Consumer Packaged Goods Face New Dawn of Retail

In the constantly evolving, sometimes frantic, world of Consumer Packaged Goods (CPG), there’s always constant pressure on product development to deliver innovation and products that create differentiation in the marketplace. In the past, winning shelf space, well merchandised end caps, and timely promotions were all it took to get in front of consumers.

Rapidly changing customer expectations, an ever-widening competitive landscape, and technology have changed that. There is a retail renaissance underway where consumers are using their mobile devices to explore a vast landscape of choices and expect 24/7 support. In this article, we’ll discuss how consumer brands can meet the expectations of the modern consumer with messaging.



Purchasing Power to the People

Consumer brands have long been in the driver’s seat, picking the location, times, and variety of products available to consumers, but there has been a shift in power from brands to consumers. Parking, long lines, and lack of variety have driven consumers to explore ways to weed out the disjointed, bulky, and disappointing aspects of shopping.

Consumers are buying more than ever. However, the way that they are buying has changed drastically over the last few years, and their mobile phones are at the center of their experience. Mobile stats show steady growth in the number of smartphone users who make purchases from their device or use their mobile phone while shopping at brick and mortar locations to look up a product review or compare prices.

A growing digital fluency has led to a higher expectation of immediacy and personalization in all aspects of shopping online and off. The product is still the bedrock of the CPG/customer relationship, but the foundation must also rest on the speed and convenience of information and engagement consumers have come to expect from every brand and every interaction in their lives.

Consumer Brands: Overly Focused on Product?

Recent Deloitte research revealed that the majority of brand leaders (60%) believe product quality or product uniqueness (15%) are the company’s unique value proposition. These numbers tell a story of brands that are stuck on product differentiation as the thing that will set them apart from their competitors and drive customer engagement and loyalty.

This belief is why you’ll likely see significant investments in R&D and marketing. Meanwhile, the customer experience is suffering. Research shows that most consumers aren’t struggling with shopping or paying for products. Consumers can quickly find a variety of choices at the scroll, tap, and swipe of their finger.  

The most significant opportunity for customer experience improvement is at the top of the funnel with engagement and discovery (32%) and awareness and acquisition (24%).  These are the areas that Quiq clients are aligning technology in creative and efficient ways to optimize customer engagement and influence the consumers’ path to purchase through messaging.

Increase Share of Cart

Losing customers at the top of the funnel can be a really difficult to address. Consumers have more choices than ever before and if they have pre-sale questions about the product or your brand, you want to be able to address those questions in a fast and convenient way. Now, customers can text your existing landlines like they text their friends and family to get the answers that help brands increase conversion and share of cart.

Consumers are already shopping with their mobile phones in hand – comparing prices and looking at alternative products. Adding “Text Us” to your packaging can help those consumers who may need extra guidance on a purchase engage with your brand in an easy, convenient way when they need help the most. Messaging enables brands to have personal conversations with consumers and address their specific questions.

Maybe you don’t test on animals or use vegetable based inks and recycled paper on your blister cards. Perhaps you give a percentage of profits to a charity that connects with your audience. Packaging and in-store signage can only go so far to educate the consumer. Text messaging allows your brand to further tell your story, product benefits, and community involvement.

Quiq clients, like Direct Digital, decided to offer consumers the opportunity to reach them using messaging – text/SMS, Facebook Messenger, web chat, and IVR to text. This nutritional supplement brand found that when customers have questions about a product purchase, they can choose how they want to engage – at the moment of need – making it super easy to get answers quickly, thus converting them to purchase.  

The Cure for Engagement Ails

Messaging is everywhere, instant, interactive, viral, and informative. What started off as a way to connect with family and friends has now crept its way into every aspect of our lives. People all over the world use messaging every day in their personal lives, and now, consumers are looking for the brands they trust to send and receive the messages that matter to them.

Messaging has helped clients like Direct Digital readily engage with consumers on the go, using the one thing they can’t seem to be without – their mobile device. Innovative brands like Direct Digital are using their accessibility at the top of the funnel as a competitive advantage to increase sales, engagement and brand loyalty.

From new product introductions to product recalls, consumer brands have good reason to want to use messaging as a way to quickly and conveniently engage with consumers. With a 98% open rate and a 30% response rate, messaging is more effective than email or phone calls.

Quiq Messaging enables two-way communications with customers via text messaging and can be used to promote new products and build brand awareness so brands can continue to strengthen the relationship as the consumer moves down through the purchase funnel. If your brand is ready to lead the new dawn of retail, contact us for a short demo.

Quiq makes it easy for customers to contact a business via Messaging, the preferred channel already in use with our friends and family.  With Quiq, customers can now engage with companies via SMS/text messaging, Facebook Messenger, Web Chat, In-App,and Kik for help with their pre-sales and post-sales questions. Learn more about Quiq today at goquiq.com.

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