Large CPG brands are leaving hundreds of millions of dollars on the table. Here’s how Blue Bite can help.
April 29, 2020
It’s no secret that ecommerce sales skyrocketed last decade, and CPG brands were not left out of this growth. However, large CPG brands are not keeping up.
The Boston Consulting Group (BCG) puts it bluntly:
Online sales grew rapidly from 2013 to 2018—19% annually versus the anemic 1% growth rate of in-store sales. All told, e-commerce now accounts for 40% of the growth in CPG retail sales. The problem: large CPG companies continue to lag in e-commerce, posting weaker performance in the online arena than they do in the offline.
The consulting group is even more blunt about the resulting losses: “This translates into hundreds of millions of dollars in lost sales opportunities.”
CPG ecommerce opportunities evolved even more during the 2020 pandemic. Mondelez International reported “unprecedented demand” in ecommerce during the time, and worked to meet that demand. The company anticipates a good portion of the ecommerce demand to remain after the pandemic.
There is a huge opportunity for large CPG companies to get ahead of the curve and stop leaving those aforementioned hundreds of millions of dollars on the table. One way to increase CPG ecommerce sales is to use smart packaging to connect directly with consumers, opening a direct product commerce channel that was previously unavailable.
When you digitalize CPG packaging, Blue Bite empowers you to create product commerce — the ability to sell directly to consumers through your products.
Here’s how it works: when consumers purchase CPG products, they scan a QR code on the packaging. The resulting Blue Bite experience offers a simple, one-tap way for these customers to rebuy the product and purchase related products — directly from the CPG brand.
Brand loyalty is of utmost importance to CPG brands, but extending that loyalty to ecommerce and direct purchasing is something many brands struggle with.
Blue Bite helps with that, too. With the same digital experience that powers product commerce, brands also establish a direct relationship with consumers, one that wasn’t previously available because products were sold through retailers.
For example, when Intersnack launched new chip flavors for its funny-frisch brand, they used a Blue Bite-powered gamified experience to encourage consumers to try other flavors. The experience resulted in not only awareness for the new flavors, but additional sales and a better and closer connection between brand and consumers as users registered their information to win prizes.
Blue Bite experiences also offer CPG brands insight into how their products are used. When consumers scan QR codes, brands see where and how often their products are interacted with, providing new data beyond the sale they weren’t privy to before.
When consumers register for contests, gamified experiences or other incentives, CPG brands have direct consumer information not previously available. This is used to further strengthen and grow that direct connection and, consequently, lifetime value and relationships.