Shape-up for world of advertising as big data gathers momentum

While the term “big data” is relatively new in Thai market, it has gained momentum in the business world. Companies become more focused on big data because when it is being used right, it can support business decisions across every industry. 
dunnhumby has access to more than 70 per cent of FMCG retail customer data across the country, which allows the company to understand a diversified group of consumers - in order to identify who shoppers are, what they buy, why they buy and how they make their journey to purchase a product.
 “We need to focus on both the off-line and online journey starting from customers’ needs, getting to know the product, going through a brand decision making process, making a purchase decision and eventually purchasing a product,” said Teeradet Dumrongbhalasitr, head of Commercial, SE Asia Commercial, dunnhumby.
 “We’ve seen a dynamic shift in FMCG retailing in Thailand over recent years. The physical retail stores have been expanded, while online purchase channels have been emerging. The FMCG market is getting much more competitive with plenty of choices within the same product category and a variety of purchase channels offered to consumers. 
As a result, brand loyalists get tougher to retain, a new customer is harder to acquire and a customer can switch around many different brands. The customer journey to purchase a product doesn’t always go straight from their house to the point of purchase at the store anymore. 
These customers have a different journey to make their way to purchase a product and closing the deal with one customer is no longer always the same as another. 
Hence, the importance of understanding customers’ diversity by creating a targeted media strategy to connect with specific group of target customers across both off-line and online channels is essential in providing a seamless experience along their customer journey, he said.
Looking at FMCG customers’ purchase channels, our shoppers could be split into three main groups – in-store shoppers, online shoppers and multi-channel shoppers. Based on dunnhumby’s data analysis, it is found that the profile of each group of shoppers are different. 
The most active online shoppers are up-market shoppers, accounting for 63 per cent of online shoppers, whereby in-store shoppers are skewed towards middle-market shoppers, accounting for 53 per cent of in-store shoppers; and 56 per cent of multi-channel shoppers are majorly made up by up-market shoppers.
A “personalised” approach, implemented by a targeted media strategy, to fit in with the different characteristics of each shopper group is essential to resonate on each stage of their purchase journey; thus, creating strategic advertising through big data insights.
 dunnhumby believes that physical FMCG retail stores will continue to play vital part of Thai shoppers and that in-store media will strengthen the ability to influence shoppers to purchase a product. This is proven by 43 per cent more discount coupon redemption rate in multi-channel shoppers who have been influenced with both online and in-store media, as opposed to only one channel of advertising. 
This also proves that in-store media will strengthen the ability to influence your shoppers to purchase your product. 
At the same time, the increase of online grocery shopping in Thailand presents an opportunity for FMCG brands to connect with customer through a digital platform, but it is important to tailor your media strategy to who you are targeting with a cut-through understanding, starting from communication through to leading shoppers to purchase your product.
 “At the end of the day, the end goal for every advertiser is to retain their brand loyalists, acquiring new customers and winning back those who still switch around several brands. A personalised approach by working through big data will help advertisers to engage with target customers with the right content at the right media touchpoints. Hence, this will generate a significant impact to your advertising strategy. 
Moreover, big data is also a powerful measurement system to let you know if your advertising strategy works and what is next to move forward for brands. Thereby, our strategic advertising solution provide brands with the proper tools and competitive advantage to attract and retain customers for the long run,” said Teeradet.