Published by McKinsey & Company, the article features Diageo’s Chief Innovation Officer, Mark Sandys, discussing how the company is transforming consumer experience and loyalty through data, innovation platforms, and generative AI—placing consumers at the core of its long-term growth strategy.
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McKinsey & Company.The article, published by McKinsey & Company, features insights from a conversation with Mark Sandys, Chief Innovation Officer at Diageo, on how the company is transforming consumer experience and loyalty through innovation. Diageo, the global beverage company behind brands like Guinness and Johnnie Walker, is redefining growth and loyalty through deep consumer understanding, innovative platforms, and generative AI. Chief Innovation Officer Mark Sandys explains how the company is putting consumer experience at the heart of its strategy to build long-term loyalty and brand distinctiveness.
Key Takeaways on Consumer Experience & Loyalty
Understanding the Future Consumer
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Diageo uses data and predictive insights to anticipate where consumer preferences are heading.
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Macro trends like sustainability, wellness, and immersive digital experiences (“expanded reality”) are influencing new product innovation.
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Flavor personalization is key: by acquiring flavor tech companies, Diageo tailors offerings to consumer taste profiles and seasonal preferences, enhancing relevance and satisfaction.
From Products to Experience Platforms
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Innovation at Diageo has shifted from standalone products to broader platforms that enhance consumer engagement.
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New offerings are designed to provide consistent experiences across occasions and categories, encouraging deeper brand interaction and loyalty.
Harnessing AI to Deepen Connections
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Generative AI is used to create more personalized, faster content and optimize media buying, improving brand visibility and relevance.
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Despite its power, Diageo emphasizes that human creativity and emotional storytelling are essential to stand out in an AI-enhanced world.
Real-Time Consumer Listening
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The brand’s marketing is now shaped by listening to online consumer conversations.
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Campaigns, like recent ones for Guinness, are created in response to how people engage with the brand socially, making the customer feel heard and valued.
Distinctiveness as a Loyalty Driver
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Diageo aims to create emotionally resonant, distinctive brand identities that AI can amplify.
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Its competitive edge lies in proprietary data, such as insights from maturing whiskey barrels, used to craft targeted and unique products.
Human-Centered Leadership for Loyalty
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Loyalty isn’t just about rewards—it’s about building trust and relevance.
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Leaders at Diageo foster a culture of continuous learning and experimentation, staying adaptable to evolving consumer needs.
Overall, Diageo’s consumer experience strategy is a blend of data-driven personalization, creative storytelling, and platform-based innovation. By combining the power of technology with a deep respect for human insight and creativity, the company is not just meeting consumer expectations—it’s shaping them. This approach is helping Diageo build enduring loyalty across its iconic brands.
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