Influencer Marketing Helps CPG Brands Thrive. Here’s Why.
Word-of-mouth marketing existed long before the digital age. It enabled people to discover new products and services from their most trusted circle, which typically comprises friends and family. As influencer marketing gained traction during the new social media age, the consumer packaged goods (CPG) industry found an avenue to acquire new consumers through a new trusted group of its consumers’ peers: content creators and influencers.
But first, what is CPG? Products in the CPG industry include items like food, beverages, cleaning supplies, sanitary products, cosmetics, and more. Simply put, a consumer-packaged good is something that the average consumer uses on a daily basis and therefore needs to be frequently replenished.
The CPG industry experienced substantial growth in the social media age, especially during the pandemic when certain goods like toilet paper, hand sanitizer, disposable masks, and more were in demand — and at times, hard to find. Nielsen reported that grocery sales increased by as much as 23% year-over-year (YoY) in March 2020, and it remains true that supply chain issues still have a psychological impact on normally rational shoppers.
More than ever, CPG brands have a tremendous opportunity to collaborate with influencers to boost their presence on social media, where consumers are more likely to learn about new products and brands. Influencer marketing also allows CPG brands to persuade brand loyalists from competitor products to try their products and services through creator content and testimonials.
Let’s dive into five key reasons why influencer marketing is an important tactic for CPG brands.
5 Reasons Why Influencer Marketing Is An Important Tactic For CPG Brands
1. There is a constant need for household CPG items.
When COVID-19 was at its peak, the national shelter-in-place mandate highlighted a crucial need for groceries and cleaning supplies. Though this mandate has been long retired, the need has not disappeared — and many folks have continued to stock up on essential items to prepare their households for future potential shortages.
Still, many shoppers have noticed that their favorite grocery and home brands have dwindled in stock since the pandemic as supply chain issues persist worldwide. Brand loyalty in this industry has dropped as shoppers prioritize products that are available as opposed to the products they know. Therefore, we believe the time is ripe for brands to attract and retain new customers via influencer marketing.
Tips for activation: Work with influencers to understand why they choose the products they do by collecting feedback via surveys. Use this feedback to figure out if you can sway influencers and their audience to try new products through content creation.
2. Creator content makes a big impact on brand perception.
According to a Pew research study, about 30% of adult social media users say that they have made a purchase after seeing a creator post about a product or service on social media. Additionally, 42% of social media users say that creator content impacts their purchasing decisions. When brands work with influencers to create valuable content about their products, they get access to an engaged audience and unlock the power of trust between the influencer and their following.
Tips for activation: Don’t let your influencer activations end with content creation. Leverage influencer-generated content (IGC) by repurposing it on your owned social channels while continuing to produce original, engaging brand content.
3. Purchase decisions are influenced by a low entry barrier for consumers.
A product’s value can impact the purchase likelihood. In some cases, perceived value can convince consumers to deviate from their regular purchase habits. CPG products are generally low-cost and therefore require low-involvement decisions compared to bigger ticket items such as a car, an expensive appliance, or other big investments.
Because of this, consumers can be swayed or convinced to make impulse purchase decisions on CPG products. These decisions can be influenced by limited information or top-of-mind awareness from seeing a favorite influencer post about the product.
Tips for activation: Consider asking creators to share a discount code or promote try-before-you-buy access so that their followers can demo your product risk-free.
4. Influencer programs are easier to scale.
Some influencer programs work best when activating niche influencers in a specific industry to ensure authentic content. CPG is not one of those categories. This means that CPG brands often have a broad influencer pool to choose from. This variety allows brands to leverage all types of social media influencers, including mega-, mid-tier, macro-, micro-, and nano-influencers. It also gives brands access to an additional cohort of loyalists, referrers, and advocates.
When brands have a wide variety of creator types to work with, they can adhere to budgets of all sizes and open their sponsorship opportunities to everyday consumers, which fuels the ability to scale the program.
Tips for activation: Work with a large, diverse group of creators and optimize the selection process over time. Consider segmenting your influencer partners by specialty, follower count, and engagement rate to reach different audiences on different platforms as your practice progresses. Don’t forget to be flexible with requirements and compensation, and always put communication first!
5. Product reviews provide powerful testimony.
Since more consumers are open to trying new products, one of the most powerful and convincing tools a brand can utilize immediately is consumer ratings and reviews. When working with a platform like Mavrck, brands can do more than source and activate the right content creators for their campaigns; they can also solicit product reviews and syndicate them across active ecommerce initiatives.
This practice supports something we call social proof, which simply means that consumers are more likely to see the value in something that is promoted by someone they trust. In fact, social proof is especially relevant to the CPG industry as studies show that 93% of consumers say online reviews have an impact on their purchase decision.
Not only that but micro- and nano-influencers are also the keys to long-term brand loyalty. Some experts suggest that these influencers are more likely to be engaged with their audiences and have the power to influence at a greater level.
Tips for activation: Work with an all-in-one influencer marketing platform like Mavrck to add product reviews to your creator activations. Engage micro- and nano-influencers to produce product reviews at scale to syndicate to your ecommerce websites.
Start Marketing Your CPG Products with Influencers
Influencers and CPG brands are a match made in marketing heaven. The market is ripe with opportunities for brands to reach consumers with impactful creator content and testimonials, all of which can be scaled for widespread success. And it doesn’t have to stop there — look for engaging ways to repackage and repurpose top-performing, high-quality IGC. Plus, don’t forget to start generating product reviews to convince new consumers to purchase your CPG products.
Need more proof? We admire your discernment — and we’ve got the goods. Check out these stories about how Mavrck helped CPG brands level up their influencer marketing programs.
Learn more about influencer marketing:
- Influencer Marketing by Vertical: CPG
- Guide to Ratings & Reviews
- Why You Should Activate Hundreds of Influencers at Scale and How Mavrck Makes it Easy
- Influencer Marketing Platforms: 6 Key Areas of Functionality