Finding ways to grow sales has never been tougher. Despite obstacles like robust competition, a fragmented media environment and growing piles of data, a handful of companies are still finding growth opportunities within their existing customer bases. In fact, by identifying a category’s ‘Super Consumers’ – those consumers that spend a lot and engage a lot, companies are tailoring their marketing and sales efforts to boost incremental sales—even when category sales are flat.
According to Eddie Yoon, Principal at the Cambridge Group, finding and delighting your Super Consumers is a way of growing your business without any more complexity. “The opportunity is right there, and companies can tap into their Super Consumers using the data and information they already have and are working with,” says Yoon.
SUPER CONSUMERS ARE THE SWEET SPOT BETWEEN THOSE THAT SPEND A LOT AND THOSE THAT CARE A LOT.
Super Consumers sit at the intersection of heavy users and highly involved consumers, which means they’re both emotionally and economically involved in the category.
According to Nielsen research, this group of consumers in the US account for 10 percent of a category’s customers and anywhere from 30 to 70 percent of a brand’s sales. They represent a key opportunity for brands looking for growth when growth is elusive.
Super Consumers are just as lucrative in the Australian market. Greg Dring, Nielsen’s Head of Demand Strategy for the Pacific says, “Looking across all FMCG categories in Australia we found there is a group of consumers in every category that spend a lot and care a lot. On average, they make up 10-15 percent of households and more than double that in sales. They have a hidden appetite to buy more even in the most unlikely product categories.”
“When companies prioritize these Super Consumers they see unprecedented growth, with a direct correlation between brand share of category dollars and brand share of Super Consumer spend,” says Dring.
By flipping the lens to look at Super Consumers, rather than the more ‘traditionally used’ category users, lapsed users or switchers, companies open up a whole slew of possibilities and insights that hadn’t previously been recognised to drive growth.
CASE EXAMPLE: CHEESY LOVE MELTS HEARTS OF KRAFT’S SUPER CONSUMERS
Just over a year ago, Nielsen, through its wholly-owned subsidiary The Cambridge Group, was engaged by Kraft’s senior leadership to help rejuvenate growth for its cheese/dairy business unit.. Velveeta, a processed, unrefrigerated ‘cheese food’, was experiencing flat to declining sales as demand shifted towards natural and organic non processed cheeses.
1. Identifying the Super Consumer:
By recognising a strong Super Consumer base that hadn’t been previously tapped into – the ‘hot melted cheese Super Consumer’, Velveeta cheese was identified as a growth opportunity. This Super Consumer represented 10 percent of Velveeta’s consumers, but drove 30-40 percent of sales and more than 50 percent of profit. Their unifying characteristic? A love and passion for the product and a diverse range of uses for it.
2. Innovating through the lens of the Super Consumer:
Those Super Consumers had unmet needs – they craved more usage inspiration for their beloved cheese. By viewing Velveeta in the broader melted cheese category rather than the previous cheese loaf, Kraft was able to reinvent the way Velveeta could be used, which informed product development. Recently launched products such as refrigerated Velveeta slices and refrigerated shredded Velveeta had performed surprisingly strongly, which took on incremental importance in light of the valuable Super Consumer strategy. The range of new product launches as a result of these insights delivered more than $100 million in sales for Kraft so far.
3. Retail optimisation:
Activating against the Super Consumer also drove in-store decision making. Based on Super Consumer insights, some retail partners began moving Velveeta to the refrigerated dairy aisle, where products have a much higher rate of sales.
Not only did Velveeta see a notable uplift in brand growth – ahead of the competition and category, but just as importantly managers believe they have a found a viable growth strategy.
THE SUPER CONSUMER IN ONE CATEGORY IS THE SUPER CONSUMER IN AT LEAST NINE OTHER CATEGORIES
When manufacturers and retailers work together to activate the super consumer; the benefits go beyond just the category a brand plays in. There is clear insight into action that the retailer can take to win across at least nine other categories.
This is incredibly powerful for mega brands; brands that span multiple categories (e.g. Nestle, Dove, Huggies and Heinz). For these brands, rather than having a different target consumer for every category, companies can identify a single Super Consumer that cares a lot and spends a lot across all of their categories. Finding and delighting this Super Consumer enables a mega brand to effectively develop loyalty strategies and optimise growth across not just one, but multiple categories they play in.
Activating against the group of consumers who are already engaged and listening can be the key to unlocking a layer of growth that might otherwise remain elusive.
These insights were presented live on stage at Nielsen’s Consumer 360 conference (July 31 – Aug. 1, Fairmont Resort, Blue Mountains). Eddie Yoon, Principal at the Cambridge Group, presented his views on the big challenges for brands in the future. Does globalisation help or hinder brand development? How do we find the consumers and audiences for existing brands? And who is doing a good job of creating big outcomes for their brands?
- Nielsen TV: On the Hunt for Super Consumers, March 31, 2014