Word-of-mouth marketing has existed long before the digital age, enabling people to discover new products and services from the people they trust most – their friends and family. When influencer marketing began to gain traction amid the social media age, the consumer packaged goods (CPG) industry found an avenue to acquire new consumers through their favorite trusted influencers. The CPG industry has continued to grow, especially in a pandemic, with Nielsen reporting that grocery sales increased by as much as 23 percent year over year in March 2020. CPG brands have a tremendous opportunity – now more than ever – 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 of competitor products to try their brand through creator content and testimonials.
Below, we’ve listed five key reasons why influencer marketing is an important tactic for CPG brands. Read on!
1. The need for household CPG items is greater than ever.
As households everywhere are sheltered-in-place due to the pandemic, the need for household items has grown, and it’s not just cleaning supplies. As the availability of products has been unpredictable, consumers have abandoned brand loyalty – according to data from McKinsey, 75 percent of consumers have tried different stores, websites, or brands through the pandemic. 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 and figure out if you can sway influencers and their audience to try new products through content creation.
2. Social media and creator content influences brand perception.
According to a Facebook and Kantar study, 60 percent of global consumers say that they’d follow a brand on Instagram after seeing it promoted by a creator who shares their values and interests. When brands work with influencers to create valuable content about their products, they not only get access to an engaged audience, they also 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 IGC by repurposing it on your owned social channels while continuing to produce your own brand content to keep consumers interested and engaged.
3. A low barrier to entry for consumers makes it easier to influence purchase decisions.
The value of the product can impact the likelihood of a consumer buying it and in some cases, make them deviate from their normal purchase habits. CPG products are generally less expensive and therefore require low-involvement decisions compared to bigger ticket items such as a car, an expensive appliance, or other high-value products that require high-involvement decisions. 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 giving creators a free coupon or discount code for the influencers to include for their audiences to try your product risk-free.
4. Influencer programs can scale easier.
Some influencer work requires niche, specialized influencers in a given category to make sure the content is authentic. CPG is not one of those categories, meaning that CPG brands have a wide pool of influencers to choose from. This allows brands to leverage the entire spectrum of influence – from mega and macro influencers to micro-influencers, advocates, and loyalists. When brands have a wide variety of creator types to work with, they can adhere to budgets of all sizes and open their influencer pool to everyday consumers, which fuels the ability to scale the program.
Tips for activation: Work with a large, diverse group of creators and optimize over time. Consider segmenting your influencer partners to reach different audiences on different platforms as your influencer practice progresses, while being flexible with requirements and compensation.
5. Product reviews provide powerful testimony.
As consumers are looking to try and switch to new products, one of the most powerful and convincing tools are consumer reviews. When working with a platform like Mavrck, brands can not only generate influencer content, but also solicit product reviews to be syndicated across ecommerce. We call this social proof. This is especially important as ecommerce for the CPG category grows and studies show that 93 percent of consumers say online reviews have an impact on their purchase decision.
Tips for activation: Work with an influencer platform like Mavrck to add product reviews to your influencer marketing activations. Engage micro and nano influencers to produce product reviews at scale to syndicate to your ecommerce websites. For examples of how a CPG brand is successfully creating reviews at scale, check out our Charmin case study.
Influencers and CPG brands are a match made in marketing heaven. Explore the different ways you can activate influencers through content creation, resharing and repurposing of that content, and generating product reviews to convince new consumers to purchase your CPG products. If you’re interested to know how Mavrck works with CPG brands to run successful campaigns at scale, read through our CPG case studies here.