Seth Hillstrom (SH):

Good Morning and on behalf of Beverage Marketing Association, thank you to everyone for taking some time to participate in “The Future of CPG Marketing: The Ultimate Promise of Basket Level Data”, which will be hosted by myself and lead by the brilliant mind of Bonin Bough. For anyone new to BMA’s Global Interviews series…these discussions are intended to be an open forum for ideas an collaboration. Please ask questions, add insights, and connect with your peers. Alright! Here’s a man who needs little introduction. If you’re a serious marketer, it’s likely you’ve been inspired by him directly. And He’s currently the host of CNBC’s Cleveland Hustles with LeBron James. Thanks so much for joining us today Bonin!

 

Bonin Bough (BB):

Hey everyone let’s start chatting!

 

SH:

Facing ever-heightening cost pressure from retailers (who are also getting squeezed by budget conscious consumers and the need for brick and mortar consolidation), it’s no secret that beverage/CPG companies are facing stagnant or stagnating growth. The consensus seems to be that the average growth for large manufacturers across the industry is under 0.5%. That said, the best performing companies are finding ways to exceed those expectations – something you did incredibly well at Mondelez International. Tell me how you have been able to so effectively uncover the “secret” pockets of growth and get your resources behind them.

BB:

Wow great question could not have asked a better one myself and actually something I have recently been spending a ton of time discussing. First I think that the Chief Growth Officer role will be one of the most important roles in CPG companies moving forward. But I think they will need to really understand how to digitize the organization. Beyond just communications but the actual guts like product development and insights, supply chain, etc… Then they need to learn how to create new go to market strategies like DTC, subscription, etc… The use of data will be huge and new channels all of these qwill began to unloick new growth models and opportunities. The question will be how do move an org quickly. I have ideas but that will be the ultimate challange.

Only person I have ever seen been successful with digital transformation has been Zucks when he moved facebook from not being a mobile company to leading. By issuing a simple edict which was don’t show me a new feature unless its on mobile.

 

SH:

I believe that’s an incredibly accurate characterization of how these companies push forward in today’s climate. And we all know Zuck had the right idea about mobile-only powering Facebook‘s revolution. So you talk about data really powering digital transformation in a mobile world. What kinds of data and insights allow us to best understand our customers and consumers and drive this real change? In particular, where does basket-level data fit into the puzzle?

 

BB:

Glad you asked. The reality is most organizations are data poor but new organizations like Dollar Shave and Nature Box are data rich. So the question becomes how do you capture data as an older org. A long time ago I tried to buy a platform called Endorse which was one of the first receipt scanning companies. I couldn’t get it done but the reason I wanted it was because if I could turn it into the standard and own it I could have basket level data. Which is huge!

Recently I came across a similar platform and there are a few out their now that have become big but MobiSave is the only one that provides true access for data and are working with manufacturers to offer full product cost rebates for downloads.

So if your a marketer you can work with MobiSave and offer free product to anyone who downloads the app. Just to be clear that’s insane.

 

SH:

I’m jumping back to this post to send anyone who wants more info to the video you recently did….it can be found here: http://ebevseries.com
And it IS insane.

 

BB:

But from a more macro level. What do we believe a persons data is worth? Imagine if you told anyone who wanted your product to just text you to get free product and answer a few questions. Would that be worth giving away a free pack of 4 dollar cookies.

 

SH:

This really opens the gates to a very interesting discussion about consumers “taking back” the value of their attention. And I think most people would gladly share some information about themselves for free cookies (or something else they liked)…I know I would!

 

BB:

Of course they would. You can create very valuable experiences that capture very valuable data from the consumer.

 

SH:

Brilliant and powerful way to get the data you need while ensuring your consumer feels good about their interaction your brand. Especially if they got it free! Or some other great value with it.

 

BB:

But nobody is really playing to win.

SH:

…Not surprising in the slightest that you saw what was coming years before digital rebating took hold with consumers. So much in this light…Strategic customer partnerships are certainly one way for manufacturers to drive growth in the current climate. That said, every brand I speak to has to fight tooth-and-nail to unlock just a sliver of the goldmine that is basket level data. Brands can now leverage these retailer agnostic platforms, such as MobiSave, to fill in these gaps – not only to generate growth, but also to make themselves a better partner to their customers. What do you think the key is to a harmonious and productive dynamic between brands, retailers, and these types of retail technologies? How do we make this a win-win-win?

 

BB:

I think as retail becomes more and more pressured they will seek even closer relationships with CPG’s so that might be the beginning but the reality is CPG companies have to figure out ways on their own to get at the data they need and begin to place real value on it.

 

SH:

So essentially you’re saying retailers need to accept that their suppliers need to find better ways to understand their consumers and realize that this is good for everyone?

 

BB:

Or stop charging so much but essentially YES.

 

SH:

Okay…So as a world-renowned speaker (Bonin will blow your hair back if you haven’t had the pleasure!), Author of Txt Me: Your Phone Has Changed Your Life. Let’s Talk About It”, Former leader of multiple of the top 10 CPG manufacturers in the world, and now host of CNBC’s Cleveland Hustles with Lebron James…You’re a pretty busy guy. I know we’ve gotten into this a bit already but I feel like this is a good time to tell us why it was so important for you to take an advisor role at MobiSave and why you believe so much in what they’re doing?

 

BB:

I took it on because I love the fact that they were driving data sharing and also were willing to do the rebate approach which I think provides huge value for CPG companies.

Look at the end of the day I was on the other side and understand what is needed. So I try and work with solutions that really meet those needs and do it in a win win sittuation. This opportunity is a no brainer.

 

SH:

That’s a pretty good reason! I can imagine as a former brand leader, you really appreciated martech providers who are willing to work with you to prove themselves prior to asking you to break out the checkbook? Speaking of advising small businesses, something we know you are very passionate about, you’re working with some firms in messaging and are a big believer the power and importance of this space. Give us a peek of what’s happening in messaging and any relevant artificial intelligence by 2020 and beyond.

 

BB:

Wow not sure we have enough time for a peak but basically there is a revolution happening and no one is taking notice in fact I’m on LinkedIn messaging right now enough said!!!!

 

SH:

Ironically, so am I! And the experience is smoother and more convenient for me

Thanks Bonin for taking the time and sharing your insights today.

 

BB:

Thanks Seth.

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