Consumers are doing more research on everyday consumer packaged goods than ever before.
It use to be that people would spend significant amounts of time researching expensive purchases like housing, automobiles and insurance, but the uncertain economic times has changed this. Consumers are doing more research about everyday consumer packaged goods than ever before. While advertising can ignite a spark and create initial interest for certain brands, marketers must be more aware of the important channels shoppers are using to make purchase decisions.
One of the biggest research points is price. Three out of five consumers say they search for deals before half of their shopping trips. Online search has played a remarkable role in the consumer process with over 55 million searches for “coupon” every month. This search term has been growing rapidly since 2006, showing that price not only matters more, but accessibility to discounts is more available than before.
Price sensitivity makes consumers more inclined to search for product reviews to make sure they are getting the best products for their money.
Search and social search have made the biggest impact when it comes to CPG reviews, a source of info that 70% check out before making a purchase.
So how do CPG brands help make that journey easier for consumers? Here’s an idea:
Branded Facebook pages are always asking fans to engage with their posts to receive free products. Is this driving growth? Maybe, but I’m not convinced. If I were in charge of Pampers Diapers (random example), I would leverage my strong audience and incentivize them to engage in other arenas:
“Tell other new moms and dads why you love pampers on consumerreviews.com and receive a 25% off discount.”
“Get 5 new parents to join our Facebook page and you’ll be the first to receive our newest Pampers product before it goes on sale.”
Social strategy for CPG brands often preach to the choir. In order to maintain a strong brand, companies need to grow their audience and have them take visible action where it makes sense in the consumer decision process.