Chasing the SoLoMo Consumer
Savvy consumers are increasingly identifying and using multiple information channels to enhance their shopping experience. The SoLoMo consumer (social, location, mobile) is using a broad network of contacts when selecting stores and products.
According to Steve Kazanjian, vice president of Global Creative for MeadWestvaco, consumer packaged good sales are expected to grow at a 25 percent compound annual rate from 2012 to 2015. But not all of this will be taking place in brick and mortar stores. In fact, research and consulting firm Forrester predicts that some 192 million U.S. consumers will do at least some of their shopping online in 2016, up 15 percent from 2012. Think for a moment: when was the last time you made a significant purchase in a store or online that didn’t also involve some level of online research?
As more purchase decisions—and purchases—shift to online, some of the familiar retail mix of signage, custom end-caps and point-of-purchase displays is essentially being replaced by “likes” on Facebook, online customer reviews (of questionable veracity), blogs and Tweets. These platforms let consumers grow their circle of influence and information exponentially, drawing in friends and followers, many of whom have opinions about almost every brand or product imaginable.
Packaging still critical
But even with all the free-flowing communication, the part of the marketing and branding mix that is still critical is packaging. Online, consumers cannot touch, feel or gain a real sense of a product. All they can go by is how an item looks on-screen and what a few words of description may claim. What is lacking is what Bill Cecil, director global manufacturing at MeadWestVaco calls “the moment of truth,” when the purchase decision is made.
Packaging is absolutely vital in aiding this decision. Holding and examining the physical package tells a shopper how easily it will be to use and store at home. The package also bears a variety of product information and an opportunity for cross-selling that is far more easily forgotten or ignored when shopping online. The package is also marketing display in a store. Whether it’s the “billboard” of a 30-foot aisle of Coca-Cola products or a brightly colored POP display of baking mixes, packaging is the eye-candy that supports a brand, aids the purchase decision and can drive brand extension with related products.
Still, brand owners all know the online influence is an important part of the new marketing mix, and that an online connection with SoLoMo consumers is essential to repeat purchase and loyalty, both online and in a retail store.