The Concept Of Virality And How It Is Crucial For Your Inbound Marketing Campaign
Jun 27, 2016
Jun 27, 2016
10 min read
10 min read
Internet today is filled with so much of information and sometimes trashy information that it becomes hard for information seekers to get the best results. Viral marketing is any marketing technique that induces the websites or users to pass on the marketing message to other websites or users, creating an exponential growth in the message’s visibility and effect. As social sharing has accelerated at an exponential growth over the last few years, so too has some of the websites and enterprises that have learned to leverage the full scope of social. One of the noteworthy example of such sites is BuzzFeed that has tripled its monthly visitor count over the last two years, from 4.3 million to 19.3 million. Clearly, BuzzFeed has tapped into something important to the domain of marketing that’s fuelling its massive growth. This method is known as Viral marketing, and you can replicate this method too for your business.
Reasons Behind BuzzFeed’s Marketing Success
1. Audiences Most Crucial to Business Are “Bored”
The target audience that is most crucial to their business are “bored at work”, those who have jobs and have ample of time to browse the internet without supervision. Such audiences are typically looking for content that:
- Will alleviate boredom
- Will connect with their current frustrations in life.
Another kind of audience that emerged were the consumers who use content on their mobile phones while waiting. It was found that it was this audience that was the principal driver of social sharing.
2. Certain Content Types Defined in Viral Marketing
Though these categories may not be the same for your business, BuzzFeed identified some of the content categories that were an immense success for it. These include:
- LOL: Humorous content
- Win: Content that the audience finds to be very useful, ingenious or admirable
- OMG: Content that shocks the audience
- Cute: Self-explanatory, generally animal-based content.
- Trashy: Content that makes people feel better by mocking the failures of others, especially the famous.
- Fail: Content that points out the failings of the society or individual, let’s the audience vent their frustrations.
- WTF: Bizarre or strange content that triggers the curiosity in the audience.
These are some of the examples of content types that you can use for brainstorming your content. The most important question that you need to ask yourself is “ how will this content make the readers react?”
3. Self-Identification is Important For People
It might seem logical to many business owners, that making content targeted broadly at their audience will work, but this might not be always the case. Targeting a specific audience can sometimes be extremely successful. For example, BuzzFeed utilized such an article by aiming: “ 21 problems All Sarcastic People Understand”, which has reached 5.5 million views since May 12, 2014. This type of post particularly attracts people who believe they have a certain characteristic, experience or opinion-- in context of this article people related themselves as being sarcastic. Such posts generate interest from a lot of like-minded people, who then share it with more like-minded people, which leads to exponential growth in pageviews.
4. Social Activism Can be a Key Driver Too
It is not always the cat videos or funny things that can go viral, it turns out people also has an emotional connect towards the society. People also share content they are passionate about and want to spread ideas and their own views about it. Because they have an emotional response after reading or viewing the content, they want to share this information as well as show others that they care about the real issues and follow the news stories of the day.
5. Being Human!
While juggling for so many strategies and objectives when creating content, you must not forget the most important criteria to include: making your content human. By this we mean, you must focus on the human aspect of stories-- forgetting this can make your content look robotic. While creating content, ask yourself this: “why would people want to read this?” Or even better “why would you want to read this?” Some of the examples cited from Upworthy are:
- Mind blowing stories based on science fact
- Stories featuring true human moments
- Stories depicting the win of good over evil
Top Five Mistakes To Avoid While Marketing Your Product On Amazon
Amazon is a leading e-retailer across the globe. It has more than 200 million prime customers and over 9.7 million sellers. These figures can be relaxing for Amazon, but not for the millions of its sellers. The traditional retailers on Amazon struggle to sell their products because of this huge competition. Only a few retailers are garnering significant shares of Amazon marketing; the rest are just struggling to boost their sales. However, colossal competition is not only the reason for low sales; there are other reasons, too. If you are also facing low sales, you should look into the top five mistakes hurting your sales on Amazon. Top 5 mistakes to avoid when selling on Amazon 1. Having no strategy for fulfillment This is one of the major mistakes made by sellers, which leads to costly and late fulfillment. Since Amazon is one of the platforms that promise their customers quick and on-time delivery, failing to do so can make your brand's reputation bad on Amazon's lense. Source: Unsplash Most customers even choose prime membership of Amazon for free, 2-day shipping. If they don't receive the product on time, they can leave poor reviews on your product page, which will affect the overall sale. But how are some merchants able to do fulfillment on time? Well, they use Fulfillment by Amazon (FBA), an Amazon program that helps third-party sellers ship their products on time. As per Statista, 73% of top Amazon sellers were found to utilize FBA in 2018 in the U.S. FBA is a storage and shipping service that helps businesses like you sell their products. Afterward, Amazon handles the rest of the job, like receiving, picking, packaging, and shipping the product to your customers. When you consider using FBA, your products will even get the FBA logo, which will create trust among the customers that the company will deliver the product on time. Along with this, you need to have a well-versed pricing and fulfillment strategy so that you can ship the order on time. These two factors are crucial to master and win the Amazon Buy Box. Analyze your competitors to know their pricing and then do your math to offer the best price to your customers while saving a significant margin for yourself. Also, set up a team to ensure that products are dispatched on time. 2. Incorrect or incomplete product details and description Amazon has a set of criteria to rank a product on specific terms (keywords). If your product description contains those keywords, the Amazon algorithm will detect them to know about your product and rank accordingly. However, other factors can influence the ranking, like rating, reviews, etc. Also, a good product description gives customers the complete detail of the product, which is necessary to earn their trust. Since they cannot touch the product, they rely on the product description and visuals. Providing complete information and attractive visuals gives confidence to your customers to buy your products. But most sellers provide incomplete and incorrect information about their product, which affects the brand's reputation. People don't want to purchase from a brand that does not provide complete and correct information about their products. Are your product descriptions incorrect and incomplete? It is a tedious task to manage the product data of hundreds of products. But there is a solution to this problem, i.e., ERP (Enterprise Resource Planning) or Point of Sale system. This software helps you with the multichannel listing, allowing you to list your products according to Amazon criteria. You can also hire a company that provides Amazon marketplace service, like Saffron Edge. Our team will help you manage your store and list your products on Amazon with the complete and correct information that can help you convert. 3. Fail to run Amazon advertisements correctly If you are not seeing any growth in your sales even after running Amazon advertisements, the advertisements are not on the right path. Most sellers make mistakes while preparing ad campaigns, losing their money there. But what are these mistakes? Not having a strategy: Every good ad campaign begins with a robust strategy that includes analyzing competitors' strategy, including rich keywords and utilizing negative keywords (words or phrases you don't want to show for). Poor account structure: Structuring the Amazon advertisement structures is crucial because it determines how your products will be categorized. Lacking the proper structures can lead to inaccurate reporting. It's best to use detailed categorization methods so that you can group similar products in the same ad campaign. Not using all ad types: Many sellers run advertisements with just one ad type, which is a mistake. Since not every customer treats the ad the same way, diversifying your ad types will work for you. Lack of testing: Testing is the key to success. Good advertisers always test out different strategies and evaluate the performance. That lets them know what is working and what ad campaigns drive more leads. 4. Overselling To successfully sell on Amazon, a seller needs to manage their inventory. This one side helps the buyers to know whether the product is in-stock. On the other hand, it allows sellers to fulfill their stock on time. Proactively managing the Amazon inventory also helps sellers to avoid overselling, which can cause your account to be penalized. Amazon takes overselling very critically because it doesn't want to tell its customers that it can't ship an item they bought because it is out-of-stock. How to fix this problem? It's best to utilize integration software that helps you manage real-time inventory across multiple channels. It allows you to sync inventory levels to take necessary steps before an item goes out of stock. Source: Freepik 5. Not leveraging customers' ratings and reviews Customer feedback has a significant impact on business growth. They can go either way for the sellers. Poor reviews and ratings can lead to distrust and loss of sales, while stellar reviews can bring more deals to your desk. As per a report, 90% of customers read online reviews before purchasing a product from a brand. It shows how important it is to get excellent feedback from the customers. That not only creates trust among your customers but also helps you rank on top. But how to leverage customer reviews? The best way to increase customers' reviews is by asking them to give feedback. Follow-up a purchase and ask to leave feedback if they are happy with your product. However, you may also get bad reviews, but don't panic. Take time, understand why they are unhappy, and try to fix the problem so that your customers can feel that you give importance to their feedback. Takeaway! Amazon is a big marketplace for sellers like you. But you need to be very careful while listing your products and avoid some mistakes to succeed. Make sure you test and follow effective strategies. And if you find you need help to manage your Amazon marketplace and kickstart your sales, reach out to us. We will help you achieve your full potential to boost your growth. We have the best marketing strategies driven by customer-focused data that give you an edge to compete against other sellers and leverage your store. Get in touch with our experts! They will provide you with a glimpse of our services and audit your marketplace so that you can give a new direction to your business from today! ...
read more
Gear up for Google’s New Algorithm Update: Page Experience 2021
Google has recently announced an upcoming update to its existing search algorithm as page experience in 2021. You might ask what’s so new in this as Google is known for releasing around 400-500 updates along with fixes for its search algorithms each year. Well, this is a well-known fact, but it is the first time ever that Google has announced an update that will be taking effect in the coming year. Usually, Certified SEO professionals get to know about the algorithm updates only after they have been implemented by Google. The new update termed as Google Page Experience Update is being touted to change the whole scenario of Search Engine Result Pages (SERPs). The rankings of the pages will be altered by this update because the new algorithm will rank the web pages based on the user experience. This means the websites that have been indexed for poor user experience by Google are much prone to lose their current rankings. This new metric of page experience is going to be a game-changer for most of the website owners and administrators. What Is Page Experience? Google wants to make the user experience much more refined and smooth. To attain this goal the new metric of page experience is being introduced. Google defines page experience as the metric to decide how the users perceive the experience of interacting with a web page. There has been no official list of terms that affect the user experience of a website but considerable factors that may affect it are the speed of a web page, its affinity with HTTPS, mobile-friendliness, and the placing of ads. The pop-ups and display ads that spring up while surfing a page also determine the user experience score of a webpage or website. Why Is This Update So Important? As it is clearly evident that the parameters of the new algorithm are dependent on many existing metrics. So why is this new update being considered in such high regard? Being a user-centric platform, Google is devoted to refining the search metrics so that the end-user can have the best possible web surfing experience. And the blunt truth is that the users do not care about the number of backlinks that you have provided on your webpage or whether the page has an indexed code or not? While these features may provide the users with some additional accessibility, they are still not the sole focus of the user when browsing your site. Ask any link building specialist, and they will tell you that backlinks are for strengthening the on-page SEO and not for improving the user experience. Looking at the online marketplace through this lens levels the playing field for big brands as well as small and medium-sized business owners. You already know the impact of a brand name on its SEO. For instance, take a look at the SEO ranking graph of Neil Patel. Over time the SEO ranking for his websites has gone up. This increment is due to the ever-growing brand popularity of Neil Patel. He has converted his ad agency and his name into a well-known brand in the field of digital marketing. But Google is trying to change that with this new update. Google is aware of the fact that most of the online business owners do not enjoy the benefits of having a big brand. With this update, Google aims to give the sites a chance to grow its traffic irrespective of their brand name and brand value. This is being done to create a sustainable environment for the website owners, where everyone can grow their business. How to sustain and improve website performance in 2021 With every new update, a race to achieve the top rankings is commenced. This update is no different. There is no need to panic as Google has notified about this update months prior to its release. Based on the considerations that Google has indicated in its official announcement, here are the key pointers that will help you sustain and improve your website performance in 2021: Content is still the king Content is still the backbone of your whole web presence. Ensure that relevant content is being provided to the end-users. Without content, there is no audience. The quality of the content must be top-notch. Invest in a good content marketing strategy and build your content around the keywords that your users are mostly searching for. Hire an SEO specialist for a good content marketing strategy. Mobile is the way to go Certified SEO professionals advise creating a mobile version for every website. Google also rolled out an update for this way back in September last year. The update requires every website owner to have an AMP version of their website. The AMP helps the web pages to load faster on a mobile device. Also, make sure that your website’s interactiveness is as good on mobile as on desktop. Say nay to pop-ups Pop-ups are considered to be intrusive for smooth user experience. They also hamper the SEO rankings and many certified SEO professionals advise against using them. So it is better to avoid pop-ups on your web pages. If it is almost necessary to place a pop up make sure that the pop up does not cover the majority of content on your webpage. Steer towards providing a safe browsing experience The optional choice of incorporating HTTPS into your domain has now become mandatory for every website. HTTPS was introduced in 2000 to provide a safe browsing experience to its users. And from 2006 onwards Google has been pushing its usage actively. With the increasing number of cyber threats, it has become necessary to use HTTPS. Additionally, it also affects the ranking of your page on the Search Engine Result Page (SERP). Conclusion With every new update, Google tries to make the virtual experience better and safer for its users. This update is a culmination of the updates that Google has rolled out in recent years. You will need to adapt to the same or else you might lose your ranking. If you are well aware of the metrics, then you do not need the services of a certified professional SEO. But in case you need to hire an SEO specialist, then you can contact us. We have SEO specialists and link building specialists that will help you to rank higher in the SEO rankings. ...
read more
How is the DTC Food and Beverages Industry Moving in 2024?
In the food and beverage industry, the Direct-to-Consumer (DTC) model revolutionizes how products are procured and consumed. Unlike traditional brick-and-mortar establishments, food ecommerce is the practice of exclusively or concurrently selling food and beverage items through online platforms. Yet, distinct considerations set it apart from other ecommerce verticals. Vigilance is important, particularly in matters of transparency, ingredient processing, and accurate labeling of allergens. The gravity of this responsibility cannot be understated, as an estimated 32 million Americans grapple with food-based allergies, underscoring the potential harm that mistakes in this domain can inflict upon prospective customers. Moreover, adherence to stringent FDA regulations governing precise nutrition labeling is imperative. Navigating these intricacies is a critical facet of the DTC model in the food and beverage industry, where the safety and satisfaction of customers hinge on meticulous attention to detail and a commitment to transparency. Should a F&B Brand Use a DTC Model? In this economy, everything has gone digital. However, it is important to assess your needs and targets before you think about making the switch to DTC fashion & apparel industry. Here’s what you need consider: Factors to Consider Target Audience Preferences : In an era where online grocery shopping has become the norm for a significant portion of the population, understanding your target audience's purchasing habits is paramount. If your brand's demographic aligns with this trend, the DTC model becomes an enticing proposition. Logistical Feasibility: Before venturing into DTC, assess your operational capacity to handle logistics, encompassing order fulfillment, shipping, and customer service. This step is vital in ensuring a seamless DTC fashion & apparel industry experience. Potential Benefits Empowered Brand Control: DTC empowers F&B brands with unmatched control over their product positioning and messaging, fostering a consistent and resonant brand identity. Rich Consumer Insights: Direct interaction with customers yields a treasure trove of insights into their preferences, behaviors, and feedback. This data is invaluable for refining products and DTC Performance marketing strategies. Enhanced Profit Margins: Bypassing intermediaries translates into higher profit margins, as brands retain a more significant share of the revenue generated per sale. Challenges to Consider Logistical Complexities : Establishing and managing an efficient DTC operation demands meticulous planning and investment in logistics, which can be a substantial undertaking. Market Competition : The DTC arena is fiercely competitive, necessitating robust marketing endeavors to distinguish your brand amid the crowded landscape. Regulatory Compliance : Stringent adherence to food safety, labeling, and other regulatory standards is non-negotiable in the F&B industry, and brands must ensure unwavering compliance. Shifting Towards a DTC Model: The Current Scenario The decision to adopt a Direct-to-Consumer (DTC) sales model holds even greater significance in the current global market. With the global Consumer Packaged Goods (CPG) packaged food market soaring to a staggering $2 trillion in value in 2021, and poised for a continued compound annual DTC growth potential rate (CAGR) of 2.9% from 2022 to 2028, reaching a projected $2.5 trillion by 2028, F&B brands find themselves at a pivotal juncture. A testament to the shifts in consumer behavior, grocery emerged as the top online CPG category in 2020. According to the Food Industry Association and NielsenIQ, it accounted for an impressive 44% of all CPG ecommerce. This trend persisted into 2021, with online grocery shopping surging to $97.7 billion in sales, facilitated through pickup, delivery, and ship-to-home channels. Astonishingly, more than 70% of U.S. households placed one or more online grocery orders during the year, as reported by the strategic advisory firm Brick Meets Click. Strategies In Use for DTC Marketing in F&B Personalized Marketing and Subscription Services Personalized DTC Performance marketing involves tailoring product recommendations, offers, and content to align with individual customer preferences and behaviors. This approach creates a more intimate and engaging experience for consumers, as they feel understood and valued by the brand. Using data analytics and customer insights can help F&B brands curate unique experiences that resonate with their target audience. Additionally, subscription services provide a convenient and recurring purchasing option for customers, fostering brand loyalty and driving consistent revenue. Social Media Engagement Active and strategic engagement on social media platforms is essential for building and nurturing a community of dedicated followers. F&B brands use platforms like Instagram, Facebook, and TikTok to visually showcase their products, share engaging content, and establish a distinct brand identity. Through interactive campaigns, behind-the-scenes glimpses, and user-generated content, brands create a connection with their audience, driving brand affinity and amplifying their reach. Direct and Paid Traffic Acquisition Understanding customer acquisition channels is crucial for DTC fashion & apparel industry success. Organic search, powered by search engines like Google, is a formidable driver of sales. This emphasizes the importance of choosing the right digital platform with high search engine visibility. The decision between a headless ecommerce site, an online marketplace, or a B2B wholesale platform significantly impacts a brand's SEO Help DTC retail journey. Direct traffic, where consumers directly visit a brand's website, is a potent sales driver. However, it requires a well-established brand presence. In its absence, relying on organic search or high-ranking third-party marketplaces can be a strategic alternative. Paid search, marked as "Ad" in search results, mirrors traditional advertising. Brands invest in specific keywords and queries to secure a prominent position in search results. This offers an alternative route to acquiring customers. Importance of a Strong Online Presence Given that F&B customers frequently turn to search engines, particularly Google, for purchasing decisions, a robust online presence is imperative. Brands must ensure high visibility on search engines to capture potential customers' attention. If a brand's website lacks this visibility, utilizing third-party marketplaces or storefronts with established search engine presence becomes essential. Cultivate Reviews Customer reviews hold immense sway over purchasing decisions. Research reveals that a staggering 99.9% of consumers peruse product reviews before committing to a purchase, and they are even willing to allocate up to 31% more of their budget to brands backed by stellar reviews. For online-exclusive food and beverage brands, the significance of social proof is amplified. Since first-time customers don't have the luxury of tasting the product in advance, reviews become a crucial conduit for sensory experiences that might not fully translate through the online shopping experience. As Steph Carcamo, Customer Experience & Support Operations Manager at conversion optimization platform Justuno, rightly points out, reviews and user-generated content serve as conduits to ensure that factors like taste, which aren't easily conveyed in e-commerce, continue to drive traffic to your website. However, facilitating effective customer reviews involves more than just providing a feedback platform. In today's consumer landscape, ease of use is paramount. Customers are less inclined to share feedback if the process is not seamlessly integrated. Additionally, the quality of the data derived from these reviews is equally pivotal in gauging their impact. USP and Key Points Obtaining detailed insights on both the customer experience and product specifics can be a challenge. However, with the integration of the Okendo platform, this process is streamlined. Customers now have the ability to assess their interactions with your product based on customizable features such as flavor, ingredient quality, and value, providing a more nuanced understanding of their experience. This approach not only eliminates the uncertainty surrounding whether customers will touch upon crucial selling points but also offers potential buyers a transparent glimpse into how reviewers rate attributes such as flavor, ingredient quality, value, nutrition, and packaging. This comprehensive feedback mechanism paves the way for a more informed and confident consumer base. Researching Customer Attributes Understanding your customers on a deeper level is crucial in today's competitive business landscape. Customer attributes provide invaluable insights that enable businesses to personalize their outreach efforts effectively. By gathering data on individual preferences, behaviors, and needs, companies can enhance their offerings, increase conversions, and ultimately drive sales. For example, brands like Golde and Slate Milk have used customer attributes to great effect. By collecting data on factors such as age range, product benefits, and best uses, they are able to customize their offerings to better align with customer preferences. This not only enhances the customer experience but also opens up opportunities for upselling, cross-selling, and building long-term customer loyalty. Customer attributes also play a crucial role in product development and marketing strategies. They allow businesses to create targeted campaigns that resonate with specific customer segments. Whether it's tailoring messaging around particular benefits, use cases, or age groups, this personalized approach leads to more meaningful interactions and higher customer satisfaction. Incentives to Fuel Customer Reviews Offering incentives to customers can be a compelling driver for encouraging them to share their experiences through reviews. A notable 73% of consumers indicate that they would be motivated to submit a review if provided with an incentive. These incentives can come in various forms, such as coupon codes, loyalty points, or gift cards. Beyond boosting the volume of reviews, incentives can also significantly impact future purchases and contribute to improving customer lifetime value. UGC for Authenticity Today's market is heavily dominated by social media, which makes generating user-generated content (UGC) essential for building authenticity and trust. UGC, including photos and videos shared by actual customers, offers a genuine and unfiltered perspective on your food and beverage products. This authenticity is challenging to achieve through traditional, professionally staged photoshoots. UGC creates a sense of credibility and social proof that resonates with consumers and reinforces their confidence in your brand. Incorporating incentives to encourage reviews that include UGC can be a potent strategy to not only boost the quantity of content but also enhance its authenticity. This user-generated content is invaluable in shaping a brand's image, fostering customer engagement, and driving sales in the modern consumer landscape. Micro Surveys In light of evolving privacy regulations, adapting marketing strategies to collect customer data effectively has become paramount. Despite the longstanding practice of using post-purchase and micro-surveys, many food and beverage brands have yet to harness the potential of this strategy fully. There may be hesitancy in approaching customers for additional information or feedback. However, it's crucial to recognize that when customers engage with your website, they already demonstrate an interest in your brand. The simple act of asking for their input can provide valuable insights, and the worst-case scenario is that they decline. Micro-surveys, strategically deployed throughout the customer journey, offer a powerful tool to gain deeper insights into customer preferences and behaviors. Using the information gleaned from these surveys, brands can enhance customer experiences, refine marketing efforts, and ultimately drive revenue growth. This iterative process allows businesses to consistently improve their outreach campaigns and cultivate more meaningful interactions with their audience. Oversee Customer Satisfaction Studies have shown that even a modest 5% improvement in customer retention rates can yield a substantial boost in revenue, ranging from 25% to an impressive 95%. This underscores the tremendous impact that retaining satisfied customers can have on the bottom line. Implementing a Net Promoter Score (NPS) survey is an effective way to gauge customer satisfaction. By asking customers how likely they are to recommend your product, you gain valuable insights into their sentiment. Following up with questions like, "Do you plan on purchasing this item again in the future?" provides further context. These surveys serve as a direct line of communication with your customer base, offering a clear understanding of their preferences and intentions. Accurately gauging customer responses to your products is pivotal in shaping your future strategies. It informs decisions on product development and DTC Performance marketing initiatives, ensuring they align with customer expectations and preferences. This iterative process enables businesses to refine their offerings for sustained success. Knowing where customers primarily purchase your products is equally crucial. Whether through mass retailers, grocery stores, convenience outlets, or online platforms, this insight informs inventory distribution strategies. Knowing where your inventory should be strategically located ensures that customers have convenient access to your products, driving long-term success. Utilizing Post-Purchase Surveys Post-purchase surveys serve as a valuable source of zero-party data, offering unparalleled insights into customer preferences and behaviors. Beyond generating insights, this data can be aggregated into comprehensive customer profiles. These profiles encompass a range of information, including preferences, product usage, and key demographic details. Such profiles enable businesses to segment their customer base for targeted offerings like subscriptions or to deliver personalized messages and promotions through channels like email or SMS. In an industry where customers can't physically sample products before purchasing, this information proves invaluable in making tailored recommendations. Personalization for Customer Retention Personalization is a powerful strategy for driving customer retention and enhancing Customer Lifetime Value (LTV). By utilizing customer profiles, brands can reengage customers in a personalized manner, fostering longer-term brand loyalty. This approach, often underutilized, holds considerable potential for strengthening customer relationships and increasing brand affinity. Real-Time Adjustment of Marketing Efforts Post-purchase surveys, particularly those focused on understanding how customers discovered the brand, offer real-time insights into the effectiveness of marketing campaigns. By consistently gathering feedback, brands can adapt their marketing spend and efforts based on actual customer-sourced data. This ensures that future campaigns are guided by tangible results. This is especially crucial for online food and beverage companies operating across both online and offline channels, as it allows them to allocate resources effectively to areas yielding the highest returns. Seamless Integration Choosing solutions that seamlessly integrate with existing tech tools is essential. This ensures a cohesive and streamlined operation. Integrations with email/SMS and marketing automation platforms, as well as managed subscription systems, enhance the functionality and effectiveness of the chosen solution. This integrated approach enables businesses to utilize zero-party data from reviews and surveys in creative ways to boost conversions and encourage repeat purchases. Strategic integrations with tools like Attentive can revolutionize customer engagement for food and beverage brands. Combining the capabilities of these platforms will help businesses send personalized content to customers, gather actionable insights, and create richer customer profiles. This, in turn, leads to increased revenue and deeper brand-consumer connections. Incorporating conversational two-way text messages into customer communication strategies further amplifies the impact of these integrations, providing a more personalized and effective means of engaging with customers at scale. This dynamic approach not only enhances customer experiences but also drives revenue DTC growth potential for food and beverage brands. A combination of these elements, if done strategically, can help brands establish a direct and meaningful connection with their audience, driving loyalty, revenue, and long-term success in the competitive market Industry Trends in 2023 Sustainability and Transparency Addressing sustainability has emerged as an essential concern for our generation. This encompasses the production of sustainable products and eco-conscious packaging. Recent research from Cargill reveals a significant shift in consumer behavior, with 55% stating they are more inclined to purchase a packaged food item if it carries a sustainability claim. The motivation behind this shift is clear, as customers now associate several positive factors with sustainable products, according to insights from the National Retail Federation: Comparable pricing to other products and trends (35%) Perceived higher quality compared to other products/brands (32%) Improved product availability (21%) A better understanding of health and wellness benefits (21%) Awareness of how their purchase contributes to social responsibility (21%) Accessibility to information on reusing, returning, or recycling the product (21%) Transparency on product sourcing, production, and manufacturing (20%) In addition to sustainable packaging, F&B brands are exploring sustainability through partnerships with local suppliers. This not only aligns with the growing trend of supporting local businesses (embraced by up to 70% of consumers), but it also reduces the vulnerability to supply chain disruptions. Kate Flynn, CEO of Sun & Swell, predicts a continued shift towards consumers valuing authentic, purpose-driven brands, emphasizing the importance of genuine marketing efforts. Highlighting the contributions of proud suppliers can be a compelling aspect of this narrative. Transparency and a personal connection form the cornerstone of sustainable practices in food ecommerce. An overwhelming 94% of Americans assert that front-of-package (FOP) food labels greatly influence their purchasing decisions. Nutrition facts and ingredient-specific labels on the packaging are especially influential. Beyond label information, consumers actively seek out local businesses they trust, particularly those offering convenient options like same-day delivery or click-and-collect pickup. Eli Weiss, Director of Customer Experience at healthy soda retailer Olipop, underscores the significance of emotional connection in driving sales. Deep customer-brand relationships were vividly demonstrated when a new Olipop flavor was launched, resulting in a staggering $30,000 in revenue within just 15 minutes through targeted SMS announcements. Despite potential budget constraints due to rising living costs, consumers are willing to invest in what they perceive as high-quality products. The organic food industry serves as a prime example, with steady growth even in the midst of the pandemic. Stephanie Hunter, Brand Manager at Egglife Foods, reinforces the notion that consumers are seeking transparency regarding product composition and brand values. Clear nutrition statements, compelling brand narratives, and transparent values have become essential for CPG brands aiming to resonate with the modern shopper. In a market teeming with options, consumers are inclined to choose brands that align with their values and offer products they can genuinely feel good about. BNPL The Buy Now, Pay Later (BNPL) market is experiencing remarkable growth, with an anticipated size of approximately $576 billion in the current year. This marks a staggering 380% increase from its 2021 value of $120 billion. Notably, the grocery and food vertical is among the few sectors that have been slower to embrace BNPL, but this reluctance is likely to change in the near future. The advent of prominent BNPL providers like Klarna, Shop Pay Installments, Affirm, and Afterpay, coupled with major retailers both in physical stores and online, offering BNPL options, has initiated this transformation. Notable retailers in this movement include Costco, Wholefoods, Walmart, Target, Kroger, and Amazon Fresh. Consumers, particularly younger generations, are increasingly receptive to BNPL becoming a standard offering in the food and beverage sector. For instance, 40% of millennial shoppers express significant interest in BNPL, and this sentiment is echoed by 37% of "bridge millennials," referring to mobile-centric individuals aged 30 to 40. While traditional brick-and-mortar grocery stores are playing catch-up in adopting BNPL, food ecommerce businesses have a distinct advantage. They are already digitally oriented, making the integration of BNPL options into their checkout processes relatively straightforward. Diversification of Payment Methods In addition to the burgeoning adoption of BNPL, the food and beverage direct-to-consumer (DTC) landscape is witnessing a broader trend of diversifying payment methods. This shift reflects a response to evolving consumer preferences and the dynamic nature of digital commerce. Key elements of this trend include: Mobile Payments: With the proliferation of smartphones, mobile payment solutions have gained substantial ground in the F&B DTC sector. Apps like Apple Pay, Google Pay, and various mobile wallets offer consumers seamless and secure ways to make purchases. Mobile payments provide convenience, speed, and enhanced security, making them an appealing choice for modern consumers. Cryptocurrencies: Some forward-thinking F&B DTC brands are exploring the integration of cryptocurrencies as a payment option. This reflects a growing interest in digital currencies like Bitcoin and Ethereum. While the adoption of cryptocurrencies in the F&B sector is still relatively niche, it appeals to tech-savvy and crypto-conscious consumers seeking alternative payment methods. Digital Wallets: Digital wallets, such as PayPal and Venmo, have become an integral part of online shopping. They store payment information securely and streamline the checkout process. The convenience offered by digital wallets aligns with the broader trend of simplifying the payment experience for consumers. Food Subscriptions Subscriptions have become a powerful and rapidly growing trend, reshaping the way consumers engage with products and services across various industries. In the realm of food and beverage, while the concept of subscriptions is not new, it has gained substantial momentum. The global subscription economy, which encompasses diverse sectors, is projected to grow at a remarkable Compound Annual Growth Rate (CAGR) of 71.45% from 2020 to 2025, catapulting the total market size from $51 billion to an estimated $442 billion. Within this burgeoning landscape, ecommerce subscriptions in the United States are poised to claim a substantial share, amounting to approximately $38.2 billion in 2023, according to insights from eMarketer. The subscription model offers food and beverage brands a dynamic and customer-centric approach to payment and engagement. A popular variation of this model is "subscribe and save," which incentivizes customers with discounts for regular, recurring purchases. A prominent example of a brand successfully implementing this strategy is Hello Fresh, renowned for its subscription-based meal kit offerings. However, this model is not exclusive to large players. Smaller food and beverage brands are now utilising the "subscribe and save" approach alongside one-time purchase options. For instance, coffee and tea brand BLK & Bold provides customers with the flexibility to subscribe at various intervals, simultaneously enjoying cost savings on recurring shipping: CPG brands have several avenues to explore when offering subscription services: Product Trials : Subscription boxes featuring curated products with customization options. Brands can enable customers to sample items or receive seasonal food boxes tailored to their preferences and dietary needs. Refills: Product refill subscriptions ensure customers receive item replenishments regularly over a predefined period, streamlining their shopping experience and saving them money. Membership Subscriptions: This model grants customers access to exclusive products, discounts, or special perks. For instance, memberships like Thrive Market offer consumers access to a range of healthy products at guaranteed savings for a nominal monthly fee. An exemplary case study is Fire Dept. Coffee, a veteran-owned coffee roaster based in Rockford, Illinois. An upgrade to Shopify Plus and the introduction of subscription services helped this small but dynamic brand experience a substantial boost in sales. In 2021, Fire Dept. Coffee achieved nearly $10 million in revenue, with subscriptions contributing to a noteworthy 25% of their earnings. The food and beverage subscription model is not just a trend; it represents a transformative shift in how brands engage with customers, fostering loyalty, convenience, and savings while also opening new revenue streams and DTC growth potential opportunities. Non-Alcoholic Drinks The non-alcoholic beverage market saw a significant upswing, reaching a remarkable $11 billion in sales for the year 2022. This surge can be attributed to a shifting cultural perspective on alcohol consumption. Particularly, the emerging Generation Z cohort is adopting a more restrained approach to drinking, diverging from the patterns of previous generations. They associate excessive alcohol consumption with a range of societal issues, including sexual abuse and anxiety. As moderation in alcohol consumption becomes the prevailing attitude, major players in the alcohol industry are redirecting their focus towards crafting beverages tailored to the "sober curious" demographic. A notable example is Heineken's introduction of their 0.0 non-alcoholic beverage earlier this year, placing emphasis on its exceptional taste sans alcohol. Simultaneously, a wave of native ecommerce brands such as Mingle Mocktails, Unspiked, and Sans are championing the idea that it's entirely possible to revel and celebrate without the need for alcoholic beverages. This movement underscores the notion that sobriety need not be synonymous with a lack of enjoyment or festivity. Social Media’s Effect Social commerce has emerged as a critical avenue for direct-to-consumer (D2C) sales, employing the influence of social media platforms to facilitate seamless purchasing experiences. In 2022, social commerce sales in the United States witnessed a substantial surge, reaching an estimated $51.8 billion. This figure is expected to experience exponential growth, projected to reach an impressive $145.2 billion by 2028. The rise of social commerce can be largely attributed to the integration of in-app shopping functionalities on major platforms like Facebook, Instagram, and TikTok. This development gained substantial traction since 2020, with notable enhancements, including the ability to make purchases directly through posts. Brands can now seamlessly tag their products within photos or videos, streamlining the buying process. TikTok, currently the fastest-growing social media platform, has captured audiences with its focus on catchy tunes and creative, bite-sized content. This unique combination creates an ideal environment for food advertisements. Advertisers are capitalizing on TikTok's engaging format, using catchy hooks and trending challenges to connect with and captivate the Gen Z audience. Beyond advertisements, recipes and food ingredients that go viral on TikTok are piquing the interest of food retailers. Trends like mini pancake cereal and pink sauce have evolved into products available for consumers to purchase and experience firsthand. For instance, the highly popular pink sauce, as showcased by Chef Pii on TikTok, is now accessible both in physical stores and online on Walmart's website. To maximize exposure for your products, consider collaborating with emerging food influencers on TikTok. Demonstrating how your product can be seamlessly integrated into a recipe or conducting taste test reviews are effective ways to showcase your offerings. A prime example of a brand effectively employing this strategy is BLK & Bold Coffee. The brand extends an invitation to customers to make purchases seamlessly without leaving the social media platform. This eliminates potential friction points, significantly reducing the likelihood of abandoned sales. For small Food & Beverage brands, the social commerce method represents a potent tool for audience expansion. With over half of the global population actively engaged on social media platforms, there exists an unprecedented opportunity to connect with customers right where they are. Social commerce not only streamlines the path to purchase but also nurtures a dynamic and engaging brand-customer relationship, ultimately driving sales and fostering brand loyalty. As this trend continues to evolve, staying attuned to the latest features and functionalities on social media platforms will be pivotal for brands seeking to maximize their reach and impact in the ever-expanding realm of digital commerce. Brand Collaboration In 2021, Pepsi teamed up with the candy brand Peeps, sparking considerable social media excitement. Their limited edition release became such a hit that it ended up on the resale market, with some products fetching hundreds of dollars. Now, Pepsi and Peeps are back with another collaboration, but this time on a larger scale. They've introduced a marshmallow-flavored cola drink, set to become a must-have seasonal beverage for spring. For fans who purchase this drink, there's an interactive element. They can scan the can using a Snapchat lens, which allows them to engage in a virtual egg hunt. As part of this experience, participants have the chance to win limited edition Pepsi x Peeps merchandise and other exciting prizes. This creative blend of flavors and augmented reality gaming adds an extra layer of enjoyment to the beverage and builds anticipation among consumers. In Conclusion Adapting to evolving consumer preferences and industry trends is not just an option—it's a strategic imperative. To thrive in this landscape, F&B brands must be agile, innovative, and attuned to the shifting tides of consumer behavior. Embracing SEO Help DTC retail models empowers brands to forge direct connections with their audience, while harnessing the potential of authentic reviews and customer attributes refines product offerings and messaging. This is an era of unprecedented change, and staying ahead requires not only a keen understanding of market dynamics but also the right tools. Experts at Saffron Edge provide the technological edge needed to navigate this evolving landscape seamlessly. Embrace innovation, connect directly with your audience, and harness cutting-edge solutions. This is the recipe for success in the modern Food and Beverage industry. Thrive with Saffron Edge. Contact us today! ...
read more
Subscribe to our newsletter
Get fresh stories, case studies, and
advice
from successful creators and industry experts.