10 Rules of CPG Management in the Digital Age
The consumer packaged goods (CPG) industry has undergone significant changes in recent years, forcing retailers to adopt novel approaches to enhancing productivity and efficiency. Most notably, CPG organizations are adapting to consumer demands for digital services and moving their operations partially or entirely online.
Although the transition to eCommerce has been ongoing for several years, its effects were exacerbated when the COVID-19 pandemic struck, as physical stores were unable to trade. According to stats from UN trade and development experts, the eCommerce sector saw its share of retail sales shoot up from 16% to 19% in 2020. With this in mind, how can CPG business owners and managers secure strong growth in the coming years? We’ve put together a list of effective CPG management strategies to help you get started.
1. Include ingredient lists on your product pages
Do you own a business selling food, over-the-counter drugs, or cosmetic formulations? If so, you must include clear ingredient lists on your product pages. Many retailers ignore the fact that eCommerce visitors cannot pick up a product and check the label as they would in a physical store.
Contrary to popular belief, however, consumers often read nutritional labels before purchasing products. Even amongst adults who are not watching their weight, 42% almost always or frequently read product labels. As such, failure to include ingredients lists could prompt customers to shop with competing brands. A good rule of thumb for CPG management when it comes to ingredients is to add them as text. Although putting ingredients in the product images is fine, adding them in the text helps with search results and allows the user to do a “find on page” for what they’re seeking.
2. Promote reviews on your owned channels
Did you know that 89% of customers around the world review product reviews before purchasing products? By highlighting reviews on your website and social media pages, you could boost your chances of converting leads to paying customers. Scouring the web for reviews can be time-consuming, so adding a review panel to product pages will incentivize busy customers to make quick purchases.
3. Consider reviews on partner channels
If you sell products on partner channels such as Amazon or Walmart, remember to monitor the quality of customer reviews and judge whether you should make improvements to your goods and services. If this sounds like a tough task, 1440’s Reputation Studio software is on hand to streamline the process. Featuring high-level competitive intelligence tools, this product will help you meet those all-important customer needs.
4. Respond to reviews and questions where permitted
Discovered a negative review that reflects badly on your company? Did a customer ask a question that wasn’t addressed in your product information? Don’t fret – sending cordial responses will help you weather poor publicity online by demonstrating your willingness to find solutions. In order to efficiently deal with a large number of replies, you can use Reputation Studio to ensure agent responses are on-brand thanks to strict managerial approval features.
5. Allow consumers to reach you via their preferred methods
Around 42% of customers prefer contacting businesses via live chat than any other method, including email and telephone. After all, messaging customer service representatives online is quick, easy, and can be done anywhere. If you’re new to the world of live chat, 1440’s Messaging Studio will ensure your employees handle customer queries quickly and professionally. In the long term, this will boost the user experience and your reputation as a responsive brand.
6. Keep track of your prices
Monitoring the price of your goods is vital, particularly considering the recent emergence of inflationary pressures. Remember to keep track of your Minimum Advertised price while maintaining a competitive edge in the marketplace. As goods prices rise across the board, selling your brand as an affordable alternative to competitors could pay off in the long term and help you construct a loyal customer base.
7. Monitor your shipping times closely
You may be aware that the world is experiencing an unprecedented supply chain crisis right now. As a result, shipping speeds are slowing down, and retailers are struggling to get certain goods on shelves. As a CPG retailer, it is your responsibility to closely monitor your inventory levels and communicate accurate shipping estimates to your customers.
Even if goods take a little longer than usual to reach customers, it is vital that you update them about the situation to prevent complaints and reputational damage. If keeping abreast of shipping logistics sounds difficult, 1440’s Commerce Studio is on hand to deliver effective solutions. As well as streamlining order processes and automating logistics tasks, Commerce Studio delivers personalized experiences designed to improve customer loyalty and drive growth.
8. Don’t assume all customers speak your language
If you support international or worldwide operations, you will need to provide product descriptions and interact with customers in languages other than English. Fortunately, this doesn’t mean you need to train up a multi-lingual workforce. With 1440’s Translation Studio, you can convert almost anything into over 100 languages with help from our automatic language detection and translation technologies.
9. Cross-sell and upsell your products
Online platforms are great for cross-selling and upselling, allowing retailers to harness the power of algorithms to make personalized recommendations based on consumers’ shopping habits. According to research by McKinsey, cross-selling can boost sales figures by 20% and profits by around 30%. To make the most of cross-selling, try adding recommendations at the bottom of product pages and checkout pages. You may also wish to offer bundle/package deals or send post-purchase recommendation emails to customers.
10. Build relationships where your shoppers already are
Shoppers use dozens of channels throughout the purchase journey. Be sure your brand has a presence on these channels — like Google Search, Google Maps, Facebook Messenger, Slack, SMS and WhatsApp. With Messaging Studio from 1440, you can design and manage personalized chat experiences across channels in a single platform, giving you the ability to extend personalized promotions, notifications and product recommendations that reduce cart abandonment.
Embrace digital transformation with 1440
Consumer packaged goods management is complex in the best of times. In a shifting economy and increasingly digital landscape, however, it’s never been more overwhelming. Fortunately, 1440 is here to help you with your digital 360 strategies so you can communicate with customers and make strategic decisions that will prepare your company for a bright future. Get in touch with our friendly team or request a demo today!