CONNECT MEDIA: The first measurable retail media now available on the market! [Case study]

Connect Media from dunnhumby gives brands a powerful tool with which they can ensure an effective shopping journey and raise the quality of the consumer experience in Tesco stores.

Thanks to dunnhumby's agreement with Tesco, concluded in October 2017, dunnhumby took over the management of POS communication planning and execution services, in-store demonstrations and online media. This expanded the area of cooperation, which until then had covered the Tesco loyalty programme and mailings. Brands will be able to use Connect Media's unique capabilities in planning, executing, measuring and analysing the effectiveness of online and offline campaigns carried out on the basis of knowledge about the consumer behaviour of six million active Clubcard customers in Central Europe. The service will be available for campaigns planned from 1 January 2018.

All parties win

For 25 years, dunnhumby's strategic approach, proprietary insights and diverse media have provided a competitive advantage to customers including Tesco, Coca-Cola, L'Oreal and Procter & Gamble. Michalina Truszkiewicz, Head of Connect Media Central Europe, said: - “Our multichannel Connect Media campaigns benefit all three parties in the process. The retailer gets the opportunity to use media that reach its consumers at the right moment, brands can implement their strategies, and the consumer gains a richer consumer experience in the store itself, better tailored to their needs, which increases loyalty to the retailer.”

Communication between channels

This business model had previously succeeded in other markets. Over the past 4 years, dunnhumby has carried out 2,865 campaigns in British Tesco stores. In Thailand, where Connect Media has been operating for 2 years, more than 1,000 campaigns have already been created for over 200 brands and their agencies, generating 18.5 billion brand contacts and acquiring more than 24 million new consumers for their products. Connect Media allows brands to bridge the gap between ATL and BTL campaigns, reaching consumers with the right, precise communication at home (via Clubcard mailings), on the way to the store (via Tesco.com and SMS) and finally during shopping (POS tools). This brings a richer shopping experience to consumers and leads to stronger loyalty to the chain.

Stephen Russell, Managing Director of dunnhumby in Central Europe, said: “We combine brands' goals with our media offering, which will bring the best results based on knowledge gained from analysing consumer data. We then precisely measure the impact that these activities delivered. We measure the impact of our campaigns in 3 dimensions:

• Exposure matrix: the ability to come into contact with the campaign at various levels: CPM, repeatable reach to the consumer in order to increase the activation rate
• Sales: sales growth, unit growth, penetration rate or the number of additional consumers
• Consumer behaviour: profiles, shifts between products or brands

This gives marketers the ability to take an in-depth look at campaign results and allows them to make decisions based on data, not hunches.”

To show an example of integrated communication, dunnhumby presented the Nestle case study - a campaign carried out in the United Kingdom. It was planned on the basis of consumer insights and a media portfolio that were used to identify and reach key consumers with the desired message at various consumer touchpoints.

NESTLE CASE STUDY

Campaign objectives

Sales in the coffee category at Tesco were recording overall growth. However, the two largest areas of this category – Premium and Regular instant coffee – were declining. The source of this decline was inactive consumers. dunnhumby worked with Nescafé, one of the largest suppliers in this category, to create an integrated campaign that would reverse the downward trend by attracting and engaging Tesco consumers.

Campaign plan

The first step was to use knowledge about consumer behaviour to plan the process. The data analysis carried out by dunnhumby showed that:

• The decline in sales of premium and instant coffees affected stores of all formats and all consumers;
• The decline was caused by dormant (inactive) consumers – even the most loyal ones, i.e. those who visited stores most often and spent the most in them, were moving away from this category
• Recovering inactive loyal consumers and expanding the base of current instant coffee consumers would allow Nestle to reverse the declines.

Consumers were identified using analysis of Clubcard consumer behaviour data.

How was the target group selected?

The campaign focused on current and inactive (dormant) consumers, who were identified using analysis of Clubcard consumer behaviour data carried out by dunnhumby.

• Current consumers – i.e. Tesco shoppers who were also loyal consumers of coffee and Nescafé. The goal was to expand the line of coffees purchased, which would result in a higher level of spending
• Dormant consumers, i.e. loyal Tesco shoppers who had been loyal consumers of coffee and Nescafé in the past but had become inactive over time. The goal was to improve reach by regaining their engagement.

Execution

Together with Nestle, dunnhumby created an integrated campaign that assumed strong use of Connect Media tools, including mailings, in-store demonstrations, POS materials and advertising on Tesco.com. Promotional displays at the ends of aisles (aisle ends) were used to present various products from the Nescafé line and a strong promotional message “3 for 2”.

AT HOME

• The most loyal consumers, classified as VIPs, received mailings devoted to “coffee moments”, which, thanks to the range of coffees available at Tesco, they could enjoy in the comfort of their own home
• The mailings contained personalised coupons that entitled them to collect a gift at a nearby large-format store.

IN STORE:

VIP consumers could collect free sample packs at 50 Tesco Extra stores.

• Every Tesco consumer could try different coffees at a tasting stand.
• Tasting stands were also located at the entrances to large stores.
• Eye-catching POS materials at aisle ends educated shoppers, particularly highlighting the wide range of products from the Nescafé line.

TESCO.COM (online store)

• Permanently displayed advertisements in the grocery section of the site, in the favourites section, in special offers and in the Tesco Direct online store.
• Coffee lines were presented in shopping list tabs.
• Search engine settings showed a wide range of choices to active consumers and drew new ones' attention to the products.

Post-campaign period

For 12 weeks after the end of the campaign, shoppers received Clubcard coupons at checkout as an incentive to make repeat purchases.

RESULTS

The main thrust of the campaign was in-store activity. However, precise targeting and effective integration of activities meant that consumers had a consistent brand experience at all consumer touchpoints. The campaign produced the following results:

• 13% growth in the coffee category at Tesco
• 9% increase in the total value of the shopping basket during the promotion,
• 24% growth in sales of Nescafé instant coffee,
• 35% more new Nescafé consumers.

Connect Media from dunnhumby is already accepting orders from brands and agencies for campaigns planned from 1 January 2018.