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In the last 18 months, the New York-headquartered company behind household names like Pepsi, Gatorade and Frito-Lay has increased its global first-party data records by 50% by accruing people’s email addresses in exchange for reward programs, letting it serve people more relevant messages, ultimately driving revenue. It wouldn’t share more specific numbers on its success.
PepsiCo has used a number of tactics to capture consented first-party data, including QR codes available on product packaging, in-store point of sale at registers and TVC ads.
In May of this year in the U.S., people shopping for PepsiCo products, such as Frito-Lay in-store, could scan a QR code found on the product packs and sign up for its Tasty Rewards program. Once signed up, people gain access to coupons, win sweepstakes and access recipes in exchange for sharing their email addresses.
“The strategy is rooted in understanding what the different consumer motivations are,” said Abhishek Jadon, global head of media partnerships, innovation, and marketing capabilities at PepsiCo, “and translate them into the right value exchange that would trigger a consumer willingness to connect with our brands.”
Google’s imminent death of third-party cookies has spurred consumer packaged goods (CPG) manufacturers such as PepsiCo, who conventionally depend on retailers for shopper data, to increasingly open direct avenues to foster strong consumer relationships.
For PepsiCo, its first-party data strategy has shifted from a one-off engagement or ad to building an ongoing approach across numerous markets.
Building a global audience
PepsiCo’s first-party data strategy spans geographical borders to tap into local culture. The company implemented over 50 campaign tests across 12 markets, including the U.S., Canada, Mexico and Turkey, all aimed to accrue first-party data through loyalty programs.
The company has established cross-functional teams and internal forums to test various aspects of consumer value exchange or acquisition methods across different regions in order to refine its strategy.
“We are on a journey that will take time,” said Jadon. “The advocacy, support, and consistency around [first-party data] is the bigger investment PepsiCo is making.”
This summer in Turkey, the company tapped into the country’s football fandom to run a survey leading up to the 2023 UEFA Champions League Final in June to better understand which fans are true football lovers in exchange for points to redeem on gifts and rewards.
At the end of last year in Australia, PepsiCo partnered with a popular local cinema to offer discounted tickets when people signed up for their engagement program (SnackBack).
Naturally, different regions exhibit different behaviors. In the U.S., customers exhibited an interest in discovering new recipes and flavors, leading PepsiCo to offer its Tasty Rewards campaign. While in Turkey, PepsiCo observed tech-savvy customers quick to respond to immediate incentives.
“We are also looking into communication to drive quick conversion,” said Jadon. For instance, those interested in holiday recipes are directed to its recipe website, and subsequently redirected to PepsiCo’s direct-to-consumer site, snacks.com, to make product purchases related to the recipes.
In a separate campaign in the U.S., Rockstar Energy introduced a flavor discovery feature aimed at delivering tailor-made recommendations based on people’s preferences. This is accessible on the website and in various places, such as embedded sections and the top site banner. By responding to a brief set of questions and offering an email address, people can discover new Rockstar Energy flavor that best suits their tastes.
This initiative has led to higher engagement rates and conversions for Rockstar Energy products and capturing flavor preferences, according to Jadon. It wouldn’t share specific details.
Finding new audiences on YouTube
PepsiCo has accelerated its first-party strategy with Google since 2019 to help collect first-party data via its tools to buy, measure and optimize digital media and customer experiences in one place. The brand has integrated the Google Marketing Platform.
“It has driven growth in terms of increased sales lift and also better media engagement with our consumers,” said Jadon.
PepsiCo was also among the early adopters of Google’s Audience Expansion tool, which let it expand the reach of its YouTube ad campaigns via machine learning to find new, similar audiences.
“We were able to unlock two times ad recall compared to business as usual for upper-funnel campaigns,” said Jadon.
