The Situation
BeverageCo* understood that digital channels present significant opportunities to companies and brands based on how they capture and fuel consumer behavior. Among the benefits, digital can:
- Generate insight into consumer behavior and feelings about specific brands
- Deepen relationships with two-way interactions on websites and social media that heighten brand awareness and customer service
- Create new e-commerce sales channels
However, the pace of disruption—fueled by the rapid emergence of new technologies—can make the digital world challenging to navigate. When BeverageCo sought to take advantage of digital, they had many isolated initiatives (such as online advertising and a corporate Facebook page) underway, but lacked traction in any of them. The company also lacked a cohesive vision that promoted collaboration between digital and the traditional corporate structure.
- BeverageCo's website traffic and sales conversion rates were low vs. competitors
- Social media presence was limited, with small communities relative to competitors
- Existing CRM tools failed to capture online interactions and insights that could help BeverageCo see their end consumers more holistically and engage them more frequently
Bain helped BeverageCo redefine both capabilities and organizational structures so that the entire company could benefit and grow from digital as it evolves.
Our Approach
Bain and the client team collaborated throughout the project, working initially to define BeverageCo's digital strategy and roadmap.
Next, the groups identified key questions to produce thorough analyses of the competitive landscape and existing internal digital strengths and weaknesses. Those analyses yielded insights that helped focus the agenda on three distinct areas of digital:
- Listening and monitoring
- Marketing and customer interactions
- E-commerce sales
Finally, the teams identified the enablers, such as capabilities, processes and tools, which would allow the company to achieve its vision in each area.
Our Recommendations
The teams recommended a number of key actions to help BeverageCo meet the digital challenge and harness the requisite opportunities:
- Double the number of resources dedicated to digital, creating a Chief Digital Officer who reports directly to the CEO
- Develop new digital assets and tools to interact with consumers, including web sites, social networks and apps and identify KPIs to inform progress
- Create an integrated global CRM that helps build direct relationships with end consumers, generates consumer insights and promotes brand loyalty
- Develop a scalable e-commerce strategy with significant sales potential, including search engine optimization (SEO), e-commerce and social strategies informed by Bain's omnichannel expertise
Bain and BeverageCo developed a scalable e-commerce strategy for a leading product with significant sales potential.
The Results
The digital strategy work armed BeverageCo with the information and skills they needed to catch and surpass their competitors in the digital space, while harnessing the habits of their consumers. The Bain and client team successfully:
- Developed new organizational capabilities and learning initiatives:
- Ensured digital is incorporated in company strategy across all markets and businesses
- Structured the organization to add key new digital roles and capabilities
- Designed processes and clear decision rights making use of Bain's RAPID® framework
- Delivered immediate gains in customer relationships with increased satisfaction, insights, targeting and feedback
- Set goals to deliver significant bottom line results in e-commerce sales while preventing profit pool destruction as a result of channel conflict
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.
