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Oracle Customer Success — Dr Pepper

Dr Pepper

Dr Pepper Success: How Asking Smart Questions About Its Fans Led to All-New Actionable Insights for Campaign Optimization

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The DLX ROI analysis helped us focus and target the most valuable consumers for our brand’s growth thereby making our overall spend within Facebook much more efficient.

— Richard Lyons, Manager – Interactive & Emerging Media, Dr Pepper

Take a look at the measurement results Datalogix uncovered for Dr Pepper, a big brand taking a big bet on Facebook and the effectiveness of its social media strategy. The insights revealed in this study are the results of this brand’s willingness to explore how getting a closer look at fan behavior can answer important questions about digital marketing’s potential to drive brand sales.
  • Challange: Dr Pepper asks, “Who are our fans?”
    A model for how a big brand can stay nimble to effectively engage with a massive fan base, Dr Pepper’s fan acquisition strategy was one of steady, organic growth: 2-3x/day Facebook posts were photos, polls, tips – each a lightweight, conversational short designed to keep fans talking about the beverage.
    The brand’s digital team turned to Datalogix to measure how this strategy was working, and if it was an effective way to drive in-store sales.
  • Insights Audience analysis reveals Dr Pepper fans are some of its best customers
    The DLX Audience Analysis proved what the Dr Pepper marketing team hoped was true: that Dr Pepper fans were among its top buyers, not just consumers who “liked” the product in the hopes of receiving coupons, freebies or prizes. Fans — even recent ones — made more buying trips, bought more each trip, and spent more overall than non-fans. It proved that early-adopter fans are the highest spenders in store yet recent fans have been equally as valuable.
     
    “The numbers confirmed what we thought we knew: that Dr Pepper’s organic fan acquisition strategy was an effective way to acquire loyal buyers, and that Facebook was an effective channel to engage with them,” said Richard Lyons, manager interactive & emerging media, Dr Pepper.
     
    Brand messaging was especially relevant to Dr Pepper’s 2 key audiences — Millennials 29 and under and shopper moms with teens—evident by the over indexing in both fan and non-fan ranges of those demographics.
  • Insights: Who are Dr Pepper’s fans?
    • Dr Pepper fans over-index in two key groups: Millennials 29 and under, and shopper moms with teens
    • Very High Spend fans tend to have higher Incomes than fans overall ($100K+)
    • Increased fan spend was driven by increased trip frequency not by increased basket size during a trip
  • How does fan shopper behavior differ from non-fan behavior?
    • Dr Pepper fans were 54% more active than non-fans from a sales perspective
    • The brand’s “getting on the shopping list” strategy worked as fans made 34% more shopping trips per year than non-fans
    • Consumers who were fans for more than a year spent 39% more annually than non-fans
    • Very High Spenders (by spending quartile) spent 84% more than the next level down High Spenders and demonstrated that Facebook posts enable brands to stay top of mind for their best consumers
  • How are fans contributing to brand growth?
    • Very High Spend fans spent 14.3% more on Dr Pepper 9 months after liking the brand than non-fans, which demonstrates the brand’s engagement • strategy is effective in getting loyal buyers to buy more
    • Fans only make up 5% of the brand’s consumer base, giving Dr Pepper a huge opportunity to expand their fan base among their most valuable consumers
    • Fans generated 7x sales lift vs. non-fans another important reason to invest in building a strong fan base
  • Optimization: Using insights to drive “what’s next” campaigns for a one-of-a-kind brand
    Now that Dr Pepper had a 360-degree perspective on who its fans were, its marketing team used these fan shopper behaviors to target new buyers on the front end of its campaigns.
     
    “Now we knew we had acquired the right fans. The DLX Audience Analysis became the basis for our targeting blueprint,” states Lyons.
  • Case Study: Dr Pepper fuels buyer-acquisition campaign with DLX CPG targeting
    1.0: Drive brand awareness with Managed Custom Audiences fueled by DLX CPG data.
     
    Dr Pepper needed to drive brand awareness and increase consumption between current brand buyers and heavy carbonated beverage buyers on Facebook. DLX created a Managed Custom Audience of heavy carbonated soft-drink buyers and light Dr Pepper buyers to reach shoppers on the social media platform.
  • Results
    • 1.5% lift in sales and 1.9% in higher trips
    • 15% of the audience purchased a Dr Pepper product
    • 7x Fans generated 7x sales lift vs. non-fans
     
    2.0: Acquire new fans with DLX Custom.
     
    Using DLX CPG data, DLX identified 3.5 million and Very High Spenders of Dr Pepper products not currently Facebook fans. Now, Dr Pepper implemented an acquisition strategy to go after these extremely valuable customers.
  • Question Everything with DLX ROI
    • Learn how your fans and followers prefer to engage with your brand with DLX ROI social media measurement solutions:
    • Uncover specific audience attributes
    • Build your fan base to drive in-store sales
    • Target consumers accurately so they choose your brand over your competitors
    • Place a dollar value on your brand’s fan base
    • Rank customers and fans according to verified purchasing behaviors
    • Precisely measure how Facebook campaigns are driving in-store sales
     
    “Marketers have two key questions: what is the ROI of my advertising investment and how do I run better campaigns? Our collaboration with Datalogix answers these questions by providing marketers with deep insights into both the offline sales impact of their advertising and how to continually improve the performance of campaigns,” said Brad Smallwood, head of measurement & pricing, Facebook.

About Dr Pepper

Headquarters

 
Dallas, Texas, United States
Published:  Apr 15, 2015