When looking at the factors influencing buying decisions specific to CPG brands, brands should focus on three particular elements: price, perceived quality, and loyalty. In some way or another, one of these three will always impact a consumer’s decision to buy, or not buy, a product. While these factors may seem difficult to navigate, there are several marketing strategies that brands can use to gain a competitive edge.
There are some things that CPG brands simply cannot change about their products, even if those factors are the reason consumers aren’t making purchases. However, even these issues can be overcome with the right strategic partnerships and campaigns. Brands should analyze price, perceived quality, and loyalty to find their weaknesses when compared to their competition, and also to highlight their strengths when trying to gain market share.
Overcoming Price as One of the Factors Influencing Buying Decisions
Pricing is one area in which many CPG brands face challenges. Consumers who are solely price-focused will often choose store-brand items, as these are typically marked at the lowest price. However, brands can find comfort in the fact that this represents a small number of consumers. In fact, only about 18% of shoppers make purchase decisions solely based on price.
When dealing with price-focused customers, one option to consider is a rewards program. CPG brands often leverage third-party apps, like Shopkick, to connect with these savings-savvy consumers, while also eliminating their dependence on discounts. Brands can offer consumers rewards points (or, in Shopkick’s case, kicks) to incentivize them to seek out items in the store. This connects the brand with the price-focused audience while eliminating dependence on discounts.
Improving Quality Perception With Content Marketing
Content marketing is critical for connecting with consumers who are focused on quality. Brands need to show these consumers why their products are better than those of their competitors, so marketing is the crucial component. Content marketing, where brands present themselves as leaders in their categories, goes a long way towards improving consumer perception of a product.
Reviews are critical for establishing a reputation for quality. About 77% of shoppers have used their mobile device to get product information as they were in the shopping aisle. This means brands must practice online reputation management even for brick-and-mortar sales. This can be accomplished by maintaining a reliable online presence and resolving consumer questions and complaints rapidly.
Brands can also work with influencers within their target demographic to form sponsorship deals and to spread positive reviews of products as part of a brand marketing strategy. Consumers trust the opinions of these influencers. If they state a product is high-quality, this will help other consumers make the decision to purchase.
Leveraging the Impact of Life Events on Consumer Purchase Behavior
Often, consumers choose products out of loyalty. This segment presents a particular challenge for marketers as it can be incredibly hard to get a consumer to give up a brand they trust for a new one. While brands typically turn to discounts and other incentives, another option could be to rely on timing to connect with the consumer.
Consumers going through major life events are more likely to change brands as they establish new routines. For example, a consumer who has just had a baby, or recently graduated college, will have different needs than they did before the event. Brands can step in to fill those needs and potentially pull in a new loyal customer.
The top factors influencing buying decisions all center around price, quality perception, and loyalty.
Data plays a critical part in any life event-based marketing strategy. Brands can work with third parties to gain voluntarily disclosed data on consumers who may be approaching a significant milestone. Digital platforms like social media, mobile apps, and rewards programs are all potential sources of this information. By working with these platforms, brands can leverage certain life milestones to target and connect with consumers in that demographic.
This strategy also allows an opportunity for personalization. Brands can send out event-based marketing packages to consumers, addressing them by name and offering a personalized congratulations on their milestone. Whether the consumer is getting married, having a baby, or buying their first home, these messages anchor the memory of the brand with that positive life event. This strategy spurs positive brand awareness and potentially, future loyalty.
The top factors influencing buying decisions all center around price, quality perception, and loyalty. By addressing these factors specifically through marketing strategies, brands can improve the likelihood that they’ll be able to connect with consumers as they shop. Using strategies like content marketing, rewards programs, and life event-based marketing, brands can use the factors that influence purchases to increase their market share.
Shopkick helps our partners leverage the factors influencing buying decisions in the shopping aisle through the use of our mobile apps. For more information on adding our app to your marketing mix, contact us.
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