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The Digital Transformation of the CPG Industry

  • Madison Vettorino

The Consumer Packaged Goods (CPG) industry’s digital transformation has arrived, and it’s determined to redefine the customer journey and experience. Properly harnessing the power of digital can help a brand successfully drive impact. 

A recent Connected Packaging Consumer Survey unveiled that a massive 85% of the survey participants purchase their household essentials online. While some are shopping in grocery stores, many have decided to move online and do not miss these trips. 

This survey also revealed more about the demographics of the people who prefer online shopping for household supplies: millennials, men, smart speaker owners, and individuals who reside in a city. 

The Consumer Packaged Goods Industry has evolved in the last year and a half, and honing in on digital might be exactly what brands need to make growth sustainable. Here are three key takeaways for CPG brands to remember as they embark on a digital transformation. 

CPG & Digital In A Post COVID-19 World

The challenge for CPG companies is to grab the attention of the consumer of the future. Brands can utilize available research on how the pandemic has altered consumer behaviors and make marketing decisions accordingly. 

Despite supply chain shortages, CPG brands still experienced an intense growth period during the COVID-19 pandemic. In 2020 alone, these brands saw more absolute growth than in the four-year period spanning from 2016 to 2019. 

The world isn’t as it was in March 2020, and consumers have changed with it. CPG companies can harness these consumer changes to prove themselves invaluable. For this reason, many people are prioritizing digital engagement. Here are the three ways that CPG brands can harness the power of digital to reach consumers. 

Rework The Customer Journey To Consider Digital 

A massive 75% of CPG shoppers revealed that they used digital channels in their most recent shopping journey for inspiration, research, browse, or even select a brand. CPG companies should invest in meeting consumers where they are: digital channels. 

In addition to this 59% of shoppers surveyed revealed that they complete online research before purchasing to ensure they are making the best choice possible. This presents an opportunity for CPG companies.

While the traditional customer journey followed a particular track, the customer journey of today looks much different. Due to the proliferation of both social media and smartphones, the customer journey is increasingly personal. 

The modern customer journey is connected to mobile phones. In an August 2021 Facebook study, approximately 81% of consumers confirmed that their shopping habits have altered since the COVID-19 pandemic began. These behaviors are likely to persist; 92% of respondents stated that they would continue their new behavior long term. Finally, a massive 66% of consumers reported that their mobile phones are their favorite shopping tool.

While in-store discovery still reigns supreme, it’s essential CPG brands meet their consumers in the digital realm. There is still the potential for discovery online; 55% of U.S.  online shoppers surveyed revealed that they purchase products that they happen to come across unexpectedly while browsing. 

Find Consumers Through Video 

During summer 2020,  consumers spent an increased amount of time at home. 61%  even stated that they spent more time streaming videos. Online browsing and social media use also peaked. 

Shopper engagement can–and should–extend to video platforms such as YouTube, where consumers go to learn, be entertained, and stay connected. Because of the variety of content, it’s a leaned-in environment that lends itself well to reaching prospective shoppers. 

CPG marketers can harness the power of video to drive impact. For example, Kellog’s Rice  Krispie Treat saw a 4% sales lift during a back-to-school season. This can be attributed to activating on YouTube. 

The beauty sector of the CPG industry also offers a similar opportunity. 40% of beauty shoppers that watched a brand’s video advertisement on YouTube spent over $40 more in their most recent shopping journey compared to those who didn’t.

Prioritize And Invest In Social Media Marketing 

Over 60% of consumers utilize social media to follow CPG brands that are of interest to them. The necessity of developing a robust social media presence for CPG brands cannot be understated. 

Aside from creating a connection via social with consumers, there are several other reasons why brands should invest in social. The data acquired from social listening can prove invaluable. Social can help a brand unlock consumer insights and gain a more comprehensive understanding of consumer response. 

CPG brands must have a cohesive social strategy and be present on all platforms; an agency such as Inspira has proven experience creating indelible social experiences. Reach out to us today to learn more about how we can craft social posts your consumers won’t forget. 

CPG brands can also leverage the power of influencer marketing on social media to drive results.  60% of global consumers revealed that they would follow a brand on Instagram after they saw it promoted by a creator who has their values and interests. In fact, among U.S. makeup shoppers, 55%  stated that they’re more likely to purchase a product based on a social post.

Reach out today to learn more about how Inspira can help your CPG brand utilize digital marketing strategies to create impact. 

 

SOURCES: 

CPG Social Media Marketing | ICUC

3 Forces Driving the CPG Digital Transformation | Packaging  Strategies

COVID-19’s impact on demand and costs in the CPG industry | McKinsey  

CPG shopper journey statistics | Think With Google  

Global online shopping research statistics | Think With Google  

How CPG Brands Can Leverage Influencer Marketing to Drive Results [Infographic] | Social Media Today  

Why CPG marketing should focus on consumer intent | Think With Google   

Covid-19’s Impact On Customer Loyalty | YouGov 

Here’s Why the Traditional Customer Journey Map is Now Retired | Brand Dignity    

Five facts indicating dramatic post-pandemic consumer changes | Schaefer Marketing

Five facts indicating dramatic post-pandemic consumer changes | Businesses Grow 

U.S. Consumers Excited To Shop Stores | YouGov