns is measured in clicks, but almost never in sales. But why not? “Impractical,” you may say, but why? Why don’t FMCG companies spend more money and attention on media and activities that create (more and better) conversion and on campaigns that lead directly to a purchase (intent)?

Higher return on your marketing dollar

You can indeed get a higher return on your marketing dollar if you bring your marketing and sales activities more in harmony. In other words: if you develop more activities that almost directly lead to a purchase intention, you can drastically reduce your customer acquisition costs. We give you three golden tips:

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Golden Tip #1: Add a clear call-to-action to your campaigns

Over the past few decades, people’s average attention span has decreased by a third. Consumers have only a few seconds left to pay attention to your message. So why invest only in awareness when you can also use their limited attention span for your brand to give them purchase incentives? Let consumers experience, experience and buy your product. Preferably in that order, too. We are not saying you should stop with mass media campaigns, but link an action component to it more often. For example, a location where people can try out your product. This can be a supermarket, but also another location. After all: trying = believing. A cashback promotion can also entice consumers to buy and experience your product.

Golden Tip 2: Measure your conversion to real intentions

Campaign conversion is usually measured in clicks, likes or leads. But why not use metrics further down the funnel, such as purchase intent and actual purchases? Linking your campaign spend directly to the impact on sales works not only for online purchases, but also for in-store purchases. For example, with a combination of a sampling campaign + in-store activation + cashback or win or save campaign, you go from “I saw that product” and “I want to know more about it” to a direct purchase. And of course, in order for a consumer to participate in the promotion, you have to leave contact information. And that’s where golden tip 3 comes in.

Golden Tip 3: Collect and use first-party data to optimize your media

Whereas “awareness media” often serves only a single purpose, you can achieve multiple goals with conversion campaigns. Because a conversion campaign not only leads to purchases but also gives you valuable (first-party) data. Data such as email addresses and sales data that allow you to send consumers targeted and personalized offers with a clear call-to-action attached. We’ll tell you much more about it in this article. And this too ultimately contributes to lower customer acquisition costs.

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More information?

Want to know more about how Lime Factory can help you get more return on your marketing budget? Then feel free to contact Govert Noordman and he will tell you how we can help you with concrete and measurable actions.