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“Imagine a customer who typically buys a bottle of a specific packaged beverage twice a week from your store and two more at your competitors. Through your loyalty program, you offer this customer a deep discount on that same item when he buys his third and fourth bottle from you instead of your competitor. Even better, imagine that the discount is fully funded by the maker of that product,” says Jake Kiser, chief customer officer at Stuzo.

CPG manufacturers are eager for this sort of relationship with retailers, according to Kiser.

“These companies would like to target based on a number of factors, including where customers shop, what they buy, what time of day they buy, what brands they buy and how much they spend,” he said.

“Personalized offers and attacking an individual customer's Wallet Opportunity, or what they are buying elsewhere and not yet with you, isn’t some theoretical thing that might happen in the future,” said Kiser. “They can happen today. But they rely on three things: data that is clean and well-organized, the ability to segment this data in real time and the ability to reach out to the customer through a loyalty program.”

The CPG manufacturer and the retailer need to align their campaign goals, Kiser said. From the standpoint of the manufacturer, these goals might include new product trial and discovery, increased distribution of a certain product, brand conversion, competitor wallet share capture, repeat purchase behavior, and multi-unit purchase behavior.

Kiser emphasized that it’s an evolving landscape. “There’s constant exploration of the best way to leverage the data and technology to benefit both parties.”

From a big-picture standpoint, the main benefit to the retailer is simple: CPG-funded offers that can drive customer visits and increased share of wallet.

It’s important for retailers to also understand how these programs benefit suppliers. What CPG manufacturers want is return on investment. That means showing them data about the sales of products in your store and the growth of distribution of their products across your footprint. “Even better is to show that customer behavior directly changed as a result of the offer,” Kiser said.

Stuzo can help maximize CPG funding to your program and guarantees a 50% increase in members and transactions. Learn more about Stuzo.