Why Social Media is Essential for CPG Companies
Traditionally, consumer goods market themselves. We live in an age where product packaging is essentially a science, where innovative designs lure consumers in, and where hundreds of items perfectly positioned on shelves vie for your attention. But in our evolving digital world - where an astounding 30,000 new consumer goods hit the market every year - social media is a necessary tool for CPG companies to drive brand awareness of their products.
The Basics
Prior to the takeover of technology and social media as branding tools, CPG companies relied on the physical world to market their products – that is, the use of print advertising and interacting with consumers at the supermarket or point of purchase. Fast-forward to today, the customer decision journey no longer begins when a consumer enters a store. It begins digitally, which is why it is vital to engage consumers at every touchpoint of the decision-making process. In addition, the proliferation of online retailers has swayed purchasing behavior immensely. Specifically, it has led consumers to take to a digital battleground to both research and purchase their products. With a growing amount of both private-label brands and popular name-brands, competition among CPG companies is higher than ever. One-way content marketing like emails and banner ads are no longer adequate - instead, consumers are seeking personalized, highly interactive digital experiences.
How can you go about creating social media content that best aligns with your business? When you are considering how to leverage your digital presence to build awareness of your products, you should consider social media as an extension of your brand’s personality. This could mean employing a variety of different tactics, including user-generated content, humor or the encouragement of social conversations among consumers. Below, we will discuss how CPG giants have harnessed the power of social media to achieve great successes.
Utilizing UGC
For user-generated content - UGC for short - let’s use Coca-Cola as an example. This beverage giant personalized their soda packaging with the renowned “Share a Coke” messaging, encouraging millions of consumers to filter through products to find their name or the names of their friends. But Coca-Cola didn’t stop there. To integrate social media into the mix, they introduced the #ShareaCoke hashtag, which provoked their growing fan base to post photos and discuss the well-received “Share a Coke” products on social media. Not only did Coca-Cola effectively utilize UGC, they humanized their brand - which is why it's no coincidence they experienced a 2% increase in revenue and gained 25 million new Facebook followers that same year.
Timely Messaging
Though widely used by CPG companies, UGC is not the only effective social media technique. In fact, several brands have had success harnessing their owned content to drive brand awareness. Take Oreo for instance. The beloved cookie company has made serious leaps in transforming humor into a mainstream marketing technique. During the Super Bowl power outage of 2013, Oreo combined humor with a perfect-timing scenario to effortlessly – and cheaply – promote their brand using social media. Its claim-to-fame, quick-witted tweet featured an Oreo against a shadowy background with 7 words: “You Can Still Dunk in the Dark.” Retweeted 10,000 times in just the first hour, this tweet positively positioned Oreo in the minds of many consumers.
Driving Conversation
Sure, engaging content is important, but social media also goes a long way in driving social conversations. This is closely tied to a concept called social listening - a method of monitoring online channels to see what consumers are saying about your brand. Many CPG companies have demonstrated the value of transparency in the digital world by swiftly responding to consumers by way of social media. Averaging a response time of 2.5 hours to address their customer concerns, Kleenex is a leader in encouraging social conversations. In some instances, Kleenex has even taken the time to personally respond to followers that mention their brand name. This is an extremely important takeaway for other CPG companies on the value of social listening.
Key Takeaways
All in all, CPG companies need to focus on authenticity when developing a digital marketing strategy. The most important step to doing so is research – research of up-and-coming digital trends, research of the competitive landscape, and most importantly, research of the target audience. In this world, knowledge is power. Equipped with market intelligence, you can confidently interact with your consumers using social media – and provide them an interactive experience that will leave them choosing your brand over the thousands of others lining the supermarket shelves.