Consumer Packaged Goods Archives | Bazaarvoice Tue, 09 Apr 2024 11:34:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.1 The benefits of social shopping across different industries https://www.bazaarvoice.com/blog/the-benefits-of-social-shopping-across-different-industries/ Mon, 25 Mar 2024 09:51:38 +0000 https://www.bazaarvoice.com/?p=50981 What were once weekend mall trips are now social media scrolls. With Facebook, Instagram, TikTok, and other social titans rolling out social shopping practices, the thrill of discovery and the joy of buying can happen within a single platform. Anywhere with phone service, at any time.

That’s pretty great for customers. But it’s also a huge opportunity for your brand. The average social media user spends 2 hours and 23 minutes a day on social platforms — that accounts for over a third of every minute spent on the internet. Because you now have the chance to engage with your audience in a more meaningful, direct way, you can turn literally every one of those minutes into a potential moment of conversion. 

Chapters:

  1. Why does social shopping matter for brands
  2. How brands in different industries win with social shopping
  3. Access the full benefits of social shopping

Why does social shopping matter for brands

Social shopping addresses a shopper pain point by making it easier for people to connect with what they want to buy. Where social commerce focuses more on selling, social shopping focuses on research and purchases, and improving the whole shopping experience.

Our Shopper Experience Index, an annual report into consumer behavior, tells us that there’s no more debate about the importance of social media and shoppable content. Here’s why:

  • Social media is the new search engine. Across the board, 58% of people are discovering products on social platforms. And before hitting the ‘buy’ button, 50% of shoppers are digging deeper, using social media to research their finds
  • Young adults are leading the charge. Nearly three quarters (73%) of 18 to 24-year-olds find their next purchase through social media. It’s their mall, their catalog, and their wishlist, all rolled into one
  • Buying is the new liking. With 50% of consumers making purchases directly through social media in the past year, the “double tap” has taken on a whole new meaning
  • Voice of the customer is key. 78% of consumers feel more confident in a purchase when they view shopper content — that includes creator-, influencer-, and user-generated content

In short, social shopping allows you to meet your customers where they are and where they increasingly prefer to find, research, and buy products. 

How brands in different industries win with social shopping

At Bazaarvoice, we have the pleasure of working with brands across every industry under the sun. We’ve helped beauty, CPG, and hardware companies tap into the magic of social shopping and user-generated content (UGC), lift conversion rates, and increase average order value.

We learned a lot from helping our customers. Here, we distill the most important lessons and fascinating case studies to help you.

Health & beauty

The health and beauty industry thrives on visual appeal. Social media platforms are the perfect stage for brands that fall into these categories. They can showcase their products in action, with vibrant images and videos that do more than sell — they tell a story. 

UGC plays a starring role here. Rich visual content from customers offers authentic glimpses into real-life results and applications (e.g. is the eyeshadow patchy? Does this foundation look good on a complexion like mine? Is this shampoo the key to becoming the star of the live-action Tangled remake?). 

This authenticity is key in an industry where trust and transparency are as important as the products themselves. And if people like what they see, shoppable posts make it easy to click and buy on the spot, turning inspiration into action in mere seconds.

The Body Shop

The Body Shop, a decades-long player in the beauty industry, wanted to enhance its online customer experience. In the words of Indar Chanicka, the brand’s Vice President of E-Commerce, “we set out to fully utilize our social content to drive engagement and use it as a tool to educate customers through their purchasing decisions. We want customers to (…) see the actual products and their benefits through the experiences of real customers.”

social shopping
The Body Shop implemented social media UGC into their product pages using Bazaarvoice Galleries

To accomplish this goal, The Body Shop integrated social media UGC directly onto product pages. The results? A 28% conversion rate on product pages and a 13% increase in average order value

Iconic London

Iconic London is a shining example of how brands can bridge the gap between social media inspiration and e-commerce action. First, they recognized the disjointed experience between social platforms and their website. Then, they set out to create a seamless journey that maintained the authenticity and engagement of social media while guiding customers smoothly to the checkout page

social shopping
With Like2Buy, Iconic London effectively bridges the gap between social media discovery and action

Iconic London implemented Like2Buy, a tool that turns your Instagram pictures and videos into informative, directional, or shoppable posts. This approach allows customers to transition from social media to the website without feeling disconnected. 

By coupling UGC, Instagram, and Like2Buy, Iconic London was able to increase conversion rates by 126% and lift average order value by 11% in just 12 months. 

Apparel & accessories

Trying on clothes is a pretty important part of the shopping experience. How else will you know if that pair of jeans fits just right? In the context of e-commerce, apparel and accessories brands have found a savvy way to bring the fitting room to their audience, right through their screens. 

Social media brings fashion shows to every feed. Each scroll is an opportunity to show off the latest and greatest trends, pieces, and styles in action. 

Once again, UGC proves to be a valuable ally. Just like with beauty products, it offers a front-row seat to real-life product demos. Authentic, diverse, and oh-so compelling, this type of content turns everyday customers into the stars of your show, modeling the clothes in their own unique styles and settings. 

Isabella Oliver and Baukjen

Isabella Oliver and Baukjen acknowledge the value of showing their clothes on different bodies. The brand embraces visual UGC to enrich the virtual try-on experience and make online shopping feel as personal and engaging as visiting a store.

Their strategy is simple yet impactful: a monthly hashtag contest encourages customers to share their #BaukjenStyle, turning the competition into a curated display of real-world fashion. 

Isabella Oliver and Baukjen uses the hashtag #BaukjenStyle to curate UGC on social media and displays the content on their website with Bazaarvoice Galleries

Bazaarvoice Galleries then takes these snippets and places them on product pages to create a digital window display that’s both beautiful and relatable. The feedback speaks for itself, with customers expressing newfound confidence in their purchases, inspired by seeing the clothes on bodies just like theirs. This confidence translates into tangible results: a 120% increase in conversion rates and a 10% lift in average order value.

We love Isabella Oliver and Baukjen’s approach because it proves that, in the online fashion world, the best way to know if those jeans fit just right is by seeing them in action.

Home improvement

In the home improvement sphere, the phenomenon of social shopping introduces a dynamic where the aspirational is instantly attainable. Instead of just sources of décor ideas, platforms like Instagram and Pinterest become marketplaces where inspiration seamlessly leads to transactions. 

And with a little help from UGC, facilitating this transition becomes easier. Shoppers don’t have to hesitate before buying because they don’t know whether that chaise longue would look good in their homes. You already have a library of relatable content showing them it will.

Dreams

Dreams took their success to new heights with UGC. The brand spotlights their bed frames, sofa beds, and furniture through the lens of real customers’ homes. The #mydreamsbed social media campaign (sensing a #theme here?) showcases customer-inspired bedrooms but also serves as a testament to the power of community in shaping brand perception. 

social shopping
Dreams launched a social media hashtag campaign to collect rich UGC that now populates their website

With high-quality, scroll-stopping images populating their homepage, Dreams has created an engaging first impression that draws customers deeper into their product range. Their strategic use of UGC has led to a 200% increase in conversion rate and a 62% rise in average order value

But perhaps more interesting is how the influx of customer photos has informed Dreams’ own creative direction. Octavia Benham, Dreams’ Head of E-commerce, explains how UGC inspires the team and helps them craft their own content. ”Previously, our own product images didn’t look very lived in, but we changed that based on the UGC content we were getting,” she says.

Consumer electronics

Let’s face it: the more expensive the purchase, the more we rely on other people’s opinions and the longer we consider handing over our money. Such is often the case for consumer electronics, where the price tags tend to be heftier and purchases less frequent.

Given social media’s role as the hottest rising star in consumer research and purchase, there’s an opportunity for brands in this industry to share social proof and nudge people towards purchasing in one fell swoop.

Midland Radio

Midland Radio, a leader in two-way communication devices, recognized the untapped potential of showcasing UGC to enhance their digital presence and boost customer engagement. The brand successfully curated UGC from Instagram, Facebook, and other social channels to enrich their site’s content and make it more relatable.

social shopping
Midland Radio uses Like2Buy to provide a seamless social shopping experience

The results speak volumes: a 143% increase in conversion rate and a 27% increase in average order value. But Midland Radio’s approach didn’t stop with collecting and displaying UGC. With tools like Reveal, Showroom, and Like2Buy, they also enhanced their Instagram strategy, making it easier for followers to transition from browsing to buying. 

Food & beverage

Being able to taste a product on social might be a little ways down the road. Thankfully, humans have other senses that food and beverage brands can appeal to. When done right, visuals can almost convey flavors, aromas, and textures (drink if you’ve never “eaten” with your eyes!) 

Social media is the perfect place for storytelling. Food and beverage brands can get creative with their shoppable posts by sharing recipes that feature their products or partnering with food influencers and UGC creators who show the goods in action (yes, this does include eating said goods. There’s a reason mukbangs are still a popular type of content — some people just enjoy seeing other people eat. It is what it is).

T2 Tea

T2 chose to stir up their social shopping strategy with UGC and shoppable posts. They partnered with Bazaarvoice to amplify brand presence and cultivate a digital environment that mirrors the communal and sensory nature of enjoying a steaming cup of tea. 

T2 uses Instagram shoppable posts to allow shoppers to buy as soon as something looks appealing

“Our aim is to create a community of tea lovers,” said Sally Lennox, Head of Digital at T2. “UGC is a way for us to embrace our customers by hearing their unique perspectives and displaying that word-of-mouth content on our digital screens. It provides such powerful social proof when customers can see that others are loving our products.”

T2 celebrates its fans by capturing and posting social media UGC on its home and product pages with Bazaarvoice Galleries. The brand also implemented Like2Buy and shoppable posts on Instagram so browsers can immediately access the products that catch their eye.

Consumer packaged goods

The landscape of consumer packaged goods (CPG) is a competitive one, with direct-to-consumer (DTC) companies increasingly taking over a share of the market. Building trust and signaling safety is thus becoming more and more essential. 

Many CPG brands are turning to social media to push educational content highlighting how real people use their products to make their lives better/easier/more fabulous. And if there’s a direct path to purchase right there in the posts? That’s the cherry on top.

MAM

Understanding the concerns and desires of parents who want the best for their little ones, MAM UK harnessed the power of social proof. So the brand leveraged real-life experiences and endorsements from satisfied parents to reassure potential customers. 

To amplify their UGC strategy, MAM implemented social commerce solutions, effectively completing their full-funnel marketing approach. Bazaarvoice Galleries allowed MAM to curate and display authentic social photos and videos from advocates, creating beautiful product galleries on their website. 

social shopping
MAM uses Like2Buy for a quick and painless social shopping experience

The strategy made their products more relatable, which translated into engagement and profit — more precisely, a 258% increase in time on site, a 108% increase in conversions, and a 58% increase in average order value

Access the full benefits of social shopping

Social shopping isn’t a fad — it’s the new normal. And if you have the right tools and the right partners, there’s no reason why you won’t be able to adapt and thrive. 

Dive into the world of social shopping with the ultimate guide to social media conversion for more actionable tips on how to create captivating shopping experiences that impact your bottom line.

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6 grocery marketing trends to drive e-commerce sales  https://www.bazaarvoice.com/blog/grocery-marketing-trends-to-drive-e-commerce-sales/ Fri, 14 Oct 2022 15:26:03 +0000 https://www.bazaarvoice.com/?p=33720 Grocery shopping is a necessity. We’ve all gotta eat, right? Whether it’s doing the big shop on Saturday morning or just picking up a few things after work, the average American visits the supermarket 1.6 times a week. To get these shoppers in your store or on your website buying your products, there’s a number of emerging grocery marketing trends, like focusing on Instagram, you should be paying attention to if you want to drive e-commerce growth.

These days, grocery brands face increased competition for consumers’ food budgets. With inflation causing rising food prices, 42% of consumers say they’re looking for ways to save money on grocery shopping this year, according to McKinsey & Co. Shoppers are also researching promotions, switching to less-expensive brands, and buying private label brand products to slash their grocery bills. 

Attracting shoppers now is the latest issue the grocery industry has faced over the past two-plus years. The COVID-19 pandemic changed grocery (and all) shopping habits, spurred the growth of grocery e-commerce, and caused supply chain issues.

Grocery marketing trends for 2023

Bazaarvoice recently attended Groceryshop, the leading event for grocery and consumer packaged goods (CPG), where global retailers and industry experts discussed current trends, as well as what’s next for the industry. 

Using insights from the event, and our own industry research, here’s the top six grocery marketing trends for you to incorporate into your strategy to grab the attention of food shoppers and boost e-commerce sales.

1. Capture customer data to offer more personalization 

Shoppers want to tell you about themselves, and it’s crucial for you to listen. Encourage ratings and reviews, answer their questions, and engage with them on social media to offer more personalization, which customers are growing to expect.

Companies with stellar personalization programs can generate 40% more revenue than their competitors, according to McKinsey & Co. 

With the growth of grocery e-commerce and loyalty programs, retailers and brands have amassed more data than ever. You can see which brands shoppers interact with and ultimately purchase. All of this data can be overwhelming, though. But learning to manage it, such as by using a customer data platform, will help you transition grocery shopping from “transactional to inspirational,” as Instacart CEO Fidji Simo put it during Groceryshop. 

Use first-party data to improve the customer experience, empower shoppers, and get ahead of customers. Instacart, for example, makes 300 million grocery item replacements using data to predict the best recommendations for its shoppers. 

2. Convenience e-commerce, not just convenience stores 

Grocery e-commerce accelerated during the pandemic, and it’s here to stay. Shoppers enjoy the convenience of online grocery pick-up and delivery, but still want to shop in stores. Our 2022 Shopper Experience Index found that 64% of shoppers enjoy hybrid shopping that blends both worlds. 

Everyone shops with their phones in hand. Being able to use your phone to scan products and get information about items adds value to the grocery shopping experience. So does visiting an e-commerce grocery site and seamlessly loading up your shopping cart and checking out quickly. No matter how and where they shop, consumers expect similar pricing, promotions, and products in stock across channels, as well as personalized recommendations and deals. 

Retailers and brands must take an omnichannel approach and stop thinking about online and in-store shopping as separate entities. Grocery store chain Albertsons, for example, has debuted several digital tools, including curated shopping lists, online meal planning, ready-made meal delivery, and a scan-and-pay mobile tool.

grocery marketing trends
Source: Grocery Dive

And to create value for omnichannel shoppers, Instacart launched several in-store tools, including electronic shelf tags, smart carts, and digital list-making.

3. Lean into social commerce and shoppable moments 

People already spend hours on their phones every day — checking email and scrolling through their social media feeds. But now they’re looking for things to buy, too.

While most brands already sell products on social media, there’s huge opportunities for you to jump on the grocery marketing trend of social commerce by utilizing shoppable content.

Expanding e-commerce beyond your website to social media and even partner sites and email lets you get in front of shoppers wherever they are — and inspire their shopping journeys. Grocery may be behind other industries when it comes to social shopping, but it’s rapidly catching up.

grocery e-commerce
Products shopped for on social (green) vs. in-store (blue)

Consumers just want the content to be authentic (more on that below), showcasing real people in real situations. If it feels too scripted, it’ll be a turn-off. 

Some ways grocery brands are embracing social commerce and shoppable content include shoppable recipes that link directly to grocery e-commerce sites to purchase ingredients. Shoppable live streaming and short videos are other avenues that brands are exploring, according to brands featured at Groceryshop. These features let shoppers learn about products and purchase them in real time. 

4. Make sure your messaging is authentic 

Being authentic gains consumer trust, which will inspire them to become loyalists. Younger consumers, especially, expect brands to show up authentically, actively support causes, and share their values. Lean into storytelling to connect with consumers—and make sure your content reflects the real world. 

For example, center messaging around affordability and deals to connect with customers as food prices are rising and budgets are stretched. Online grocery shoppers or those who embrace hybrid shopping still care about speed and convenience, but the desire for lower prices remains their priority. 

One way to drive authenticity is with user-generated content (UGC). UGC isn’t necessarily a new grocery marketing trend as much as it is a proven method to consistently boost e-commerce sales. 50% of consumers want to see UGC on brand and retail webpages and social channels. According to the 8,000 global consumers we surveyed, this is because:

Source: The state of retail

So give shoppers what they want. Share photos from real customers using products or discussing how they use a certain ingredient in new and exciting ways. This visual UGC connects with consumers more so than professional, highly stylized shots and makes them want to buy things.

And, don’t sleep on written UGC either — retail giants like Walmart are already prioritizing this. Make sure your products feature plenty of ratings and reviews, which are an easy method of boosting shopper confidence and inspiring purchases. The combination of the two as an unbeatable combo.

Source: The 101 on UGC: Food & Beverage

Working with influencers also heightens authenticity. Consumers trust influencers as much as they trust family and friend recommendations and are inspired to purchase based on their suggestions. 

5. Showcase sustainability initiatives 

More Americans are moving toward plant-based diets and seeking to live more sustainable lifestyles. In a recent Bazaarvoice survey of 25,000 global shoppers, 60% of respondents said that sustainable/eco-friendly products are important to them.

U.S. sales of plant-based foods alone grew 6.2% in 2021 reaching $7.4 billion, which is an all-time high, according to the Plant Based Foods Association. Food brands and grocery retailers should emphasize their plant-based offerings to attract these customers.

Consumers are concerned about other aspects of sustainability, too. You can connect with them by highlighting your environmental, social, and governance (ESG) policies and values, related to supply chain, packaging, and food production. Not only is this what shoppers want, but they’re willing to pay more for it.

Shoppers think brands have a responsibility to make the world a better place, and they’re more likely to buy items that have a positive impact on the environment. Our own research shows that 51% of consumers look at brand websites for information about their sustainable practices, and they want more content from brands about these initiatives. 

Sustainability isn’t exclusively a grocery marketing trend but with today’s consumers, especially Gen Z, will to pay more for green prodcuts, it’s an effective way to drive e-commerce growth.

6. Retail media networks

Retail media networks are a hot grocery marketing trend, expected to only get hotter with retail giants like Amazon and Walmart already in on the act. But first you might be asking what a retail media network (RMN) actually is?

Similar to a brand retailer partnership, a retail media network is where a retailer gives its brand advertising partners access to its first-party customer data and channels, like SMS, email, e-commerce site, and physical stores. This allows for better engagement with customers along the buying journey and allows brands to reach customers while they’re already in the purchasing mindset.

Essentially, the retailer becomes the vendor and the brand becomes the buyer.

This speaks back to our first trend of customer data, because, as Chrissie Hughes of Kelloggs explained during Groceryshop, it’s difficult to get the historically siloed CPG sector to solve problems and approach new opportunities only based on data. This is where retail media networks come in — a single source of data that provides improved insights and better decision making.

The grocery sector has seen lots of changes over the past few years. Arguably more than any other. And it’s always on the move. The key to success is always staying on top of emerging trends. But for now, focusing on these grocery marketing trends will help you connect with shoppers in authentic ways, ensuring you maintain healthy e-commerce sales now and well into 2023.

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5 CPG marketing tactics to meet changing consumer demand https://www.bazaarvoice.com/blog/5-cpg-marketing-tactics/ Fri, 03 Jun 2022 13:00:00 +0000 https://www.bazaarvoice.com/?p=28824 For obvious reasons, over the past year or two many people had to care for their homebound parents and grandparents. This included doing weekly shopping, even though most of it was done online out of necessity. The nostalgia of shopping for childhood brands is definitely an experience — to say the least.

But what happened when you purchased the shampoo on sale instead of the brand grandma really wanted? Grandma was probably upset, and you were probably confused. How can you not be a hero doing the shopping and saving money?

This exact scenario played out in numbers in a recent survey we conducted, “What drives CPG purchasing decisions?” We found that that level of brand loyalty (grandma-level, if you will) is gone. In fact, only 8% of respondents listed ‘brand name’ as the impetus for consumer packaged goods (CPG) purchases.

This number threw us for a loop in the ongoing pursuit to understand what drives consumers’ purchasing decisions. If not brand recognition or loyalty, what does drive consumers to purchase the things they use most?

CPG, or consumer packaged goods, are the foods, beverages, and personal care products households use most and depend on daily. To understand today’s consumers, we need to understand the different perspectives, motivations, habits, and feelings that drive them to purchase the products they use and need the most.

E-commerce marketers and CPG marketers should no longer rely on brand loyalty to drive sales. Instead, trends show that meeting consumer demands for authenticity in marketing, flexible delivery options, and offering socially responsible brands/products is the best way to drive growth, build consumer loyalty, and remain viable in today’s CPG market.

What is the current state of CPG marketing?

The CPG industry is among the most extensive retail sectors in the United States and globally. Last year alone, CPG sales were projected to hit $1.56 trillion (and that’s only in the United States).

Here’s why. On any given day, people consume everything from food to bath and body care to household cleaning goods. Therefore, the CPG market is massive in terms of potential revenue and also highly competitive in terms of advertising space.

To describe the state of CPG marketing as a fiercely competitive space would be an understatement.

Weak brand loyalty

If people have learned anything from shopping for their extended families over the last couple of years, it’s this: nearly 50% of consumers will abandon a brand they were otherwise loyal to for a brand that better satisfies their needs.

Additionally, as trends are clearly showing, Covid-19 made consumers more open-minded to trying new products. Addressing weaker brand loyalty head-on is necessary for CPG marketers if enterprises wish to stay competitive in today’s CPG market.

DTC startups are capturing a share of the CPG market

DTC, or direct-to-consumer, sales have seen a 97.18% increase since 2019 and are forecast to reach $151.2 billion in 2022. Concurrent with the continuous growth of the e-commerce space, DTC is proving to be pretty disruptive.

DTC startups offering established brands or more niche brands have entered the CPG marketplace with the aim of attracting consumers away from the legacy brands of their youth. What makes purchasing from a DTC so desirable? Well, for starters, it cuts out the middleman and sells products directly to the consumer. Plus, without the middleman, DTC retailers can offer products at a reduced price.

Some examples of DTC disruptors who’ve snagged a share of that highly competitive CPG marketplace are:

  • Birchbox offers beauty products delivered to your door monthly
  • Grove Collaborative won’t only deliver directly to you, but they also offer cleaning products and personal care items that are strictly eco-friendly
  • Glossier Glossier will deliver makeup, hair products, and skincare products directly to your door

5 CPG marketing strategies to cut through the noise

Did you know that e-commerce consumers are served between 6,000-10,000 ads a day? The current state of e-commerce and digital advertising means that CPG marketers have a lot of noise to cut through.

So, what are the best ways to stand out and meet consumer demand?

1. Leverage user-generated content

User-generated content (UGC) is everywhere. From who you’re following on social media to your friend’s thumbs up on a YouTube video, UGC has the potential to be a CPG marketing ninja.

In a 2022 survey, 45% of respondents said that friends and acquaintances are their sources of inspiration when it comes to purchasing new products.

Understanding how UGC works, and how to leverage it, is a must for CPG marketing managers.

Ratings and reviews

Reviews play a crucial role in the consumer buying process, from the foods and beverages we consume to the apparel we wear, and the health and beauty items we use. Plus everything in between. A 2019 survey conducted by Deloitte & Touche LLP showed that 75% of shoppers rely on customer reviews when considering products for purchase.

It’s clear that ratings and reviews are essential in today’s CPG market. Those companies not employing this marketing tactic are missing out on sales, revenue, and most importantly, the priceless consumer feedback they need to enhance their product and inspire more sales.

An e-commerce site doing this well is Walmart.com, by building a robust user-generated content platform. The brands and retailers on Walmart.com are directly connected to the consumer, so every shopping experience can feel authentic and give the consumer the confidence to buy.

Two awesome ways Walmart.com uses its UGC is by sorting its reviews by stars and number of reviewers. Additionally, they directly compare the “most helpful positive review” and the “ most helpful negative review.”

CPG marketing
Source: walmart.com

In transparently providing negative and positive reviews, you provide authenticity to the consumer (your potential customer). But it’s not just authenticity that you’re serving — you’re also serving context. 82 one-star reviews can turn a consumer off of a product. However, 82 one-star reviews for a product with 600 five-star reviews is the context a consumer may need to remain turned on to a product.

In the CPG landscape, Walmart.com is the standard for leveraging ratings and reviews effectively. And it’s working because Walmart.com recently boasted that they have gained market share in the grocery sector.

Visual UGC

Visual user-generated content comes in the form of images or videos. Like its counterpart ratings and reviews, what visual UGC really provides is authenticity. UGC is content created by real people, and consumers are more likely to view a brand as authentic because of it.

In the era of fake news, brands (and anyone in the digital marketplace) need to work harder than ever to be authentic and trustworthy. When it comes to UGC, it makes sense that 93% of marketers find that consumers trust and prefer content produced by other consumers (instead of brand-created content).

Think of visual UGC as social proof that your product is as awesome as you say it is. When consumers see people who are just like them (i.e., people they relate to) wearing or using a product, they may be influenced to buy it.

Some CPG brands turn to social media platforms like Instagram to optimize their visual UGC. CPG brands often take an educational or “how-to” approach that highlights how to use their products.

Screenshot 2022-05-26 10.47.35 AM.png

One such CPG brand that’s doing it well is Febreze, above. Its feed is full of educational content that spotlights how real people, influencers, and even stars use their various products. The charming video clips are simple but relatable, which is probably why more than 45,000 Instagram users follow them.

2. Offer product trials or free samples

CPG products that experienced growth during the pandemic addressed challenges like how to shop online, eat every meal at home, and do at-home beauty self-care. Even if your brand addresses one or all of these challenges, the CPG marketing space is dense.

One way to have your products and brands stand out is to offer product trials or free samples. A product trial is a great way to gain new and loyal-to-you customers for most CPG items.

In the ultimate guide to product sampling in e-commerce, we highlight one way to offer product samples: on the condition that consumers get to experience a product in exchange for feedback (like a rating or review) or tag your brand on social media or both. We already know that boosting content from real customers influences new buyers, which makes offering those free samples worth it.

A way to offer product trials is to do what Amazon Prime Try Before You Buy does. Prime members are allowed a 14-day trial for most wardrobe items across price points, making Amazon the easy decision for most online shoppers.

Another company doing this well is Naturebox. Naturebox wants to curate high-quality snack boxes for you and then deliver them straight to your door to solve all your snacking needs. To entice new consumers, they offer a 15-day free trial — that’s 15 days of snacks at no cost to the consumer. This is because Naturebox understands that 73% of consumers are likely to buy a product after trying it, so let them try it! It also forms the basis of why product sampling is so effective.

3. Partner with an influencer

We keep talking about authenticity, which seems to belie the idea of influencer marketing. But hear us out. Imagine partnering with influencers whose backgrounds or experiences mesh well with your brand. A solid match made on the foundation of authenticity can significantly impact your brand.

In the CPG world, look no further than Fiji Water to see a company doing this well. Fiji water leverages micro-influencers who were already consumers of their product. Micro-influencers like @MaryPhilips are beauty bloggers who share videos on their Instagram page outlining their daily skin regimen and how Fiji water fits into that. The partnership is a win-win for the brand and the micro-influencer. Both have access to each other’s followers and millions of new potential customers/followers.

CPG marketing
Image source

Aligning with an influencer who already uses your product offers the authenticity of UGC from real consumers, only now it comes with the potential new consumer power of the influencer’s followers. In the case of Mary Phillips, that’s 1.7 million potential new Fiji water drinkers…

CPG marketing on social media isn’t limited to Instagram — in fact, CPG marketing across all social channels is a must nowadays. You don’t have to limit yourself to micro-influencers either. You can still be authentic partnering with a mega influencer.

Take the DJ Khaled and Stride Gum partnership. Khaled took over Stride’s many social channels and created a unique CPG marketing angle for them. Our favorite from the takeover was on Stride’s Snapchat and this video.

Viewers watched DJ Khaled enjoying Stride and living the Stride vibe authentically down to an original tune.

4. Optimize delivery options

With increased need from global events (like a pandemic), retailers in consumer packaged goods are under additional pressure to adapt to new consumer purchasing behaviors. CPG retailers in e-commerce should consider diversifying their shipping options to meet the demands of these recent trends.

Here’s why. In February and June of 2020, home shipment constituted, “around 87% of e-commerce dollar sales of the non-edible segment of consumer packaged goods.” Remember, consumers today remain loyal to convenience above all, so the easier it is to get the product, the better your chance of making the sale.

There’s some interesting facts to consider about mega CPG retailer Instacart, so you can understand just how powerful and diverse delivery options are. After almost ten years of stagnation, Instacart “reportedly generated $1.8 billion revenue in 2021.” Additionally, during the coronavirus pandemic, they hit their first profitable month (since inception in 2010), netting $10 million. The same article indicates that “Instacart has an estimated 9.6 million active users and over 500,000 shoppers who pick up the items, and in March 2021, Instacart’s valuation was $39 billion.”

CPG marketing

Rethinking the ease with which your consumers receive their items is pretty important.

Across the board, CPG retailers (of both the edible and non-edible varieties) who took their goods online and diversified their delivery options have seen massive growth since 2020. It’s as simple as offering curbside pickup and same-day/next-day at-home delivery options.

Image source

5. Focus on social responsibility

Who isn’t considering the environment when purchasing products today? From food to apparel, DIY, and retail, sellers are paying attention because consumers are paying attention.

Sustainability is a critical element for CPG brands too. In fact, the same survey that found brand loyalty on its last legs also found that 77% of respondents feel it’s essential for CPG brands to source their products responsibly and ethically.

Some would even say that prioritizing sustainability is the only way to sustain success in retail today. Think about prioritizing sustainability as extending the positioning of your brand.

A great example of a company doing this well is Safe Catch. Safe Catch’s co-founder, Sean Wittenberg describes the company as, “At our core, Safe Catch is focused on the purity of food sources and, by natural extension, our oceans. Helping protect the marine ecosystem is part of our commitment to each other and the world. So, offsetting any plastic in our pouch packaging by intercepting and recycling an equivalent amount of ocean-bound plastic with rePurpose Global is a natural extension of how we value our shared planet.”

Safe Catch will still ship you the freshest, purest packaged fish, only now it comes with a side of ecosystem protection. Now, the brand can extend its positioning as a brand obsessed with food purity and ocean purity.

Choose the right tools to amplify your CPG marketing efforts

The CPG marketing landscape is a complex one. For what feels like forever, brands have relied on brand marketing and brand loyalty to drive and sustain sales. That isn’t to say that brand loyalty has disappeared. Moreso that times have changed.

So here’s the essential things to walk away with as you improve your efforts to stand out, meet customer demand, and drive growth.

  • Two things disrupting the CPG marketing landscape right now are weak brand loyalty and direct-to-consumer (DTC) startups
  • Consumer behavior has changed post-pandemic.

And there’s five key marketing tactics to help cut through the CPG marketing noise:

  1. Leveraging user-generated content, like ratings, reviews, and visuals
  2. Offering free trials or product samples
  3. Partnering with an influencer or affiliate
  4. Diversifying delivery options to include curbside pickup and same/next day delivery
  5. Placing a focus on social responsibility in order to extend your brand’s positioning

If your CPG company is ready to find the CPG marketing strategy that works for you, check out our complete guide to user-generated content (webinar version here), a valuable and detailed overview of how to get your consumers to also be your brand ambassadors. Or read our success stories about other CPG brands to inspire you. 

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CPG market research: What consumers want https://www.bazaarvoice.com/blog/cpg-research/ https://www.bazaarvoice.com/blog/cpg-research/#respond Thu, 12 May 2022 11:41:00 +0000 https://www.bazaarvoice.com/?p=13462 Lately, we’ve been trying to get inside the minds of our shoppers. We’ve been closely monitoring consumer behavior to understand how shoppers research brands and products and, ultimately, what drives their CPG purchasing decisions. 

In recent years, we’ve seen that ‘convenience’ and ‘product benefits’ have replaced ‘brand name’ more and more as a driving decision factor. In fact, in our most recent survey — research of consumer packaged goods (CPG) in North America — we found that less than a tenth (only 8%) of respondents listed ‘brand name’ as an important attribute for new CPG purchases, so we were curious when doing the survey how shoppers were choosing their CPG products, and why. 

CPG research key takeaways

The research of nearly 12,500 members of our Influenster community across North America explores the latest habits, attitudes, and sentiments for CPG products including food, beverages, baby products, pet products, household products, makeup, and skin care products.

What did we find?

1. Social responsibility: consumers are paying attention 

We’ve seen a noticeable increase in consumers taking the environment into consideration when purchasing products across a variety of industries. We’ve seen glimpses of this in apparel, DIY & home, and we even just put together a whole piece on sustainability’s part in retail success. Clearly it’s an emerging trend. 

And sustainability is a key factor when it comes to what CPG brands consumers will buy too. Here, though, it goes beyond just environmental issues and encompasses social and ethical issues as well. Of those we surveyed:

  • 77% said it’s very/somewhat important for them that CPG brands source their products responsibly and ethically
  • 76% said it’s very/somewhat important for them to see that CPG brands are taking initiatives to reduce their carbon footprint and embrace sustainability
  • 75% said that it’s very/somewhat important for them that the packaging of the product is eco-friendly or recyclable
  • 68% of respondents say that it’s very/somewhat important to them that the ingredients in the cleaning products they buy are natural and/or eco-friendly

As the above stats show, the majority of respondents state that being sustainable, recyclable and ethically-sourced are all key drivers when it comes to purchasing CPG products, which proves the environmentally-minded attitude of today’s consumers.

2. Ingredient labels are influencing purchase decisions

It’s not just what the product is, though, it’s what’s in the product that’s driving consumer purchasing decisions nowadays too. For example, 74% of our CPG research respondents who are parents said that it’s very/somewhat important to them that the ingredients in their baby food & drinks are natural and/or organic, while 81% said that it’s very/somewhat important to them that the ingredients in their baby body care products are ‘clean’ and/or ‘paraben free.’

Ingredient labels are, perhaps unsurprisingly, especially considered when it comes to purchasing food products:

  • 56% said that it’s very/somewhat important to them that the ingredients they use for cooking and baking are organic
  • 48% said that it’s very/somewhat important to them that the ingredients they use for cooking and baking are gluten-free
  • 44% of consumers say that it’s very/somewhat important to them that the ingredients they use for cooking and baking are plant based

This partly ties in to the environmental attitude of today’s consumers, as plant-based and organic tend to be greener, but on top of that it shows that consumers really care about their own health as much as the planet’s health.

In fact, 67% of the surveyed consumers want to see recipes from brands for cooking or baking that show alternatives, such as gluten free and organic products. This tells us that consumers are research dietary needs and health benefits when it comes to purchasing CPG products.

Consumers also care as much about their external health as they do their inner health, as the following table shows. We asked our members what they look for when it comes to choosing skin/hair care products & cosmetics, and here’s what they said:

CPG research

The responses from our community members clearly show that the majority look to avoid products like parabens and sulphates, which have long been considered to be harmful for the skin/hair.

3. Are consumers still shopping?

Yes, they are. But what are they buying, and when?

  • Consumers are more likely to purchase snacks & drinks – daily
  • Consumers are more likely to purchase frozen food – weekly
  • Consumers are more likely to purchase canned food, household products, pet products, skin/hair care products and cosmetics – monthly

A full breakdown of how frequently consumers are buying specific products looks like this:

There’s no surprises here really. Low-cost products intended for instant consumption, like snacks, tend to be bought daily. Whereas your pricier products, and those with longer shelf lives like cosmetics, are bought monthly. But the real question is where are consumers purchasing these products?

4. In-store vs online

Somewhat surprising, given the change in consumer buying habits, but in-store shopping is still the go-to when it comes to purchasing CPG products. While shoppers still research online, a huge 82% of the surveyed respondents said they prefer buying CPG products in-store at retailers (Target, Walmart), while 49% prefer buying online via retailers (Target, Walmart) and another 58% prefer buying online from Amazon. 

The results are slightly different when it comes to groceries specifically. 72% of those surveyed prefer buying groceries in-store at local grocery stores (Kroger, Stop & Shop) and 59% buy in-store at retailers (Target, Walmart), while only 30% of consumers prefer buying at retailers online. 

The results swing much more toward in-store groceries, likely because people like to see/hold the produce they’re buying, and not to mention they were one of the few types of store kept open during lockdowns.

Speaking of in-store purchasing, 66% of consumers are more likely to try a new product from shopping in-store (vs. only 34% who said online) which leads on to the final main takeaway from the survey.

5. What influences a consumer’s decision to try a NEW product?

We already know that reviews matter (particularly the recency of reviews.) Our own research has told us this. But do they matter when it comes to purchasing CPG goods? Yes, they do. When researching a new CPG product, the top three drivers for purchase are product reviews (82%) followed by family & friend recommendations (51%) then ‘best types of products’ lists (50%).

But when asked to select only one driver, the vast majority (64%) said they read customer reviews, as the following table shows:

CPG research

Reviews on social media specifically also play a large part, with 83% of respondents saying they’re very/somewhat likely to purchase a new product advertised on social media with photos and reviews from other shoppers. Another 82% would share their honest opinion about a new product by writing a review and posting on social media. 

Turn CPG market research into actionable results

As our CPG market research shows, there’s multiple attitudes and habits that consumers take into account when it comes to making CPG purchasing decisions. And clearly ‘brand name’ isn’t one of them. But if you’re wondering how your retail brand can win over these consumers, the trends are easy to spot. 

Make sure your brand is socially responsible, your products are friendly to both people and the planet (and clearly labelled so), and that you utilize customer ratings and reviews for other potential consumers to use, and you’ll have consumers won over in no time at all.

For more research, marketing strategies, and ways to stand out on the digital shelf, see our CPG industry page.

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Consumers love food, but not endless food choices https://www.bazaarvoice.com/blog/consumers-love-food-but-not-endless-food-choices/ https://www.bazaarvoice.com/blog/consumers-love-food-but-not-endless-food-choices/#respond Tue, 05 May 2015 18:56:33 +0000 https://www.bazaarvoice.com/blog/consumers-love-food-but-not-endless-food-choices/ Food is big.

With the rise of celebrity chefs, restaurant review websites, culinary apps and social media feeds, you can’t go far without hearing about food and drinks. Alongside the food and beverage industry’s dramatic growth, consumers are increasingly going online to decide what, when, and how to eat. But even as consumers eagerly contribute to and consume online content, food culture’s growth has yet to translate to significant ecommerce in the United States. The $600 billion U.S. food and beverage industry is nation’s largest retail category, yet only a small percentage of food sales are happening on the Web. This contrasts to Europe and the Asia-Pacific regions, where significant numbers of consumers have been ordering food and beverages online for more than a decade. For example, as many as six in 10 Australians use a combination of both online and traditional retail stores for their grocery needs. And according to a recent Singapore survey, more than half of the respondents (53%) had purchased food online at least once, with 15% doing so between one and three times per month. But why is food ecommerce lagging in the U.S?

Consumers feel overwhelmed by abundant choices

Today, U.S. food and beverage shoppers have an incredible amount of choices. In any category, hundreds, if not thousands, of options exist—most of which weren’t available a decade ago. Consumer dietary restrictions and lifestyle preferences have created gluten-free, organic, local, and other food categories. And the new choices and categories keep coming. This complex and competitive food landscape is overwhelming to time-pressed consumers, and brand-supplied packaging information is not meeting their needs. Considering research has shown that consumer reviews are trusted 12 times more than manufacturer information, it’s clear that traditional methods of promoting foods and beverages are no longer suitable. But what can food and beverage makers do to help consumers feel less overwhelmed?

Give all key product information across your online media

Consumers still want basic nutrition facts, ingredients, flavor variations, etc. when considering a purchase. By providing this information in an easily accessible format on the product, your website and social media channels, you’ll answer basic consumer questions and help prevent them from seeking out information from other sources (or your competitors).

Provide authentic consumer generated content on your website

As stated above, research shows that consumers overwhelmingly trust consumer reviews over brand-supplied information. By providing authentic reviews on your website, consumers will appreciate your transparency and reward you with their trust. You can also provide consumer stories, questions and answers, photos, videos, and social media content.

Promote customer reviews online and in-store

In addition to providing customer reviews on your website and social media channels, promoting reviews on your product packaging, displays and product inserts builds confidence in your products.
Food and beverage consumers are fickle—you must earn and keep their loyalty

Because food and beverages are generally less expensive and lower risk than most purchases, consumers with prior brand loyalty will quickly switch their standard purchase to a brand or product seen as more trustworthy or suited to their needs.

This provides great opportunities for emerging brands that can capture the attention of the information-hungry consumers, address their uncertainties, and guide their purchase decisions. Providing customer reviews both online and in stores is an easy and effective way of gaining new customers—and keeping ones you have.

This blog post is the first in a three-part series on the Food and Beverage Industry. To learn more, download our latest whitepaper: The info-hungry consumer: 3 trends transforming the online food and beverage landscape

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