Turning a single product sample into a lifetime consumer

The CPG is traditionally defined by filling the top of the sales funnel with as many new consumers as possible. However, in recent years, this strategy is a proven race to the bottom. The true competitive advantage in an industry as high-stakes as CPG isn’t consumer acquisition - it’s customer retention, and cultivating a lifetime consumer.

A lifetime consumer is a brand advocate; a loyalist who delivers sustained revenue and invaluable word of mouth marketing. So, how can a brand transform a single, fleeting interaction - a product sample - into an invaluable asset? The answer is simple:

A data-driven strategy that moves beyond the simple freebie and creates a foundation of loyalty from day one.

The high cost of acquisition is a looming threat to CPG

According to a report by Bain & Company, increasing customer retention rates by just 5% can increase profits by 25% to 95%. In contrast, the cost to acquire a new customer continues to skyrocket. This economic reality forces brands to shift their focus from a one-time transaction, to the long-term customer relationship. A one-off sale is no longer enough to justify mounting marketing spend; brands must focus on creating sustainable relationships with consumers that generate value - and revenue - for a much longer period of time.

This is where traditional marketing falls short; consumers are skeptical, and while a digital ad may generate a click, it doesn’t necessarily equate to a lifetime consumer. A hyper-targeted digital product sample, however, is proven to lead to a loyal and lasting customer, making it uniquely positioned to bridge the gap between consumer skepticism and brand loyalty.

The moment a consumer requests a sample, they’re starting a conversation. SoPost’s technology turns their request for a product sample into a valuable opportunity to collect zero- and first-party data. A report by Gartner found that 89% of marketing leaders believe first-party data is critical to their long term success, emphasizing that this data isn’t a bonus, but a necessity for building personalized experiences that drive loyalty.

A product sample is only the beginning

The most critical step in creating a lifetime consumer is the post-sampling journey. The Sopost platform facilitates this by enabling brands to send follow up communications, such as personalized emails, exclusive offers and product recommendations, all based on the data collected during the sampling process. This direct one-to-one dialogue turns a one-time trial into an ongoing conversation, proving to the consumer that the brand values the relationship beyond a single purchase.

The ROI of a lifetime consumer

The ultimate measure of a product sample’s success is the long-term value it generates. Brands that leverage a data-driven sampling strategy can measure this impact directly:

• A study by McKinsey found that brands that use personalization and build direct relationships with customers see a 20% to 30% increase in customer loyalty and retention. Product sampling is the foundational tool for creating this direct relationship from the very first interaction.
• By cultivating a loyal base of lifetime consumers, brands can reduce their reliance on expensive customer acquisition strategies. This allows them to reallocate marketing spend towards high-value loyalty programs and brand-building initiatives.

Cultivating a lifetime consumer relationship strategy is an imperative for CPG

While product samples have long been a valuable tool in customer acquisition, it’s now becoming an increasingly important method for customer retention. Working with Sopost is proving to CPG brands globally that, in order to create a true lifetime consumer, brands need to leverage data, build trust and create a personalized relationship that endures beyond initial transactions.

Brands that have already made this fundamental shift are already seeing growth in their communities, which will fuel growth for years to come.

In our latest ebook, The ROI of a product sample: how data driven sampling is transforming CPG, we cover how we’re supporting brands in understanding the true, tangible, revenue boosting value of a hyper-targeted digital sampling strategy. Access your free copy below: