Many FMCG manufacturers face the challenge that they can barely reach their customers anymore. Retailers always charge for the use of their marketing instruments, which show little effect. Retailers also don't share their customer data, which — especially in Switzerland — is in a frighteningly poor state. As a result, the FMCG manufacturer can only hope its products sell themselves. But there's a way out: a D2C strategy based on a CRM for FMCG.
In collaboration with CustomersX®, a direct-to-consumer strategy was developed and a CRM for FMCG successfully implemented. All customer data is now held in one system, and many manual activities are now covered by automations. Instead of depending on the individual retailers, the company can now cultivate direct customer relationships.
Customer Value-based Decision Making
Customer-centric Transformation
Co-Creation
Customer Management
We can't stress often enough that 70% of all CRM projects fail. The international FMCG manufacturer sells its products through several retailers in Switzerland. Its customers were both end consumers and food-service businesses. Over time, it became clear that the communication instruments offered by the retailers deliver only a very low ROI for the manufacturer, and that this would increasingly lead to price promotions — which had to be prevented. The Swiss unit of the international company was also very leanly staffed. The IT infrastructure was not up to date, and there were no competencies in CRM and automation. Two retailers had signalled willingness to share basic customer data, but there was scepticism about whether a D2C strategy could succeed in such an environment.
To implement a CRM for FMCG, we followed our four-step process based on our DTC approach. We used our CRM framework as the starting point to specify the individual tasks and dimensions. Because we are independent of any single software vendor, we can offer and implement the optimal software that fits our client exactly. Our CRM consulting is independent and tailored.
As a first step
the starting situation was analysed comprehensively. The focus was on the opportunities and risks of a D2C strategy against the backdrop of limited resources. It quickly emerged that automations could open up entirely new possibilities here. It also became clear that the retail partners' classic communication instruments have, and will have, too little effect. The company therefore needed to free itself from its dependence on the retailers. In several conversations with the individual retail partners, two were won over who were willing to share their customer data in the form of Excel files. The task was then to determine how this sometimes rather chaotic customer information could be loaded into a CRM system each year — on the premise that the effort is manageable and data quality can be ensured. The client also conducted a customer survey in order to better assess the financial requirements of a customer-relationship management. The customers' responses were quite positive, and the decision was made to implement a CRM for FMCG.
As a second step
the data architecture was defined. Using middleware, it was possible to transfer the customer data from the retailers into a simple customer-value model. This makes it possible for the FMCG manufacturer to filter, select and use customers according to their value contribution in a single system. The different data systematics of the two retailers were harmonised and missing information added. Finally, the retailers' existing customer data was cleaned. Here it was alarming to see how little the retailers value the quality of their customer data — a phenomenon that, unfortunately, can still be observed in many places.
As a third step
the different applications were presented. Systems such as SAP, Microsoft and Salesforce were ruled out in the first round, as they are too complex to handle and too expensive. Freshworks and Insightly didn't fully convince at the functional level. Zoho CRM and Zoho marketing automation were likewise too complex to use. Given the available resources, ActiveCampaign and HubSpot made the shortlist. Both systems focus on marketing automation but also offer basic CRM functionality. We hope it's clear that there is no single super-system — a trade-off has to be made. When clients have little of their own comprehensive CRM competency, the wrong system is too often chosen. In the end, the client chose ActiveCampaign. Its ease of use, combined with 60% lower licence costs than HubSpot, was convincing.
As a final step
the application was implemented. Our IT team built a middleware to load the Excel data into ActiveCampaign via API each year. Automations were set up and several templates created to simplify daily work. Finally, the staff were trained and the system handed over successfully.
In summary
a CRM for FMCG offers very great added value in terms of efficiency in internal and external processes. In terms of effectiveness, individualised web tracking and automated email sequences can significantly increase cross-selling and customer loyalty. It's worth mentioning that the project was also so successful because management and staff are characterised by an above-average level of customer centricity, which considerably simplified the necessary transformation.
*We take confidentiality towards our clients seriously. The name has been changed; the results are real.
Use automation and valuable data to create more value for your customers and your business.
