CPG Marketing: How to Drive Sales with 4 Steps

cpg marketing

The consumer packaged goods (CPG) industry refers to a variety of manufacturers and sellers of products that are typically (packaged in some way) sold through a retailer and used by consumers.

Many times CPGs can include products that customers use on a daily basis such as food, beverages, cosmetics, cleaning products and much more.

CPG Marketing

CPG marketing is shifting in the way brands connect with its customers. According to a study by Cadent Consulting Group, packaged-goods marketers are now spending more on digital advertising than they are on all forms of traditional advertising combined.

In order to keep up with leading CPG (consumer packaged goods) brands, marketers and retailers are challenged to increase their spend on digital advertising efforts and stay connected with the ever-changing digital consumption of customers.

Here are 4 steps in your CPG marketing strategy that can help drive sales:

1. Build the right custom target audience.

In order to get your product(s) in front of potential customers, you need to identify the right people, aka your target audience.

For example, if you’re launching a new line of home technology products, you want to segment individuals who are not only homeowners but also early adopters of technology and home improvement enthusiasts to further enhance your audience.

In addition, you can segment your ideal customers by combining demographic, lifestyle and interests, media preferences, and in-market characteristics. This requires clear marketing goals to decide which individuals would benefit most from your product and powerful data to help identify those individuals.

Once you have a strong customized audience tailored to your product and campaign, you can deliver an optimized media plan to your ideal prospects.

2. Deliver an optimized multi-channel campaign.

In today’s always-on digital world, consumers are constantly engaged across multiple platforms and devices.

With powerful data, you can identify your prospects’ media preferences and effectively reach them on their favorite platforms. Brands who engage with audiences through multi-channel campaigns see incremental sales lift in comparison to a single channel campaign.

According to Salesforce, it takes approximately 6 to 8 touch points before a consumer makes an actual purchase.

Therefore, it’s essential for CPG brands to deliver relevant content to their target audience across media where they are engaging most in order to drive sales – whether it’s through sending email blasts, delivering display ads on web browsers, or sending push notifications on mobile.

3. Measure what works and what doesn’t.

The most important part of the campaign actually takes place after it’s been delivered. Track and analyze which channels attributed to the most engagement and/or sales, understand who from your audience responded to your offer and match the data back to your marketing strategy.

CPG marketing is all about listening to your customers’ responses and gauging your message, product and media outreach based on what worked and what didn’t.

Once you have a better understanding of your customer base, you can strengthen positive brand-consumer relationships and engage similar audiences who resemble your best customers.

4. Enhance your current customer base and acquire new customers!

Building look-alike models is a powerful way to target ideal prospects who resemble your best customers and are most likely to convert.

This allows you to expand your current customer base without having to build an entirely new target audience, media plan and campaign. You are also able to find new prospects who are more likely to convert based on your research.

Measuring, listening and understanding your consumers throughout the flight of your campaign is essential to ensure future campaign success and further drive sales.

To learn how Honeywell, a leading global commercial and consumer products company, followed these four steps to significantly drive sales of their new line of home technology products while lowering their overall acquisition costs, download our case study here.

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