The consumer packaged goods (CPG) is an expansive industry, predicted to reach $721.8 billion in sales by 2020. With the volume of sales anticipated, it’s no surprise that the industry has become quite competitive. This competition, along with fluctuating marketing dynamics and consumer expectations prove challenging for marketers seeking to retain and win today’s shoppers. In order for marketers to preserve brand relevancy and appeal in an increasingly competitive market, they have to evolve their marketing strategies or risk failure.
Adopt the Belief that all Consideration is Valuable
When assessing products, marketers often categorize them as “low” or “high” consideration. While this seems to provide a simple way to establish priorities, it can often cause marketers to miss out on invaluable opportunities. CPG-related searches have significantly increased, meaning consumers are searching and, in turn, actively considering. Almost half of CPG shoppers use searches to become inspired or conduct research, and even more promising is the fact that shoppers who search report spending 50% more than other consumers that do not. Considerations, regardless of whether they are “low” or “high,” present marketers with valuable opportunities that can be capitalized on to further business.
Develop Useful Websites or Mobile Apps
Though searching proves an important part of the equation, it isn’t the sole facet. Searches provide opportunities for clicks, which can serve as landing spaces for interested consumers. As one-quarter of shoppers who have used websites or mobile apps to research or browse report spending 108% more than shoppers who didn’t use such media, it’s crucial brands direct consumers to useful destinations.
Websites and mobile apps should provide relevant and valuable information while also enabling visiting consumers the ability to interact with brand products or narratives. With so many digitally literate consumers expecting seamless and personalized experiences, poor online experiences can result in dissatisfied consumers and failed sales. Websites and apps should be easily navigated while also providing necessary information.
Enlist the Assistance of Digital Video
More consumers are beginning to invest in experiences and research prior to purchase. As a result, digital video has become an increasingly useful means of reaching prospective consumers. Platforms like Youtube provide consumers with connections, educational resources, and entertainment, increasing customer engagement online.
With its reach and plethora of media options, Youtube can also drive business, making it a promising opportunity for CPG marketers. Brand videos prove especially valuable, as exemplified by Kellogg’s Rice Krispie Treats’ activation, which increased sales by 4% during the back-to-school season. In addition to videos, Youtube advertisements have also proven to influence consumers. As a result of brand video ads, forty percent of beauty shoppers have reported spending over 40% more in their shopping than consumers who didn’t watch a brand’s ad.
While industry competition and fluctuations are nearly unavoidable, CPG brands and marketers don’t have to admit failure. By committing to simple mindset shifts, marketers can take advantage of industry changes, using them to bolster business relevancy and growth.