CPG Marketing for the Digital World
Consumer packaged goods, or CPGs, are essentials used by most citizens every day that require regular replacement. Things like toothpaste, foods, over-the-counter drugs, and more. Now that we’re living in a world where nearly everything can be purchased online in a pinch and delivered in a dash, CPG marketing has become quite the buzzword. As reported on Investopedia, “While consumer demand for CPGs largely remains constant, this is nevertheless a highly competitive sector, due to high market saturation and low consumer switching costs, where consumers can easily and cheaply switch their brand loyalties.”
The Importance of Mobile
As one of the largest industries in North America, it’s no wonder CPG brands are constantly vying for shelf space and a prominent spot in front of consumers’ eyes. CPG marketers now spend more money on digital marketing than on all forms of traditional marketing combined, says a study released by Cadent Consulting Group. Would you guess that digital sales will hit nearly $5 trillion by 2021, and CPG sales will make up about $720 billion of that? Most of these sales will be placed via smartphone, which means you’ll be missing out on beaucoup bucks if your business doesn’t implement a mobile-first marketing strategy. Obviously an app would make sense (and a line of credit to help get it off the ground), but consumers also expect to research their choices online before purchasing; read reviews from actual users; and enjoy a personalized experience when shopping your site online.
Omni-Channel Campaigns
There are plenty of marketing channels available to us these days. From email to direct mail to social media and beyond, we’re able to reach our target audiences anywhere they go. To create loyalty with your CPGs, you need to implement a marketing strategy that straddles a wide range of channels. In fact, Salesforce reported that you need to reach a customer with 6 to 8 “touchpoints” before they commit to a sale. The article goes on to note that consumers are “increasingly immune to traditional advertising and sales methodologies, meaning they conduct more independent research and take more convincing before they’re sold on making a purchase.” Which touchpoints to enact are dependent on your target audience. What channels are they engaged with most?
Be Authentic
Consumers are savvier than ever. They expect authenticity in their marketing campaigns, such as videos of real-life users testing out a product. They want to know how the products you’re trying to sell them can be used in real life. So perhaps it’s time to cut back on the glitzy photo shoots and engage in influencer marketing or user-generated content. The more authentic your brand is perceived, the more trust and loyalty you’ll build with your consumer base. And that, of course, means dollar signs.