Social listening assists companies in gathering insights about a particular brand or product through online conversation. They have essentially replaced focus groups as the key method in understanding the marketplace. But how can social listening specifically benefit the CPG industry?
The Consumer Packaged Goods industry exists in an ever-changing environment. Consumer needs are always changing. Chocolate and candy are popular during Halloween season, but not so much in January when people are starting new year resolution diets. Social media campaigns, offline promotions, pricing, innovations, and competition all factor into a consumer’s purchasing decision. This just scrapes the surface of what a CPG company needs to consider to ensure that their products are meeting the needs of consumers. Predicting consumer trends has become an art form that is impossible to thoroughly learn without the assistance of social listening companies.
Why social analytics?
Social media, eCommerce sites, forums, and blogs are just a few ways that consumers can voice their opinion about a product. With their brand’s reputation always on the line CPG companies constantly need to be monitoring what is being said about their products. Social listening companies like DataRank assist CPG companies by collecting comments about a brand or product, filtering out irrelevant conversation, and narrowing down the pool of data so that companies can quickly see how their brand/product is being received in online conversation. Companies are then able to take this knowledge and address negative sentiment, harness positive sentiment, or possibly create new products based on the information that they gained through data analysis.
You don’t need to be Coca-Cola to get insights
There seems to be a common misconception that data can only be retrieved about big and popular brands. This is assumed because they are the brands that people talk most about on Twitter and Facebook. While popular brands like Coca-Cola, and Budweiser take a large share of social conversation, there is also a lot of conversation about household goods, and personal products. The key is finding where consumers like to talk about products online. Social media is not the only place consumers like discuss their product experience. ECommerce sites like Walmart.com and Amazon have thousands of reviews for products as common as toilet paper and bread. It’s true! Check out the number of reviews and ratings you can find for kitty litter products at Walmart.com.
A real world example
Brand management is important, not just for determining if people like a product, but also for controlling negative sentiment when a company needs to change a product or introduce a new one.
We recently published a blog post about Nestle reducing the size of its popular Australian gummy, the Killer Python. Taking a sample of conversation from Twitter we were able to determine that 80% of comments disagreed with the resizing of the Killer Python. In an attempt to quell negative sentiment, Nestle took to social media, and responded to many tweets. By doing this they were able to stop misconceptions about the new product bearing the same price as the old product despite its quantity reduction. They also showed consumers they were listening to their complaints by responding to them directly through Twitter.
A business discovers through social listening that people were adding cinnamon spice to their brand of hot chocolate. They could use this information to come out with a new product of cinnamon spice hot chocolate to fulfill the needs of their established customer base. This may also drive sales from new customers who prefer spicy beverages. Increased conversation and engagement could occur during the fall season with the company pitching cinnamon spice hot chocolate to consumers who already love pumpkin spice.
The Benefits of Using Social Listening
- Can Track campaign performance.
- Discover potential product development from online conversation.
- Use deep listening to make informed marketing decisions.
- Develop an understanding of consumer needs.
- Build a relationship between consumer opinion and the product/brand.
- Be at the forefront of innovation in the CPG industry.
- Have a competitive edge in the market.
DataRank collects data from a variety of sources including eCommerce sites, forums, blogs, and social media. The data collected is then ranked by relevance, revealing the most useful comments that are then analyzed by our team. The insights we derive from the collected data are used by clients to understand current shopping trends, brand metrics, and consumer sentiment. Book a demo with us today.