What you’ll read: Petco aims to connect with pet owners to drive growth.
As one of the leading pet health and wellness brands in the world, Petco knows a thing or two about growth. The company started as a mail-order veterinary supply in 1965, and has since expanded to over 1,500 locations throughout the United States, Mexico, and Puerto Rico. Like many brands, Petco reexamined its marketing efforts during the height of the coronavirus pandemic — a strategy that helped lead the company to record profits in 2021. Here’s how Petco’s approach to data-based marketing helps them connect with pet owners and build long-term loyalty.
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First-party data is key
In an interview with Forbes, Petco CMO Tariq Hassan said, “We want pet parents to feel seen, heard, and recognized in a personal way every time they connect with the Petco brand.” To that end, the company invested in a formal data management program to create visibility into key consumer attributes. However, in today’s challenging data privacy landscape, brands can no longer depend on third-party insights, so first-party information—such as purchase history, website activity, email engagement, and more—is key.
“Given all the recent changes in the industry, especially around cookies, you have to have first-party data to win in this space,” VP of Media Jay Altschuler said in a separate interview. Altschuler cited Petco’s Pet Pals loyalty program as a source of this much-needed information, as well as point-of-sale data.
When in doubt, test it out
According to Altschuler, A/B testing provides additional data on how campaigns resonate with different audiences. “We can test everything from products to pricing,” he said, incorporating social media and influencers into Petco’s marketing strategy as well. Of course, that’s only the first step — it’s important to pivot quickly and accommodate changing strategies as needed.
Hassan told Forbes that Petco uses real-time tools to track the results of different approaches “so we can quickly optimize investments across various channels.” He cites attribution models and experimentation as methods that “help sharpen our approach to both channel investments and creative messaging.”
Going beyond “just advertising”
Modern marketing requires connecting with customers, not just advertising to them. According to Hassan, “Today’s smartest brands are moving toward being experientially and culturally relevant… Smart marketing leaders today have to push beyond just advertising, communications, and sales in order to build lasting relationships and create holistic experiences for all of a brand’s consumers.”
For Petco, that means investing in benefits that both their loyal members and employees can appreciate. In addition to pet bereavement and wellness plans, Petco is expanding its focus on diversity and inclusion, looking at new brand partnerships, and more. This approach resonates especially well with Millennials and Generation Z, who appreciate an authentic, value-driven approach to marketing.
Petco’s marketing philosophy relies on data to power their growth marketing process, but collecting and implementing that information isn’t as straightforward as it used to be. Brands hoping to emulate Petco’s success may want to cultivate programs that generate first-party data, using it to test different strategies, and finding ways to build a community. And if that community happens to be made up of adorable four-legged furry friends, even better.