FanFinders

Why building pre-purchase

brand loyalty works

FanFinders’ CCO Adam Gillett discusses why for brands and retailers in the baby sector, acquiring customers way before the purchase point and at the right life stage means better cost-effi ciency and longer-term value.

The ‘pre-customer acquisition’ space isn’t new, but it has gathered more momentum during the pandemic.

That’s because more and more businesses are looking to intercept people prior to them becoming a customer, add them to their database and then own the relationship from beginning to end using the likes of email programmes, discount codes and relevant product information at key buying points.

So they can market to them and build up their sales as early in the parenting journey as is relevant to their brand.

Why are they doing this? Well that’s because the reality is every single digital marketing funnel is the same basic shape, with the wider point at the top where customers fi rst hear about you and then the narrowest point at the bottom where they buy from you.

And it’s in this funnel that we fi nd an inverse relationship between scale and cost appearing for brands currently using the likes of Facebook and Google for acquisition, which we covered back in the February issue.

If a company is going on Facebook and spending £20 per new customer acquired, they’re gauging success by the end point of the funnel and what the process costs ‘ cost per customer’ or ‘CPA’. Meanwhile, from Facebook’s perspective, it’s what are they charging ‘per 1000 views’, which is the awareness stage right at the top of the funnel.

The gist is that as you scale, metrics such as cost per customer and cost per lead get more expensive. Soon, this dropdown spreads into the entire funnel and everything falls out of sync. All of a sudden, you’re relying on lifetime value and repeat purchases to keep you profi table.

By inserting yourself into life stages correctly and before these purchase points, brands can “ communicate to build loyalty and goodwill, using helpful communication that isn’t pushing sales and establish brand equity with their future customer base. “ Pre-purchase loyalty in the baby market

We aim to insert brands in the midpoint of the funnel by creating the awareness but only charging based on a mid-funnel conversion metric like ‘cost per lead’ or ‘cost per email address’. We build sign-up pathways that let our partners communicate with parents at the right time to then convert them into loyal customers.

The reason this is so important in the baby market is because of the short lifetime value.

The fi rst point for connecting with parents to drive sales is around 6-7 months into pregnancy, when they start thinking about pushchairs, car seats, hospital bags and other essential nursery items. Or, if you’re a baby food company

for example, it’s before children go through weaning at around 4 months.

By inserting yourself into life stages correctly and before these purchase points, brands can communicate to build loyalty and goodwill, using helpful communication that isn’t pushing sales and establish brand equity with their future customer base.

Parents make purchasing decisions early. For nappy/diaper companies, parents want them in their hospital bag. For baby-specific retailers, they want to be talking to them before 22 weeks about what pushchair and car seat they want before their baby arrives.

Communicating as early as possible and getting this relevant data is where we specialise.

The real value of targeted marketing

In the baby market specifically, what you’re looking for as a brand is to connect with people and this targeting is probably more important than in any other sector. The reason: for most brands, the window is only from that pre-pregnancy stage through to around 2/3 years old.

Any loyalty you build up through the stages where parents need your products can extend through to when they have more choices available. If you’re interrupting people in those later life stages for the first time, then you’ve already missed out on a certain amount of purchase value.

Short-term thinking, just looking for the instant sale or what you need right ‘now’, will mean not getting past the smaller picture.

Focusing a program around how fast you can get new customers will eventually mean a constant uphill battle against scale and not owning your own customer relationships up until the point of purchase.

Instead, you should begin building brand awareness and loyalty way before a parent is anywhere near needing your product. Otherwise, you might miss out on a crucial 3 months and because babies grow so fast, that’s up to 25% of the lifetime value of that customer gone.

If you can acquire people into a funnel that is about targeting with specific products, tailored messaging and email campaigns for specific life stages, everything can interconnect and it becomes one big picture.

This is how you influence the first purchase, take control of the cycle and own the entire journey.

FanFinders is a performance marketing and consumer insight company that connects brands with parents who want what they have to offer via Your Baby Club. Download their free 21 insights report at fanfinders.com/insights.

FanFinders is a performance marketing and consumer insight company that connects brands with parents who want what they have to offer via Your Baby Club. The ‘21 Insights’ report will be available soon to download at fanfinders.com/insights.

For more information on FanFinders and the consumer insight they can offer, call: 0203 808 3011 or visit www.fanfinders.com

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Talking tech

Nursery Today talks tech with Angelcare UK’s CEO, Julie Ebrey.

How is technology playing a role in nursery products?

Technology is encroaching in every aspect of our day to day lives. Our children are faced with it every day in all that they do. They will never remember a time without it and nursery products are no different in this.

By adding a tech aspect does this give parents a stronger level of peace of mind?

Not necessarily, sometimes this just provides just one more aspect of childcare to become anxious about or over complicate things.

We believe what gives the consumer a true sense of support from a particular product is faith in the brand and that their technical know-how offers features that really make a difference to the parenting situation. With us, that’s primarily the movement sensor pad.

Do you feel that tech is being added to some nursery products as a gimmick rather than a solid purpose?

There is a degree of that. Some people will always want something because its ‘new’ but it’s not necessarily adding a benefit to parenting.

Although we have been selling Angelcare monitors across the globe We have been selling Angelcare monitors across the globe for well over 20 years, we have ensured they have stayed up to date with the current technologies available while focusing on our key product features.

for well over 20 years, we have ensured they have stayed up to date with the current technologies available while current technologies available while focusing on our key product features. focusing on our key product features.

It is important for us to remain loyal to It is important for us to remain loyal to our brand heritage since that’s what we our brand heritage since that’s what we are known for and we have a loyal consumer and retail following because of our consistency. Some technology can be so complicated that it can overwhelm parents at a really sensitive time in their journey. Some products that are their journey. Some products that are difficult to set up, or that have other difficult to set up, or that have other parts that need to be used in conjunction, can add to parental anxiety. Parents just want something they can rely on and set up with the flick of a button. Because of this we have really concentrated on ensuring our monitors are easy to set up with clear instructions.

Are Apps playing a stronger role within nursery products?

For sure, especially around the areas of monitoring. It’s great having your phone with the ability to manage your home or nursery but there is always the underlying fear of hackers, or the wifi or phone signal going down. We’ve steered away from apps because of this.

Our monitors use digital technology with a choice of 19 channels to ensure they don’t confl ict with anyone nearby. Does this type of enhancement also appeal to dads?

Dad’s love tech; what more can we say, however Mums prefer to know that the product works and gives them the reassurance they want. They want the product to be stylish and fit in the with décor too.

Are we experiencing a greater level of innovation when we look at products that also have enhanced features?

Innovation is the essence of product development, but we have to be mindful that we don’t undermine the skills of parenting.

We believe that no product should be used as alternative to getting to know your baby and your baby’s cues. Fundamentally the relationship between parent and child is so strong that a good product only serves to embellish and support that relationship rather than replace it.

How do you convey features and use to your retailers for demonstration of product?

We love the idea of interactive videos to show how our products perform in real settings. This allows the consumer to understand fully the features of the product when they are making their purchasing decisions.

Monitoring movement

Angelcare Baby Movement Monitors, all of the tech, none of the fuss

The Angelcare range of Baby Movement Monitors provide a simple, smart and secure way of caring for your new life from a trusted brand with over 20 years’ experience in creating the best baby products. Easy to set up, once the movement sensor pad is installed under the mattress, the precise design means the alarm only sounds if no

movement is detected after 20 seconds. There’s nothing to attach to baby to disturb their sleep and as it doesn’t use the wi-fi network, the signal will always be secure and reliable even if the wi-fi isn’t. No complicated readings or unnecessary information overload, just an easy to use baby movement monitor. www.angelcarebaby.com

For secure bedtimes, we keep life simple

Baby Movement Monitors with Video and Sound

For millions of babies worldwide Angelcare have been supporting parents with our award-winning, tried and tested products for over 20 years. e original movement monitor in Europe, we’re still a firm favourite with parents and retailers today

Features:

Tracks Movements

Constantly monitors baby, alarm only sounds if there have been no movements for 20 seconds Smart Design

No need for wifi or the internet, tracks baby safely and securely

Non-Contact

e wireless Movement Sensor pad is placed safely under the mattress, nothing touches baby or disturbs their sleep Simple To Install & Use

No fuss to set up, easy and intuitive to use

Simple. Smart. Secure.

angelcarebaby.com