Clorox Targets 50% of Media Spend on 1-to-1 Personalization by 2030
The Clorox Co. aims to allocate half of its media spend toward 1-to-1 consumer personalization within the next five years, a lofty goal supported by years of digital investments.
Sixty percent of the company’s media spending currently features some type of personalization for consumers, Clorox CEO Linda Rendle shared during the Consumer Analyst Group of New York (CAGNY) investors conference last week.
The company has data records for 100 million known users, a milestone it reached a year earlier than originally planned, she said.
“We're ready for 1-to-1 communication, which is something, frankly, we never thought we could do when we went on this personalization journey,” Rendle said. “We didn't think we would have the scale or the efficiency to be able to do it.”
See also: Learn how Clorox took a look at price fluctuations with Kroger
Whereas the company can currently target broader demographics, such as moms providing after-school snacks for their kids, it will soon serve content targeting a specific person as they move throughout their day.
Rendle gave the example of “Carla,” a mom with a toddler and two teens. “She's trying to ensure that they have healthy snacks, and she's also on a health journey herself. We can serve her content from Hidden Valley that addresses those very specific needs just for Carla,” said Rendle.
This content would differ for “Steve,” a college student who moved from Texas to Wisconsin. Not only can they serve content with University of Wisconsin Badgers jerseys, but they’ll learn if he orders pizza on Wednesday nights and when finals are so they can support with late-night snacks, she said.
“This is the future of our marketing, 1-to-1, and we set a big goal. In the next five years, we want 50% of our media spending to be 1-to-1 — a massive leap forward enabling us to build even better and trusted relationships with our consumers,” said Rendle.
Incremental Personalization Growth
Like many consumer goods brands, Clorox is adjusting to the collapse of the traditional marketing funnel, in which driving interest, purchase, and loyalty has compressed in some cases to a single point — “where people are doing all of that at once and in seconds,” said Rendle.
Its Cherry Blossom execution for pink Glad bags is an example of this adjustment, as the company serves ads tying the benefits of the scented trash bags to other product searches.
The campaign, now in its third year, has recorded 43% sales growth and is growing, according to Clorox’s presentation.
Related: Clorox’s Bailey Conlon talked personalization at last year’s Retail Media Summit
The company’s Burt’s Bees brand also worked with influencers during the holiday season to create curated gifts the influencers could recommend to their followers. The content was immediately shoppable and provided Clorox with insights into which messaging and packages resonated, enabling it to pivot other media and retail executions, said Rendle.
It’s also created custom digital content with retailers that tapped into local activities. For example, bespoke experiences targeting college tailgating fans and their alma maters drove increased merchandising lifts for Kingsford barbecue products at Walmart and Sam’s Club stores, according to Rendle.
