Jonathan Asher, executive VP, Perception Research Services05.08.13
“Online shopping will mean the end of packaging as we know it!”
That dire prediction was made over a decade ago, as the design industry encountered the introduction of PeaPod and similar web-based shopping services.
While that prediction was grossly inaccurate – and the package design industry has continued to flourish - online shopping has grown tremendously and now accounts for roughly $145 billion in the U.S. alone.
And although web-based shopping is strongest in non-CPG categories (books, apparel, electronics, etc.), there's no doubt that this phenomenon has influenced how shoppers think and act when buying CPG products.
So while online purchases are still less than 5% of overall CPG sales, marketers and retailers must pay close attention to this channel, which is poised for further growth and influence.
Packaging is Even More Critical for Online Shoppers
With that thought in mind, Perception Research Services (PRS) recently conducted a series of in-depth-interviews among consumers that regularly shop online, assessing their shopping for Health & Beauty Aids (such as vitamins, OTC medications, cosmetics, skin and hair care products).
We focused here because these types of CPG products are more likely (than food, beverage, etc.) to be purchased online. The research process included using PRS Mobile Eye-Tracking to document what these shoppers did - including what they saw and missed - as they went through typical online shopping trips. Afterward, we conducted follow-up interviews to better understand their thoughts during the process.
Overall, we found that packaging plays a very important role in the web-based shopping experience, albeit in ways that vary somewhat from the brick-and-mortar world.
Across categories, one important dynamic of the online shopping experience is the initial search.
Certainly, search processes can vary based on the site (for example, a general search engine such as Google, as opposed to particular retailer or manufacturer such as CVS.com or Bliss.com) or the shopper’s intent (a mission to find a particular type of product, as opposed to browsing for what’s new or on sale).
But in nearly all cases, the package is a vital tool in performing the “de-selection” process, once the online shopper has conducted a search and arrived at the category of interest.
In fact, the package may be more critical online, because there’s a more level playing field than in physical stores: Both big and small brands are typically represented by one SKU - and larger brands find it harder to create “billboards” that dominate shoppers’ attention and become self-fulfilling in maintaining their category leadership.
For online shoppers, searches instead lead to a myriad of individual items to consider. And to simplify the process, we saw that they initially rely on packaging images for brand identification and product confirmation.
Regarding the latter, we found that web shoppers often found it difficult to find a particular variant within a line (e.g., form, formulation, scent, etc.), because they saw only one SKU at a time with other variants scattered among single SKUs of other brands. In fact, some shoppers simply purchased the first variant they encountered, without realizing it wasn’t their usual variety.
Later, once they have formed a smaller consideration set, the package also plays a central role in:
- Feature and benefit communication
- Product/brand comparisons (often across screens or web sites)
- Confirmation of correct product selection (in the shopping cart, prior to purchase)
Of course, the web does typically allow for additional information delivery, beyond the package. And here, our eye-tracking research revealed some differences across products:
- For health products (e.g., vitamins, pain relievers, etc.), online shoppers were more likely to read the text that appeared on the screen
- For beauty products, shoppers typically relied on the package alone
Mistakes to Avoid, Opportunities to Embrace
Across categories, we uncovered some concerns with how packages appeared online.
In some cases, image quality was rather poor, leading to issues with brand recognition and/or detracting from quality impressions.
And often, shoppers had difficulty gauging product quantity, as small packages looked similar to larger ones in an online context - and the quantity information was not always readily apparent. Predictably, this sometimes led to price/value concerns, as shoppers focused on price alone.
In addition, many HBA products have both a primary and secondary package (e.g., a bottle of pills inside a carton) - and occasionally the “wrong” pack was shown online. Specifically, the outer pack was shown in many cases, but the shopper’s mental picture was based on the primary container that “lives” in their bathroom.
With online shopping, packaging also plays an important role in the fulfillment process. When the product arrives at home, the package confirms it is the desired one and reassures the shopper that it is genuine (“the real one”).
Thus, in addition to providing basic product protection, the outer shipping container can be valuable as a marketing vehicle and branding element. Of course, it also creates an opportunity to add-value to the online shopping experience, by sharing additional information, product samples, etc.
Seven Strategies for Online Success
As CPG manufacturers and retailers strive to win in the growing online channel, they will be well-served to understand and respect the role of the package. Specifically, they should have these fundamental objectives and tactics in mind:
1. Foster Brand Recognition: Create a distinctive and memorable set of visual equities, via the package shape, color and/or graphic elements, to foster brand recognition online.
2. Promote Quality: Utilize high resolution digital images of the package, to promote a quality brand/product impression.
3. Be Simple and Clear: Use simple and legible copy, particularly related to size/quantity, to ensure the right price/value perception.
4. Utilize Packaging Real Estate: Include secondary panels for shoppers seeking additional information.
5. Choose Primary or Secondary (or both): Determine which package - primary or secondary - is most important to shoppers and display it.
6. Encourage Sales: Find ways to quickly show the relevant product range, to provide context and help shoppers pick the right product.
7. Add Value with Outer Packaging: Use the outer container to provide brand reassurance and add-value at the fulfillment stage.
By following these critical guidelines, online marketers and designers can help ensure that they fully leverage packaging to create a competitive advantage - and to “win” in this growing retail channel.
