What are consumer packaged goods (CPG)?
Consumer packaged goods (CPG) are products used frequently by average consumers that need routine replacement and stock restoration. Think items like food, beverages, clothing, cosmetics, toilet paper, and all other household essentials.
As opposed to durable goods, which come with a higher price tag and are produced to last several years (such as electronics, cars, washing machines), CPG have some key features. Because they are essential, daily items and the demand is high, CPG face strong sales, making products fly off the shelves. Generally low-cost items, they are accessible to a wide range of consumers.
As one of the largest sectors in the U.S. economy, and being valued at approximately $2 trillion globally, the CPG market is highly competitive. With numerous brands offering similar products, it becomes difficult for one single brand to stand out above the rest.
The competition of CPG brands is reinforced by the low consumer switching costs, meaning that people can easily move from one brand to its competitor without any significant impact.
Do online reviews matter for CPG brands?
Online reviews have become a valuable factor in consumer behavior, playing a notable role in the decision making process and having the power to sway the consumer opinion. According to a study done by Bright Local, reading others’ experiences with products has become second-nature to consumers, with just 3% stating they have never read reviews.
Consumers need to feel confident that the products they opt for will meet their expectations, making the CPG industry rely heavily on consumer trust. Online reviews, therefore, become especially important and act as social proof. Consumers wish to gain insights into a product’s value and seek reassurance from others before making a purchase. When potential buyers read about other consumers’ positive experiences, it can increase their awareness and interest in the product, strengthening trust and credibility for the brand, and driving action and conversion from the consumer.
Statista states that 43% of consumers believe reviews to be helpful when shopping online and, while positive reviews can drive conversions and ensure potential buyers of a product’s quality and performance, negative reviews can have the opposite effect, prompting consumers to look for alternatives.
To navigate their online reviews, brands need a review management software that has all reviews in one place. FeedCheck offers a comprehensive tool for effective review monitoring, ensuring CPG brands stay connected to their customer feedback and build trust in their product. Explore how FeedCheck can enhance your brand reputation and your customer review management.
How can online reviews shape CPG brand perception?
Not only do online reviews help consumers decide whether to purchase a certain product, but they also take part in shaping the perception of CPG brands in different ways:
- Brand reputation. Companies that actively encourage consumers to share their experiences with their products have the opportunity to shape consumer perceptions. For instance, a negative review does not have to spell disaster; instead, when acknowledging the issue and providing solutions, the brand can demonstrate its commitment to customer satisfaction. Unfortunately, around 75% of businesses simply don’t respond to negative feedback, which can be detrimental to the brand image, affecting trust, credibility, and reliability, in the eyes of both current and prospective consumers.
- Brand loyalty. When people are exposed to positive online customer reviews of CPG brands, they are more likely to develop a sense of trust and satisfaction with the products. Consequently, that turns into brand loyalty, as consumers choose to go back to the same brands that have consistently provided them with satisfactory products and services.
- Competitor analysis. In a market saturated with similar products, consumers use online reviews to compare between different CPG brands and make informed decisions on which products to choose. A brand that highlights its positive reviews is a brand that can easily gain the spotlight in the eyes of consumers.
- Product Development. When reviews bring to light certain issues or challenges people faced, brands can use this insight to their advantage. Products can be adjusted to meet the needs of consumers and make the user experience much more pleasant. Being responsive to your customer’s opinions and requirements strengthens the brand’s reputation as consumer-focused and attentive. Using a review management tool is crucial, as it makes it easier to spot the strengths and weaknesses highlighted by consumers. Contact FeedCheck or book a demo to learn more about our review management services.
The influence of online reviews on marketing and SEO
Online reviews have become an indispensable tool for effective marketing and SEO practices for CPG brands by increasing visibility and sales. Positive reviews act as endorsements to attract new customers and encourage new purchases, while simultaneously boosting the brand reputation.
By fostering a sense of trust and confidence between brands and the audience, consumers are more likely to patronize a business, fostering long-term customer relationships. On a similar note, strong online reviews can help CPG brands gain the competitive edge by allowing them to differentiate themselves from their competitors.
The impact of online reviews on SEO is undoubtedly huge. Encouraging consumers to regularly review products makes for new, but relevant content that search engines prefer, therefore improving search engine rankings and increasing visibility of the brand.
Consumers may naturally use keywords in their reviews, helping align the brand with certain search words that others are using. As a result, the brand increases its chances of appearing in local search results and receives better click-through rates.
How to leverage online reviews for CPG brand building
So now the product is launched, you have integrated a review section, and people are sharing their thoughts. How can you take advantage of the reviews to build and strengthen your CPG brand?
- Highlight positive reviews. If anyone shares a pleasant experience with your product and business, view it as an asset for brand building. Choose compelling quotes that showcase the value of your brand and feature them in your marketing materials, whether that is on your website or your social media.
- Engage with reviews. Featuring positive reviews is not enough to grow your brand, as consumers also pay attention to how businesses act towards their audience, with 88% of people more likely to support a brand that engages with its reviews. Companies need to join in the conversation and thank customers for their kind words, or promptly address any issues or concerns, as ignoring reviews can damage your online brand reputation.
- Optimize for SEO. Incorporate relevant keywords and phrases that your consumers use to talk about your products into your website content, making it easier for your brand to appear in search results. This is easier when you have all reviews in one place with different tools that help you hear your consumers. Book a demo and learn more about our review monitoring and management system.
Conclusion
CPG, as essential, everyday items, are typically low-cost products that see high-demand due to their necessity. As an extremely competitive global industry, the CPG market relies heavily on conversations about products between consumers, making online review monitoring and management a must.
Review monitoring is a proactive approach to brand building and, if implemented correctly, can drive long-term success. This can help them stay ahead of potential issues, stay connected to consumers, and implement their feedback into marketing efforts.
To fully unlock the potential of online reviews, it’s vital to implement a detailed review monitoring strategy. FeedCheck offers the necessary tools and insights to effectively understand and manage reviews, helping your CPG brand succeed.