It’s refreshing when the head of marketing for a Consumer Packaged Goods (CPG) brand opens up and shares his insights on best practices around tracking and measuring the impact of digital marketing that drive in-store sales. For years, this has been a challenge as the ecosystem between retailers, data providers and manufacturers has been relatively immature.
This summer, I had the opportunity to speak with Sanjiv Gajiwala, VP of Marketing at Mike’s Hard Lemonade and I asked him about how he had effectively streamlined his company’s ability to directly measure the effectiveness of their digital marketing efforts. In addition to this article, you’re welcome to watch the full interview on YouTube.
Matching Facebook Ads to Credit Card Purchase Data
“We work with Oracle and their data provider, Datalogix which actually looks at our Facebook ads and the users that are exposed to those Facebook ads and connects that back to their credit card and purchase behavior,” says Gajiwala. “Datalogix has a way of matching users to their actual purchasing and what we’ve really been able to learn from that has been incredible.”
Gajiwala explains that Datalogix fits within Mike’s Hard Lemonade’s social listening ecosystem. “We’re looking at brand health and what people are saying, but it helps us complete the picture with their purchase behavior,” he says.
Key Learning From This Purchase Behavior Data Layer
“We’ve learned some really incredible things,” says Gajiwala, “People who are exposed to our [Facebook] ads that are Mike’s users are spending 5% more. And 84% of people exposed to Facebook ads on Mike’s definitely would or are very interested in purchase Mike’s after seeing the ad or our content we’re promoting. You start to see that both of these numbers start to synch up, which helps validate what we’re seeing in the soft data versus through the register data.”
Digging in a bit further, Gajiwala acknowledges that this work with Datalogix does not allow Mike’s Hard Lemonade to segment by individual retail store since the data provided is driven by credit card purchases. “Instead of looking at [individual] retailers, we are able to look at the segments of our consumers between heavy, medium and light users and understand what kind of content and what kind of behaviors we can expect from that different type of consumer.”
Breaking Down Geographical Relevance
As Mike’s Hard Lemonade is sold nationally, I asked Gajiwala about how they review the geographical relevance of the sales data driven by their digital marketing efforts. “Datalogix and Oracle are doing the mashination including geographic and penetration data,” he said, with the understanding that some of these insights are a combination of Facebook geographic data and credit card transactional data.
This gives Mike’s Hard Lemonade an additional layer of insights that help with better understanding purchase habits by consumer segmentation (i.e. heavy to light) overlaid with geographical penetration insights to help with better understanding geographical flavor profile preferences and where marketing budgets are best spent on a local geographical level.
Insights Leading to Incremental Investments in Social Strategy
“Through this work we uncovered that there were a whole group of people that, profile-wise, were like our Mike’s heavy users that we weren’t reaching,” Gajiwala said. “They were heavy [Flavored Malt Beverage] users, but they weren’t really engaging with Mike’s. That lead to an incremental investment in our social strategy.”
This allowed Mike’s Hard Lemonade to then track back to see if they are getting the same sort of lift from this new target of previously ignored heavy non-Mike’s users and determine if the incremental investment is performing in a similar fashion to their core marketing investments.
“Our prospecting and our farming strategies are both different on social but just as measurable,” Gajiwala said. That is to say, with a relatively small team, everyone at Mike’s Hard Lemonade is accountable to the data.
What Gets Measured, Gets Managed
The bottom line here is that with the addition of the Datalogix reporting, Mike’s Hard Lemonade is finding new opportunities that it had previously ignored while, at the same time, seeing the direct impact on retail sales from its digital marketing efforts. This is the growing trend at retail. With a growing number of options to track and measure marketing impact, your ability to interpret data gives you a competitive edge. The most effective content and social media ads will receive increased and even incremental budget to ensure brand health and continued sales growth at retail.
For more on this topic, see these two related articles: What It Takes to Exceed Shopper Expectations and Empower Retail Employees and Not All Retailers are Contracting. Here’s the Secret From One That’s expanding.