Kellogg's: data-driven precision marketing

Kellogg's sees enormous benefits from 'data-driven precision marketing'--and that's why the company, known for cereals and snacks, is testing new ways to connect with its customers.

A few months ago, the firm established a Special K ecommerce platform (with tech partner Dotter) to learn more about brand interaction and shopping behaviour.

To streamline the purchasing process for people who search out brand and product data online, Kellogg's arranged to link this Special K site with leading grocery retail sites. Almost immediately, Kellogg's observed positive conversion rates--meaning that people who visited the Special K site were interested in buying.

Over the next few months, Kellogg's found that 50% of Facebook users who clicked on the Special K section then selected and browsed the site of a specific grocery store, indicating a high intent to purchase. For consumers who did not place a Special K product in their online trolleys, Kellogg's offered a coupon to be used in the store.

All these transactions provide valuable marketing data about shopper demographics and buying patterns, including which combinations of products shoppers look at and which tend to be ordered (and when). By analysing this information and correlating to brand advertising programmes, Kellogg's can see how its marketing efforts are working.

Another area for further development is mobile coupons. Here, Kellogg's would be able to send money-saving offers to customers who want these promotions...and be able to track the redemption of these coupons, providing even more data for precision marketing.

By the way, Kellogg's is a social media marketer. On Twitter, Kellogg's UK has more than 13,000 followers. Late in 2012, the company used a four-day pop-up shop called the Tweet Shop to promote the introduction of new Special K cracker crisps. By offering freebies to consumers who used the hashtag #tweetshop, Kellogg's boosted brand awareness, demonstrated its social media savvy and gave the new products a headstart.