Kellogg picks Epsilon for CRM, database work

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Kellogg Co. has selected Alliance Data Systems subsidiary Epsilon to build a real-time customer-preference management system and a classic database and to execute email deployment.

Epsilon will build and host a global consumer Web portal and preference engine that will enable consumers to register for communications from Kellogg brands, according to a statement from the consumer packaged goods company.

“If consumers decide to register or log in, they will be invoking our real-time functionality,” said Pierre Charchaflian, SVP of client services at Epsilon. “We can cleanse their data, identify if they're existing customers or not, and serve them real-time specific offers based on their profile.”

Kellogg has already launched the registration engine in the US for several brands, said Charchaflian. Epsilon will continue to build the US engine for additional brands and global operations. He did not name the brands currently using the system.

Epsilon will also build and host a CRM and analytical platform, which will let Kellogg marketers analyze customer behavior, and design and execute marketing programs, the service provider said in a statement.

“We will build a centralized repository that includes surveys consumers have answered in the past, coupons they've redeemed, transaction data, promotions and offers redeemed, and we'll be able to data-mine, model, report, design and execute campaigns,” said Charchaflian, who added that he expects the database to launch “probably towards the end of the year.”

Charchaflian said Kellogg selected Epsilon after a “very thorough and rigorous RFP” that “started early in the spring of 2010,” said Charchaflian. He declined to name the other companies that participated.

Epsilon has a “substantial” team working on the account, said Charchaflian, who declined to reveal how many employees will work with Kellogg. “The number will continue to be in flux as more brands and countries are added,” he said.

Kellogg brands include Keebler, Pop-Tarts and Eggo. The company reported second-quarter net sales growth of 11% to $3.4 billion compared with the same period of 2010. Second-quarter operating profit increased 12% to $543 million during the quarter. Reported earnings in Q2 were $343 million, a 19% increase compared with 2010.

Kellogg spent more than $850 million in 2010 on US advertising, according to Advertising Age, which also reported that the company works with Publicis Groupe agencies Leo Burnett Worldwide for creative, Arc Worldwide for digital marketing and Starcom USA for media.

Kellogg confirmed the deal but declined to provide additional comment.

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