Recently, many brands have turned to direct-to-consumer (DTC) channels to connect more closely with customers. While DTC strategies exploded during the pandemic, some companies are now refining their approach, seeing DTC as just one part of a broader omnichannel strategy.
Mondelēz International is among these companies, using DTC channels to strengthen connections with its audience, test innovative ideas, and gather valuable data for its flagship product, Oreo.
Why DTC Matters for Oreo
Oreo’s DTC strategy is about more than just selling products online. Kamila DeMaria, Mondelēz’s Director and General Manager of DTC, explains that the DTC channel is a tool for learning from consumers.
It allows Oreo to test new products, marketing strategies, and pricing models. By gathering consumer insights, Oreo can continuously adapt its approach to meet customer needs.
Oreo strengthened its DTC capabilities this year by partnering with Goodness, a digital commerce agency. Together, they migrated Oreo’s online shop from Adobe’s Magento to Shopify, improving efficiency and the user experience.
As Ethan Martin, Strategy Director at Goodness, notes, “Shopify lets Oreo act more like a digital-native brand and compete at that level.”
Strengthening the Oreo ID Experience and Expanding Product Offerings
One of the key initiatives within Oreo’s DTC channel is OreoID, which lets customers personalize their Oreo cookies with custom designs, colors, and messages. Goodness worked with Oreo to make OreoID more user-friendly, creating a sleek, modern interface that resembles a dashboard.
The goal is to reduce customer service issues and improve conversion rates.
Oreo’s revamped e-commerce site now offers retail packs and limited-edition flavors, expanding what customers can buy directly.
This new offering allows Oreo to align brand campaigns with its DTC platform, integrate marketing initiatives more smoothly, and drive consumer engagement.
Leveraging DTC for Better Data and Personalization
Since partnering with Oreo, Goodness has focused on connecting Oreo’s DTC platform with ad, media, and customer relationship management (CRM) systems.
These integrations will eventually allow Oreo to send personalized communications that engage customers more meaningfully.
By capturing first-party and zero-party data—information voluntarily shared by consumers—Oreo can build a robust data infrastructure. This data is crucial for targeting consumers with personalized messages and training the company’s generative AI systems.
This AI infrastructure, supported by Accenture and Publicis Groupe, will allow Oreo to use customer data for more sophisticated audience insights and campaign strategies.
Enhancing Consumer Connections with Data and AI
The DTC channel is a critical part of Oreo’s overall data strategy. According to Hamish Stacy, Senior Manager and U.S. Consumer Data Lead for Oreo, building direct relationships with consumers through the DTC platform is fundamental to Oreo’s marketing strategy.
“Direct relationships with consumers,” Stacy explains, “set the foundation for developing a sustainable competitive advantage when applied to empathy at scale across our ecosystem.”
These consumer insights will be instrumental as Oreo prepares for a future with reduced access to third-party data. By capturing data at every interaction, Oreo can gain a deep understanding of its audience, helping it better engage with customers online and offline.
Conclusion
Oreo’s DTC platform is about selling cookies directly and building stronger relationships with customers through data and personalization.
By combining first-party data with cutting-edge AI tools, Oreo is paving the way for a data-driven future in consumer engagement, even as it remains a legacy brand in the consumer packaged goods space.
FAQs
What is Oreo ID, and how does it work?
OreoID is a personalization tool on Oreo’s DTC platform that lets customers customize their Oreos with colors, designs, and messages. This creates a fun, unique experience for consumers looking to add a personal touch to their Oreo purchases.
Why did Oreo switch its e-commerce platform to Shopify?
Oreo switched to Shopify to improve efficiency and create a more streamlined, user-friendly experience. The new platform also allows Oreo to operate more like a digitally native brand, giving it a competitive edge.
How does Oreo use data collected from its DTC platform?
Oreo uses first-party data collected through its DTC channel to understand consumer preferences and behaviors. This data supports personalized marketing and helps Oreo refine its product offerings and engagement tactics.
What is the role of generative AI in Oreo’s data strategy?
Generative AI, supported by Accenture and Publicis Groupe, helps Oreo make sense of its vast consumer data, enabling personalized insights and audience engagement. This technology supports Oreo’s goal of creating meaningful connections with customers.
How does Oreo’s DTC platform support its broader marketing strategy?
The DTC platform is part of Oreo’s omnichannel strategy. It allows the brand to test new products, gain direct feedback, and improve customer engagement. It complements Oreo’s retail presence by gathering data that informs broader marketing campaigns and innovations.