Startup To Scale

193. Digital Product Sampling 201: Advanced Strategies

Foodbevy Season 1 Episode 193

The intersection of digital and retail marketing is made easier with digital sampling. Now you can use trackable digital marketing tactics to drive customers to purchase in store, while simultaneously intercepting customers in-store through demos and adding them to your digital marketing and loyalty program. Join me for a conversation on how to use advanced digital product sampling and rebate programs to drive sales and velocity for your brand.

We discuss:

  • The Key Opportunities for Using Digital Sampling
  • Specific Tactics for Using Digital Rebates to Have the Best ROI

I’m Joined by Justin Lutz, CEO of Sampoll, a digital sampling and rebate company for emerging CPG brands.

Sampoll offers a “Bring Your Own Marketing” plan designed to help brands acquire new customers and boost sales velocity. Deploy targeted retail focused (or DTC) digital product trial offers in just a few clicks! For $399/month, brands receive 1,000 signups to support their marketing initiatives. Additionally, as a limited-time offer, the first 10 customers can get the first month for just $199—50% off the regular price. This plan provides an affordable, efficient way to expand your customer base and drive growth.

Startup to Scale is a podcast by Foodbevy, an online community to connect emerging food, beverage, and CPG founders to great resources and partners to grow their business. Visit us at Foodbevy.com to learn about becoming a member or an industry partner today.

Digital Product Sampling 201: Advanced Strategies

Jordan Buckner: [00:00:00] One of the biggest questions that I have founders ask me is how to drive velocity in retail stores and how to get new people to try your product. And both of those two can be very challenging and very expensive, but there are some really effective ways of going about doing so. Today I want to talk through digital product sampling and digital rebates and really talk through some advanced strategies on use cases and when are the best opportunities to take advantage of them.

And then also what are some of the tactics that you can do to make sure they're most effective and driving the ROI that you're looking for. For this conversation, I've invited Justin Lutz, who is the co founder and CEO of Sampoll, to have this conversation because he's deep into this and talking and setting up programs with founders.

Justin, welcome. 

Justin Lutz: Thanks for having me. Glad to be here. 

Jordan Buckner: So maybe as a quick intro to things, tell me a little bit around, like, just explain what is possible with digital sampling and digital rebate programs.

Justin Lutz: Yeah. I mean, how much time do you have? We, so much, right? But [00:01:00] the core tenets here is, It's just hyper scalable.

You can reach anyone, anywhere, anytime. Way more cost effective than traditional models. I'll be, I will say, caveat that by saying like, you know, you definitely, we know that in store demos still work and, you know, are kind of the gold standard. But when you can couple those with a program like ours that's when you can really have that hockey stick moment from an awareness and velocity standpoint.

And then making sure that you understand who your customers are you know, at scale and you have data now that's actionable. Cool. And you can use that data to inform future marketing campaigns and, you know, , your strategies and spend going forward. 

Jordan Buckner: So I know there's a couple of different ways of going about doing sampling , and rebates coupons, right?

You can sell a program where you're actually just sending free product , to potential consumers and you're like shipping it directly to their home. There was also a model where you're essentially sending them into a retail store to purchase product there and then offering like a digital rebate or sometimes a manufacturer coupon or something to like [00:02:00] scan in store.

And then usually there's kind of software to, to facilitate that. Right. 

Justin Lutz: Right. Yeah. So when we started Sampoll, we explored all of the models, right. And this was. Pre COVID we launched , for those that are watching that don't know, we actually launched right into COVID and the V1 , of the Sampoll product was actually intended to help in store brand ambassadors during in store demos.

So we launched into that and then kind of explore the other options. What do we do now that the retail sampling is shut down in 2020? Explore the ship to home, explore the retail base with coupons and rebates. We ended up obviously going with the latter. Because the economics just tend to work a lot better , in that scenario, right?

Otherwise you're probably in order to make it cost effective, you're probably packaging it in. As a, you know, an aggregation with other products and sometimes that's fine in order to ship it to someone's home. But we do run campaigns even today now where we're integrated with Shopify and we are sending folks to a Shopify store front to get the product delivered directly to their house.

So it's, you know, a little bit of a different model, but it's the same thing 

[00:03:00] effectively. I would say though, the vast majority of our programs focus on driving velocity In retail locations either in a very targeted way or more broadly across the country. 

Jordan Buckner: When you find is the best opportunity to use sending product to someone's home versus sending them and destroy the purchase.

Justin Lutz: You know, again, I think a lot of our programs are retail focused. And if you think about the reasons that you might consider that. You just got into a new banner, right? You're expanding geographically. You're trying to build awareness. you're trying to impress the buyer. You want to build your narrative in store.

And for that reason, it makes sense to drive folks into the store. And then you also, by the way, it's up to you, whether or not you want to go back to your buyer and say, Hey, you know, we put X dollars behind this with Sampoll or whoever it is. And by the way, when they go into the store, And they buy our product, they're leaving with 40 in additional merchandise.

So, you know, think about how powerful that is from a narrative standpoint. And then on the other side, like, okay, ship to home, the convenience of that is undeniable, and we see that in the data, the engagement rate, the conversion rate. Because it's a single [00:04:00] click and it shows up at your door. What you don't get there is you don't get that story that you're able , to talk to your retail buyers about.

And that retail awareness and the organic buzz in a particular location or with a particular banner. 

Jordan Buckner: Yeah. And I bet a lot of founders who also were not selling in. In retail or in grocery, aren't as available nationwide, whereas ease of the purchase. Right. That might be a little bit harder 'cause you're limited totally.

In the geography. 

Justin Lutz: Yeah. Just real quick, that's a big piece of it there , is also not having to deal with individual buyers. Right. Not having to get the affirmation or the buy-in of any particular banner and saying, Hey, we're gonna launch this at Kroger. We're gonna launch it at Target, or we're gonna launch it , at Mom's organic market.

And we are in control of what's going on.

Jordan Buckner: So let's talk through, I think maybe focusing on, on the retail element, right? When you're sending people into store, what are some of the goals that you see typically that founders have around when they want to activate sampling? And then you mentioned a little bit, right?

Like men may be lodging into a new retailer and how you support velocities there. [00:05:00] It may even be before that. Pitching to a retailer and explain to them how you're going to support them and drive stores to make sure that they're sell through to reduce the risk of them bringing you on. Right. What are some of those other key moments?

Justin Lutz: Yeah. I mean, as far as the conversations we've had geographic expansion you know, banner expansion you, we've also had campaigns run where it's like, Hey, we're a little lethargic , in a particular geo in a particular location. We'd like to boost that. Arguments to be made on both sides, right?

So some folks are of the mind that it's better to lean into your winners and cut your losses , and others are like, Hey, we think there's an opportunity to kind of pick this one back up. And this can be the shot in the arm that we need to do that. As far as other situations, definitely new product launch independent of driving velocity, you're driving massive awareness and engagement.

And in capturing, you know, tens of thousands of real first party data points. So understanding when you launch a new formulation and you know, we have a few brands that just did this actually recently you launched a new formulation and you want to understand, you know, how the flavor is [00:06:00] resonating, right?

A new logo, a new package design, whatever it is, all of this information we can capture really elegantly through the chat that Sam, our digital brand ambassador has with the consumer up front. And you're capturing them in a moment when they're highly engaged and they have every incentive to have a quick conversation with you, right.

And give you that data. So, and that's something, I mean, you think about how much you would spend to get that data elsewhere. But here it's just, it's part of the 

package. 

Jordan Buckner: So tell me more about you mentioned Sam, the digital brand ambassador. Let me hear a little bit more about what that is and how it helps brands.

Justin Lutz: Yeah, Sam is a differentiator for us. I think when you look at the, at the ecosystem here and the other, some of the other service providers very rebate focused, right. Rebate marketplace the 800 pound gorilla being I bought a, and, you know, of course they're doing something right there.

They're a massive company with a massive reach. And so we try to take everything that works there and layer on this element of. The digital brand ambassador. And that, you know, kind of harkens back to my first point, which was we launched as a [00:07:00] tool for in store brand ambassadors. So the original conversation was like , how do we take the magic of that in store experience and the conversation that you have and port it online?

And Sam was born out of that, right? So right now it's look like, to be totally honest, I We are in phase one of our three phase kind of approach here as far as building out a true digital brand ambassador. But the goal at the end of the day is to allow consumers to have an experience that is as memorable and magical as talking to the most highly trained real brand ambassador you could ever hire.

So that's where we're headed. 

Jordan Buckner: I think that's really exciting. and then that's primarily used as a way of. Acquiring new people to Sampoll your product, right? So typically people as your brand, you're looking to use a digital rebate product coupon or something, someone in store, you're maybe doing advertising on social or sending something to.

And then you're dropping them on a landing page. Typically they just like maybe input their email and then you have to manually kind of follow up [00:08:00] or something to like, send them out instructions on how to redeem and Sam kind of comes in at that stage to really then have a conversation with them one on one , on how to best deliver that experience to them.

Justin Lutz: Yeah, exactly. And , you think about the opportunities there and I will say most of our brands. Lean into that, right? And they're like, Hey, we can ask questions. Of course we want to embed this micro survey into this experience. Some say, listen, , we love it, but we're small and we just need to get as many signups as possible on this thing.

And we'll loop back later and talk more about that data. And of course, I mean, you know different teams, different sizes, , different stages of growth, and you're focused on different things. You but , we know that it's there and it can be turned on and customized at any time. So really the sky's the limit as far as what you want to do with it.

Jordan Buckner: That's exciting. So I want to get into some of these other use cases too. So one thing that I've seen in addition to like launching a new retailer, Is to use sampling as a way to drive velocities in preparation for [00:09:00] category reviews or maybe seasonally downturns, right? Because. I had a came in with a myth that actually retailers, when you launch in their stores, they wanted to see how your products organically performed, like without any promotion or sales or things like that.

And when I did it, it was a mass failure because our sales, like tank, the product was like messed up all over the store. You know, even when we were sending people to the store, they couldn't really buy it, find it. And we ended up getting like going like, kicked off the shelf essentially after six months.

And what I learned is retailers instead, they actually want to see brands driving traffic to the store, to the aisle, to the product to get it moving and getting people shopping in store. Because it's usually after that initial kickoff that then that organic repeat can start happening. But if people don't know that you're there, you're not sending them there, then they're, you know, it doesn't help them or help you.

Justin Lutz: And I can't imagine, you know, how many people have PTSD listening to that story, right? It's a tough thing when you're launching and it totally makes sense to think like, Hey, I'm going to get out there [00:10:00] organically. And then we're going to build on that so that we have a baseline.

But the days of build it and they will come are long gone. Right. So in contrast, that's where we want to empower the brand to be able to have that conversation with the buyer, if they so choose, right. And say, this is what we do. Here's our strategy. This is what the type of program we put behind it.

When you bring us in. And we know, I mean, the savvy marketers and sales folks on the CPG side are aware and understand that the real power here is in the long tail. Right. It's not on that first purchase, the first trial, right. But it's in giving them the opportunity to get it in their hands. So that then you have the opportunity to convert them down the road.

You never get them in the store. You're dead in the water. 

Jordan Buckner: So let's talk through some of the other tactics. I think brands can avoid what employ this or deploy it for. So one is probably like acquiring new customers. Kind of maybe fresh customers to send them to store. Have you actually seen brands using a tool like this to take existing DTC customers or people on their email list that maybe haven't purchased in a while and then trying to direct those to their local store?

Justin Lutz: [00:11:00] Yes. in both ways, right. From online. To offline to in store and from in store to online depending on your goals , and your KPIs. But as far as reconversion, that's the million, probably billion dollar problem that we're trying to solve here, if, you know, if not more probably significantly more, but you know, how can we prove.

That we are reaching customers that are most likely to be loyal and most likely to come back. And because traditionally a lot of that happens offline in a black box, right? And it's like, okay, we get the first purchase, we got the product trial, we got it into their hands the first time. And unless we're reengaging them, how do we know if they ever went back?

Now you, as the brand might have access to some of the retail data. But if you can't attribute those things, it really doesn't matter. So that's what we are this year. Specifically , this second half, of this year and the next year, we are really hyper focused on what we call like the follow up or the loyalty flow, the loyalty engagement, where we can get folks to come back and track them and attribute that reconversion and say, okay, we know that these folks , are converting.

Right. We got them [00:12:00] for the second purchase. We got them for the third and beyond. 

Jordan Buckner: I love that. You know, one of the best pieces of advice I ever heard, and I forget exactly who told me this, but essentially you want to make it easiest for a customer to buy your product where they prefer to buy it. 

Justin Lutz: Exactly. Yeah. 

Jordan Buckner: And as an e commerce or as a brand, usually a lot of founders feel, or maybe on paper, they make more margin selling through their online e commerce site. But a lot of people don't want to buy a box of 36 of your energy bars at one time, right? They just want one or five and because of that they won't purchase at all.

And so how do you drive the people who want to purchase in bulk? They can purchase online. The people who want to buy in store, they can buy in store. And you're making that process as easy as possible. And so we talked just now about like converting maybe some of your digital customers into retail customers.

One of my favorite strategies as well is taking retail customers and converting them at least within , your digital marketing system where you talk about like loyalty as well. And so, you know, one of my favorite tactics is when you're running demo programs, [00:13:00] making an offering a digital rebate, where someone buys at the store that day, you're offering them a discount on the product and to redeem it, right?

They scan the receipt when they purchase and then send it to you. They get money back. And then they're also then added into your, your loyalty flow. And then I'm curious if you've seen brands testing out, right? Like you mentioned this as a focus, how do you get them to make that second and third purchase so that they become habitual users?

Justin Lutz: Yeah. Yeah. So the loyalty flow, , it's a complex thing. Right. And we know that the big conversation that we have is how do we Getting a bunch of freebie seekers, frankly, right? Like, this is a systemic issue in this space. And of course we have the ability to kind of target and segment the audience.

And we know that there will always be some contingent of that. But we actually just recently have deployed a beta version of a tool that helps us understand specifically the customer that is most likely not just to engage the first time but to reconvert. And we're testing this out as we speak.

But, what's cool about this thing [00:14:00] is that it can help us drill down to like the kinds of colors and imagery 

and specific messages, right. To reach this type of customer that's most likely to really convert. So on the loyalty side, I think there is, we're just scratching the surface.

Right. Literally. And when we crack that, if we crack that knot, but when we crack that knot fully, It really changes the game, right? Because then it's like, we don't have to say, trust us. You know, you get the first one, you know, your product's good. You know, they're going to come back, but now we have the data behind it to prove it.

Jordan Buckner: I love that. You know, one thing that. I was really excited about 10 years ago. I mean, it was 15 years ago. Now people are still talking a lot about personalization and that becoming the thing online. And I feel like we've barely scratched that as an industry, right? Like personalization now is like you've purchased the last 30 days or not.

But imagine if you know that. This shopper buys your product at Target, they're going there, you know, once a year and there might be an opportunity to get them to purchase four times a year, right? Like, and then you can send those specific targeted [00:15:00] offers at those opportunities that might be, be best. I think that's, there's a lot of technological kind of challenges within that of thinking about individuals, but.

If you're ultimately able to provide those reminders, provide that value , for customers, it can help both people. I believe, right? Like if someone tries their product and even if you offer them a free one, if they don't like it, they're not going to get the most, won't get a free product. You will, but like most won't even get it for free.

But if you're actually providing something of value that they want and you're able to, you Remind them or give them a special offer for being loyal customer to encourage that habitual purchase. I think there's a lot of power in that and building up those loyalists , for your brand. And most retail brands don't have that information and don't even think about it as being possible.

Cause it's challenging. But I think there's an opportunity to start doing that, especially if you're a relatively small brand, you're able to be kind of have that E commerce mindset and bring that to retail to be able to build a digital relationship with customers instead of it being kind of a anonymous one rate relationship.

Justin Lutz: Oh yeah. Yeah. , a hundred percent. And I think , [00:16:00] you made a point earlier as well about effectively about optionality, right? Like letting someone purchase where they want to purchase. And that's something that, when I talk to a new perspective partner, one of the first things we say is, okay, what makes a successful Sampoll campaign?

Yeah. And it's like, obviously you believe in your product. You know that you're not using it as a Band Aid to cover up a product problem. But number two is optionality. Then it's like, how are we making sure that you're allowing them to take advantage of this offer in a place that they would want to go anyway.

And we're not like behavior changes, tough, trying to get someone to start shopping in a store that they don't normally shop is is an uphill battle. So remove that variable. And let them go where they want, obviously within the constraints of like the program you're trying to run. But understanding that the more optionality you give them, the better it performs.

So yeah, I mean, couple that with like the real personalization and understanding who they are and reengaging them knowing that once you get them hooked the first time. They are going to come back, they got a full size product, they're going to take it home, they'll share it with family and friends.

And that's it's a really powerful proposition that, 

Jordan Buckner: yeah, I love that. And so [00:17:00] think there are listeners, right? Think about when are those times that you either, you know, what are your goals? Is it to acquire new customers? Is it to engage existing customers or convert, you know, new customers at retail?

What are the different tactics that you can use to collect that data? And then how can you leverage and build that relationship? Post first purchase to be able to build them into repeat customers. And really that's the cycle and the, you know, you always talk about like flywheels of getting the customer into that journey and getting them to repeat over and over again.

Thinking about it from that mindset will help to drive your initial new customers, your velocity and your repeat purchase so that you can be more profitable on every single purchase that happens after that. 

Justin Lutz: That's I couldn't have said it better myself. 

Jordan Buckner: Justin, thanks so much for being on today. If you are looking at running digital sampling programs and want to know what's possible, reach out to Justin's Sampoll team and put the info in the show notes.

And you'll be able to get started. We have some special offers just for Foodbevy members as well so that you can get started at an affordable price to [00:18:00] drive sales for your business and drive trial. Justin, thanks for being out. 

Justin Lutz: Thanks so much for having me, Jordan.