3 Tips for Increasing CPG Ecommerce Sales
CPG ecommerce sales accounted for $175 billion in revenue in 2020. Prompted by the pandemic, it’s an avenue that CPG brands are increasingly keen to explore.
Offering a direct-to-consumer (DTC) ecommerce service means CPG brands can build their brand away from retail platforms. They also get to know their customers better, gathering valuable data that informs both their marketing and wider business strategy.
But getting those customers to actually browse your site and buy your products is easier said than done. Online competition is fierce—with other CPG brands and big online marketplaces clamoring for your target market's attention.
So what can you do to increase CPG ecommerce sales? Here are three easy-to-implement tips to get your online cash register ringing.
How to boost your success in CPG ecommerce
1. Optimize your social media marketing funnel
You’re probably already familiar with the concept of a customer funnel. It’s the journey a customer takes as they identify a problem and then move closer towards choosing and buying your product in an effort to solve that problem.
A social media marketing funnel supports that journey by recognizing customer feelings and creating appropriate content for each point in the funnel. Let’s take a look at the four stages in the customer journey and which content you should be using.
Customer mindset: They are exposed to your brand, possibly for the first time. They may not be able to properly describe the problem they have.
- Links to your informative blog posts to highlight industry authority
- Infographics, GIFs and videos that catch your attention
- Industry-related content from influencers and industry experts.
Customer mindset: They understand their problem and can decide between potential solutions.
- Posts that highlight product USPs
- Live streams to answer FAQs about your product
- Buyer tips and guides
Customer mindset: They are happy that you can provide what they need, and are in need of one final push to make a purchase.
- Customer testimonials and reviews
- Free taster or trial offers
- Discounts and special offers
Customer mindset: They have already made a purchase but may buy again, and may even become a brand ambassador.
- User-generated content challenges
- Exclusive content
- New product updates
By using your social media marketing funnel to create content for every stage of the customer journey, you build engagement and boost CPG ecommerce conversions.
2. Make it easier to pay
Visit a few CPG ecommerce sites and you’ll find a range of different ways to pay for products. As well as debit and credit card options, customers may have the option to pay using Paypal, Apple Pay or Google Pay (amongst others).
Pick payment methods suited to your market’s location
Payment method preference varies depending upon which market you’re trying to reach. For example, in North America debit and credit card transactions are more popular than mobile payments. The same is true of European markets.
However, in Asia—particularly in China—adoption of mobile payment is high. Mobile payment platforms like Alipay and WeChat dominate the market. For customers in China and neighboring countries, being able to pay via these platforms is essential.
Pick payment methods suited to your market’s age
Whilst the western world is yet to demonstrate the same excitement for mobile payments as Asia, there’s no doubt that things are moving in that direction. Younger generations, more comfortable with tech than their parents and grandparents, are more likely to use card-enabled digital wallets.
As a result, over half of US merchants polled by J.P. Morgan said that they were planning to accept digital wallet payments – via providers like Paypal, Google Pay and Apple Pay—within the next year.
Offer as many different payment methods as possible
The average cart abandonment rate is just under 70%. Anything you can do to remove barriers in the way of a sale—like making it easy for a customer to pay with their preferred payment method—is well worth your time and effort.
Give as many payment options as is feasible to create a seamless, stress-free shopping experience for your CPG ecommerce customers.
3. Use integrated shopping networks
For small CPG ecommerce brands, social media is an important (and effective) marketing channel. If you’re already putting time, effort and ad spend towards promoting your brand on social media, you should also be making the most of integrated shopping functions.
More than 50% of shoppers surveyed by Hubspot had purchased a product directly from at least one social media platform. Let’s take a look at a few of the most popular options (and a newcomer to the scene).
The Facebook family of stores helps brands to create a mobile shopping experience within the Facebook, Instagram or WhatsApp platforms. Brands can upload their products, customize the appearance of their store and create product collections that help customers to browse more easily.
Customers simply click View Shop to view your products. They can then add them to their cart and checkout directly from a Facebook Checkout page.
Instagram shoppable posts
Brands can run Instagram Stores in addition to Instagram shoppable posts. This feature directs a user from content—in your Instagram feed, stories or reels—straight to a product page. This means you can showcase your products and then allow users to buy them—all from within the Instagram app.
TikTok x Shopify
Brands who sell on Shopify will soon be able to integrate their ecommerce offering with their TikTok profile. They’ll be able to sync their product catalogs to create a mini store-front on the TikTok app. As with Instagram shoppable posts, TikTok users will soon also be able to tag products in videos and direct users straight to a product page.
These social networks offer integrated shopping capabilities. Rather than simply directing customers to your website via a link on your social media page, customers can browse, shop and pay from within the platform. Fewer clicks equals less friction and more chance of customers completing their CPG ecommerce purchase.
Want the latest CPG news? Head over to Buffalo Market blog for more great industry insight.