Are Your CPG Brands Maximizing the Return on Your Digital Investment?

1. Are Your CPG Brands Maximizing the Return on Your Digital Investment? October 2, 2012

2. Who we are Judy Bahary Sr. Vice President, Agency & CPG Market Solutions comScore Ryan Krenn Senior Manager, CPG Digital Marketing Solutions Accenture Interactive John LaRocca Vice President, Media Solutions dunnhumbyUSA

3. About our companies Accenture is a management consulting, technology services and outsourcing company, which has offices and operations in more than 200 cities in 54 countries. comScore is a global leader in measuring the digital world and preferred source of digital business analytics. dunnhumby is the leader in personalizing the world’s experience of retailers and brands. We help companies put the customer at the center of every decision by using our insight to improve customers’ experiences and communications to earn their lifetime loyalty..

4. Agenda • Background: The Need for this Study • Research Methodology • Findings • Key Takeaways • Future Research

5. The need for this study • Effectiveness of CPG websites is a mystery • CPGs invest millions in brand websites and social media, yet struggle to show how they influence sales • Little is known on what works online • Digital agencies are always coming up with new ideas and recommendations for CPG websites, but little is known about what works • Gap between web and in-store sales • Web analytics & online panels measure browsing leading to an online purchase • Most CPG purchases are made offline- gap between site visits and offline purchase

6. Research objectives Do consumers visiting a brand’s website buy more than non-visitors? Where are brand buyers spending their time online? What website features drive in-store sales?

7. Integrating data sources Single-source, privacy protected data linking online activities and in-store buying behavior at the HH level. Website Visiting & Search Loyalty Card Video Online Transactions Advertising Exposure UPC Scan Data 1 Million US Internet Users 60 Million Households

8. Accenture Web Evaluator (AWE)52 metrics scored with benchmarking for 350+ leading global sites Branding Navigation Engagement • Link navigation, call-to-action • Simple menus, fast load times • User driven intuitive navigation • Site maps • Multiple integrated routes • Clear “welcome to brand” content • Compelling brand proposition • Consistent message onsite • Clarity of message • Surveys, demos, live chat, tools, tutorials to interactively engage • Downloads - apps, audio, video, buying or ‘how-to’ guides, games • Contest, sweepstake, promotions Globalization Relationship Building Information • Daily refreshed content • Product comparison feature • Ratings, reviews, product benefits • Product selection features • Separate product & corporate info • Easy switch to other countries • Local language content & currency, customer service • Consistent look & feel across languages & countries • Loyalty program, CRM • Personalization & customization • Login registration provides custom content, news, games, product recommendations, saved basket Service Commerce Social • Popular social features • Active community posts & UGC • Brand participation with lively discussions, deep knowledge • Promotional events Nike+ 10K run • Easy, secure purchase • Clear pricing & promotion info • Accessories & related products • Omni-channel on+offline - return • Store locator • Instructions, manuals, recipes • Effective self help, demos, FAQs • Service via email, chat, phone • Allow feedback via reviews, surveys, forums

9. Research methodology • Examined 10 food & beverage + household product brands: • Between $40 million and $3 billion in annual sales • 5%+ household buyer penetration • Between 100,000 and 2.3 million unique site visitors a month • Study period: September 2010 - February 2011 • For confidentiality, individual brand results cannot be disclosed • Represent a wide range of website and buyer behaviors • Findings presented to the FMI and GMA (joint sponsors of the research)

10. Findings

11. Most CPG brand websites attract relatively few visitors Source: comScore, 2011

12. Some CPG websites drive incremental in-store spending On average, website visitors spend 37%more than non-visitors … For 20% of brands, web site visitors bought LESS THAN non-visitors. What does that say about the quality of the online experience? but one brand achieves a 105%incremental spend from visitors vs. non-visitors

13. Website visitors pay less per unit than non-visitors On average, website visitors pay 8% less per unit than non-visitors … couponing strategy? but some marketers earn 2% higher unit price from visitors using brand value messaging

14. Engagement does not translate to exclusivity Website visitors spend 53%more in the category than non-visitors … and purchase 58%more units in the category

15. Illustrative case for CPG digital marketing Internet ROI Study results Value of one Brand

16. Features of CPG brand sites

17. Web site features that drive traffic, engagement, and sales Which CPG web site features maximize off-line sales? Business impact: Marketers need to generate a constant stream of fresh content in all channels to keep consumer attention and increase purchases.

18. Who is doing it right? Product Ratings & Reviews (Video)

19. Who is doing it right? eNewsletter Program Signup Printable Coupons

20. Who is doing it right? Gamification

21. Who is doing it right? Click-to-Buy

22. Illustrative case for CPG digital marketingWhat if Brand “doubled” traffic and engagement? margin +$15.5 million • Incremental annual margin from digital brand experiences that • create consumer engagement • deliver rich experiences • generate awareness • engender an emotional connection to brand This is a BIG opportunity to drive engagement with the brand!

23. 5 Key Takeaways • CPGs have significant potential to build engagement and preference • Most miss this opportunity because too few consumers visit their site • A few CPGs have online experiences that generate incremental sales • Requires fresh content and a clear call to action • Integration of online and in-store data needed to measure the impact of digital for CPGs

24. Future Research: Brand websites vs. social networks Social Media Brand Websites Fans Friends of Fans

25. Are Facebook fans responsive to the messaging? • Evaluate Facebook activity including commenting or “liking” a post • Look at online behavior of exposed fans: do they visit your website?

26. Are fans & friends of fans more valuable? • Look at offline spending of fans, friends of fans and non-fans • Compare fan spend to brand website spend Spend per Household for Brand X and the Category Brand X Friend of Fan Non Fan or Non Friends

27. Who is visiting your brand site and who are your Facebook fans? Compare the demographics of your website visitors and Facebook Fans to total Internet composition

28. Thank You! Accenture Ryan Krenn(414) 698-8523 ryan.t.krenn@accenture.com comScore Judy Bahary (312) 775-8836 JBahary@comscore.com dunnhumbyUSA John LaRocca (513) 632-0613 John.LaRocca@us.dunnhumby.com

29. Appendix

30. Web site features that drive traffic, engagement, and sales

31. Web site features that drive traffic, engagement, and sales