From being a brand that is only popular in rural areas, in the past 4 years, Nutifood has risen to become one of the leading brands in terms of market share, especially Nutifood GrowPlus has maintained the title of the number 1 baby milk brand in Vietnam from 2020 until now (according to a report of Nielsen). To have this success, in addition to product quality, what has Nutifood done to be trusted by customers?
According to analysts, Vietnam’s milk market is very attractive with a size of billions of dollars. The growth rate of the dairy industry is predicted to reach 5% – 6% annually, estimated to reach a revenue of about 5.4 billion dollars by 2023. In Vietnam, with the vision of 2025, the production of fresh milk produced in the country is expected to reach 1.5 billion liters. It is forecasted that milk consumption will continue to increase in the coming years, due to the increase in people’s income and the development of modern sales channels and e-commerce.
The dairy industry is a “delicious piece of cake” but not easy to eat. The competition for market share between dairy brands is always a fierce battle that never ends, and Nutifood is not out.
Every year, FMCG businesses like Nutifood always spend a huge budget on advertising with the aim of making a brand impression in customers’ minds (Brand Awareness) and earning Media Lead (potential customers from advertising). Agencies therefore, in addition to the goal of increasing brand awareness, will also focus on optimizing advertising to get as many leads as possible.
But in fact, the conversion rate in the advertising industry is quite low, usually about 1.25%, the price for each Lead brought in can be up to 2,000,000 VND. It is difficult for businesses that do not have strong potential to ”carry” this cost.
Not to mention another harsh fact that many businesses have not seen clearly, or have seen but have not found a possible solution, that is the sale of the business always depends a lot on Lead from advertising. This dependence makes them mistakenly think that just running ads will sell, so with the old-fashioned mindset, many businesses can’t wait to burn the stage. That is, as soon as they have Leads from different sources, they want to switch to immediately have an order.
However, the sales story is not so simple.
Advertising makes the sales process easier, but we forget one thing: It is the post-advertising strategies that strongly influence sales results.
Find potential customer groups
FMCG brands often have instant access to Media Lead at advertising channels. Immedianesity is important, but we are forced to know among them, which customer group needs to be prioritized and focused? Data will help businesses find this customer group easily.
Initially, businesses need to gather all data in a single safe place called CDP.
The next step, after analyzing and understanding the overview of the data, the Marketing team needs to set criteria to segment customers into different files to know which are the group of customers with high potential (high potential).
The last step, businesses need to build a suitable, personalized approach journey with each customer file to get an impressive conversion rate.
With The Master Channel and strong data support from PangoCDP, Nutifood has successfully implemented 10 campaigns within nine months and reached millions of potential customers.
The highlight can be mentioned the campaign “Bé siêu nhân mẹ siêu phàm” (November, 2022), which took place for three weeks, gathering about 200,000 customer data in Nutifood’s CDP. More magically, they can completely segment these 200,000 data according to each unique feature.
Accordingly, the customer data platform has the ability to provide clear, transparent reports, instant data (that is, data collected and output in real-time). Looking at these data, Nutifood easily knows which group of business customers need to prioritize and invest.
Approach personalization continuously
After finding a group of potential customers, businesses need to have a suitable and continuous approach scenario. Moreover, this process needs to take place on an interaction channel like The Master Channel to make it easier to communicate and take care of customers.
In particular, for each customer group, the message needs to show understanding, readiness to meet needs, not simply overwhelming with advertising or promotional messages without personalization.
For example, in the case of Nutifood’s customer, a baby who is using milk under 12 months, by the 11th month, Nutifood will introduce to the mother a product for babies over 12 months and guide the mother how to switch milk optimally. In addition, when the baby starts school, this is also the right time to introduce ready-made milk powder lines, the mother is assured that the baby can still drink quality formula milk such as milk powdered at home to optimize the baby’s development potential. With the correct approach to the audience, meeting the right needs at the right time, is a decisive factor for mothers to continue to believe in love and stick with the brand.
For the dairy industry, reducing the dropout rate is one of the extremely important goals because once customers agree to use the product, they will use it within 1-3 years, even 10 years, so the value each customer contributes to the brand is great. Therefore, building an interactive scenario to maintain the customer’s life cycle with the product will always be the top priority of Nutifood.
To do that, businesses need a system like CDP to store customer data, pre-set up scenarios as well as automatically remind the time of re-engage, so that businesses do not lose the potential customers that they have worked so hard to find from the beginning.
It should be noted that, do not focus too much on the leanness of the approach and care process, do not apply the ”One Size Fits All” scenario (one scenario that applies to all) to all customer groups.
A customer who pays 3,000,000 VND/month needs to have a different approach and care scenario than the customer who pays 500,000 VND/month. What incentives should customers who pay a lot receive during the use, should it be a regular point program or a special benefit? Brands must always pay attention to these aspects to retain loyal customers and make regular customers become loyal customers.
Advocacy Marketing – When intimacy creates loyalty
The dairy industry has a unique characteristic related to the power of word of mouth: Consumers may not believe in advertising, but when hearing others talk about their experience with the product, there is a high probability that they will also convince themselves to try that product. Therefore, among the ways to convince customers to buy a new product, word of mouth is always the most effective way.
So how to find a group of customers who are willing to promote products for the brand?
The answer is: Advocacy Marketing
In the group of customers with high consumption, about 1% of product users love the brand very much and are willing to recommend it to their friends and relatives. This is a group of customers who are ”more precious than gold” that brands are aware of the need to “nurture”, preserve and Nutifood is no exception.’
Therefore, brands have implemented Advocacy Marketing campaigns on The Master Channel such as “Friend Get Friend” or filled out a survey to receive gifts to turn this 1% of customers into a community of people who love and are willing to be “ambassadors” to promote the brand.
“Friend Get Friend” campaign on The Master Channel
‘Friend Get Friend’ is a Marketing campaign that helps brands attract new customers through referrals from current customers. The mechanism of operation of this campaign is to encourage customers to refer their relatives, friends or colleagues to the product or service through attractive rewards or promotions. For example, when a customer successfully introduces a friend, both can receive special offers, discounts, bonus points, or other rewards.
Nutifood also carried out a campaign ”Friend Get Friend” called: “Mùa hè của bé siêu nhân” for the Nutifood GrowPlus+ product line. Nutifood stimulates customers to participate with 1,000 attractive gifts when customers take all three steps:
Step 1: Click join the program via the link to the website https://vutrugrowplus.nutifood.com.vn/ and fill in some basic information to join the Mini Game.
Step 2: Confirm the information and click to “Follow” GrowPLUS+ Zalo OA. This is the step that leads customers to The Master Channel (Zalo) of the business to easily take care of.
Step 3: Share the program with acquaintances and friends. As long as three friends successfully register, customers will receive attractive gifts from Nutifood.
All this data will be tracked by the CDP system from the time the customer fills in the information, tracks the OA to the introduction of friends. The reporting system will also help Nutifood measure the effectiveness of the campaign and the number of new customers acquired after the program to build appropriate outreach scenarios, turning them from interested people to customers of Nutifood.
Satisfaction survey campaign on The Master Channel
Nutifood will actively send surveys to customers who regularly buy to measure their satisfaction with the product. For example, after a period of time customers buy and use products, information obtained from CDP, Nutifood will send a survey message to receive gifts to customers through The Master Channel, here is Zalo. After filling in the information, customers will receive thank you messages and gifts from the brand, possibly a Voucher to create joy and motivation to continue shopping for customers.
In this way, Nutifood can know the customer’s assessment to improve and enhance the quality of products and services. At the same time, for negative feedback, Nutifood can also grasp and quickly allocate a team of consultants to solve problems in order to get the highest satisfaction from customers.
The result for Advocacy Marketing campaigns on The Master Channel is the successful construction of a community of people who love the Nutifood brand, from the community of diabetic patients to the elderly… The Nutifood brand in general and each Nutifood milk brand in particular have reached more potential customers.
Nutifood will not be successful on the journey to bring products to the minds of consumers without the contribution of The Master Channel and the role of the CDP. All have helped Nutifood reach the right target audience, optimize advertising budget, build a community of people who love, and are willing to bring Nutifood’s products closer to consumers nationwide.
Not only data exploitation strategies, but also detailed marketing campaign implementations for businesses based on data orientation and much new knowledge around The Master Channel will be presented in detail in The Main Interaction Channel – The Master Channel, Volume 1.
Six chapters of the book will guide readers through the impressive development journey of interaction methods between businesses and customers.
From the most primitive forms to multi-dimensional interactions in the smartphone era, the book will present successful stories along with leading global brands in boosting revenue by enhancing customer experience, explaining the success of The Master Channel concept when applied at two leading Vietnamese companies, Nutifood and CellphoneS.
The book is now available at Fahasa, Phuong Nam, Hai An, Ca Chep bookstores, and online at 24h bookshops and e-commerce platforms like Tiki, Shopee, and TikTok Shop. You can also quickly order the book here: https://i.o2o.vn/H767
