NEWS
May 09, 2002
CPG Marketers Can Find Loyalty Online

Jupiter Media Metrix reports that consumer packaged goods (CPG) marketers can best use their digital marketing dollars and Web sites to identify and target their most loyal customers. In segmenting online adults by their attitudes toward brands, pricing and shopping, Jupiter analysts distinguished the two most desirable segments for CPG marketers: "Brand Bonders" (25% of U.S. online adult population) who believe the brands they use reflect their personality; and, "Brand Loyalists" (21%) who are generally unwilling to try new brands once they have found the ones they like. Although both groups are relatively affluent, "Brand Bonders" are mostly female (58%) and relatively young, while "Brand Loyalists" tend to skew older and male (60%).

Three other, yet less influential, CPG customer segments Jupiter analysts identified include: "Shopophobes" who tend to dislike shopping, "Bargain Hunters" who search for deals online, and "Skeptics" who like deals, but generally do not believe in brands.

"CPG manufacturers need to start thinking about the Internet as the channel to identify their best, most loyal customers," says David Card, Jupiter vice president and research fellow. "They can best use their own Web sites to segment customer sets, not for couponing or information dispersal."

Through attitudinal analysis, Jupiter has found that "Brand Bonders" are very busy consumers, and a relatively large number of them consider the Internet to be their favorite entertainment. Of the five segments, the "Brand Bonder" group includes the largest percentage (49%) of consumers who believe the Internet has made them more up to date on the news. Jupiter analysts advise CPG companies to take note of this statistic because it suggests "Brand Bonders" use the Internet to gain knowledge and advantage. Web sites that enable online bill payment or couponing and sites dedicated to movies are efficient ways to reach "Brand Bonders."

The "Brand Loyalist" segment contains the highest proportion of men. Almost two-thirds of these consumers are over age 35, and 40% are over 45. They also comprise the most affluent segment: One-third have a household income over $75,000, and 18% have a household income over $100,000. A November 2001 Jupiter Consumer Survey reveals that over 80% of "Brand Loyalists" think consumers generally get what they pay for - and almost 50% equate quality with price. Although "Brand Loyalists" are hard to reach both online and offline, Jupiter analysts believe these customers are worth holding onto once they've bonded to a brand because they aren't particularly price sensitive and they won't shop around. Sports sites, online brokerages and adult content sites are effective ways to target "Brand Loyalists."