Consumer packaged goods (CPGs) are in constant flux. CPG companies’ relationship with consumers is affected by changes in customer demographics, an increase in online product research, and uncertainty about retail shelf space. A trend of missed opportunities and connections characterizes this sector.
Maintaining strong relationships with customers and collecting the correct metrics is essential as the CPG industry evolves. Consumer goods brands need to adapt their customer service and communication strategies in order to make informed decisions in the current market. Social intelligence is a valuable tool to gather market insights and improve marketing activities.
Some CPG brands are already incorporating social data into digital strategies with success, but the majority have not yet included social in their marketing and research mix. They need to do it soon.
It isn’t easy to create a social media plan from scratch. If the focus of the project is wrong or the KPIs are not clearly defined, it can be ineffective. Social intelligence, when done correctly, can be a valuable tool for strengthening customer relations, gaining valuable insights, and helping business professionals make better decisions.
Beyond Content Distribution
CPG companies often view social media as a simple channel for content dissemination, failing to realize the important role that social intelligence can have in their business and marketing strategies.
Social media is capable of much more than just content distribution. Social media allows you to communicate directly with your customers and develop personal relationships. It is also an excellent tool for gathering consumer and market insight (CMI).
Brands should also avoid isolating their social media efforts. It is important to examine the many ways that social insights can be used across departments, including those involved in inventory planning, customer service, and campaign management.
Leading CPG companies use social intelligence in three different ways:
Benchmarking Business Objectives
Brand health measurement
Market research: Using consumer insights
CPG companies must be aware of the three initiatives to get full value out of their social intelligence strategy.
Benchmarking business objectives
Social media is a great way to benchmark your business goals, especially for CPG firms. Social data can be used to measure a wide range of metrics, even if the plans vary between brands or departments.
Comparing the overall share of voice online with competitors can help companies gauge differences in volume and context. These results can help marketers adjust their current campaigns and future initiatives in order to increase brand recognition.
Smaller niche brands, which serve a specific purpose or are aimed at a particular demographic, should also measure their success based on their goals and KPIs.
So, for example, a brand of organic skincare with the business goal of dominating the “natural” or “organic” discussions can segment data online by these adjectives and feelings. Hence, they only analyze the relevant conversations. This benchmarking method is ideal for CPG firms with specific social missions. Analysts can focus on the conversations that matter and not track larger brands.
Measuring Brand Health
CPG companies can use social data and analytics in a number of ways. Measuring the health of a brand and conducting consumer surveys are two easy methods. These types of analyses are usually conducted regularly or over a certain period, e.g., monthly. The research process can be simplified by using the same data search to measure the benchmark again and again.
These searches can be used to show the changes in conversation surrounding a particular brand over a certain period. These reports, once generated, can be used to create more detailed market research.
Gathering consumer insights for market research
CMI research has benefited greatly from the use of social media. Social consumer and marketing analysis can give deeper insights into brand health and overall trends and can be used to answer research questions.
Although only a small number of CPG companies conduct this kind of Research, social listening and analytics provide results that are both informative and beneficial for the business.
The two main formats of this type of Research are:
Exploratory Research is an ethnographic method based on data. This method is based on the fact that there are no preconceived hypotheses and that the social data can be used to provide valuable insights without spending much time or money. A good example is to look at the demographics behind people who are discussing a product or brand and then proceed to discover unexpected insights.
To answer the “why” questions, Research with a goal. This method is used to test or answer a question. As an example, “Do people wash more clothes in the summer or winter?”