By: Mitch Tuch, MediaWhiz GM of Data Acquisition
According to a recent Forrester study, people are no longer steadfast in their support for certain Consumer Packaged Goods (CPG) products. This finding in particular should be of grave concern to the CPG industry. Shoppers could potentially favor private store products over established brands.
In lieu of the Forrester study, a significant number of CPG corporations are making the shift toward social media to expand their online reach, engage their once loyal brand base and launch new products. Although this is certainly great news for CPG, it could be better news for performance marketers tasked with helping CPG brands evolve with and improve upon their image.
The first positive impact social media will have on CPG involves “recency” and scalability. Social media “recency” not only offers instantaneous communication to the public, it also goes part and parcel with scalability. A website’s ability to grow at a rate comparable to its business is highly dependent on social media channels. For example, a Facebook user opting to “friend” or “like” a brand on his or her page increases exposure and can step up buyer intent exponentially.
Utilizing social media also brings consumer loyalty back to the fore. CPG products and brands have been around for a long time. They have a definite generational fan base. Social media allows this loyal base to discuss their favorite products and/or contribute ideas on how to improve upon lesser products as if they were extended family. Engagement sparks interest and drives demand for both consumers and retailers. It also enables marketers to precisely target and optimize campaigns saving time and money.
CPG does have one major hurdle to jump en route to establishing a fully integrated online presence: measuring ROI. That’s where proactive client services management comes in. Client services should conduct testing before, during, and after a campaign. They can analyze performance metrics along multiple channels, increase conversions by focusing on user engagement and improvements to landing pages, and streamline the sales process. Maximizing returns will help brands launch new products, thus, providing new avenues of engagement, demand, and profitability.
CPG needn’t completely abandon traditional media. But by incorporating a social strategy, the industry can spark significant growth in customers, awareness and brand value.