Why Quality Packaging Matters
Affects Consumer Purchasing Decisions
“Never forget that you only have one opportunity to make a first impression – with investors, with customers, with PR, and with marketing.” – Natalie Massanet
Did you know that 72% of Americans (and a comparable percentage of Canadians) say that their purchasing decision is influenced by packaging?
And guess what? Your product’s packaging is often the very first interaction your customers will have with your business.
It’s no longer simply the company with the best products that sells the most units. To be competitive in today’s business environment, you need a combination of quality products and noteworthy packaging.
Encourages Repeat Purchases
Running a business can be expensive. You have employees to pay, supplies to purchase, rent, and a number of other expenses.
That’s why it’s extremely important to build recurring streams of revenue. Encouraging first-time buyers to become loyal repeat customers is one of the best ways to accomplish this.
The beauty of this strategy is that you don’t need to convince repeat customers to buy your products. Sure, you can still upsell to them, but if they have already purchased from you and they were satisfied with your product, they’ll have no problem buying from you again.
Onboarding new customers, on the other hand, is a lot more work. First, you need to create awareness for your brand, then you need to explain why your product is better than competitors’ products, and finally, you need to convince them that you’re offering a fair price.
Perhaps this is why Harvard Business Review claims that acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.
So, that brings us to the question of how do I encourage repeat customers?
Well, one of the best ways is to spend some time improving your product packaging. In fact, 61% of customers say they are much more likely to repeat a purchase of a product if it came in premium packaging.
Encourages Social Sharing
In today’s digitally-focused world, most people have a smartphone at arms reach at all times. This makes it easy for anyone to broadcast what’s going on in their life to thousands of people across several of the top social media platforms.
Companies have found that after making an effort to improve their packaging, more people start to engage with their brand on social media.
For example, many of the top social media influencers on Youtube and Instagram share product unboxing videos with massive audiences comprised of millions of followers.
Even the average person with 500 friends on Facebook will sometimes share videos of themselves unboxing new products. This might not seem like that much exposure but consider the fact that some of these 500 people will watch the unboxing video and purchase the product for themselves. Then, they might share their own unboxing video that gets seen by even more people!
As many as 35% of consumers report that they watch unboxing videos and 55% of these people claim that watching the video convinced them to purchase the product.
Of course, in order to encourage customers to share their unboxing video, there must be something unique or desirable about your packaging and products. Data suggests that as much as 40% of customers will share an image of your packaging on social media if it is unique or branded.
Premium Packaging Increases Sale Value
Even though packaging has nothing to do with the product itself, believe it or not, it can actually influence the amount of money you can charge for a product.
For example, let’s say there are two products sitting side by side on a shelf.
Product A – costs $5, packaged in bland, generic packing material.
Product B – costs $7, packaged in aesthetic, premium packing material.
Product “B” might only be slightly better than product “A” but its premium packaging provides a sense of superiority and quality. When this is the case, customers will actually perceive the product with premium packaging to be several times better than the generically packaged product, and they’ll be more than happy to pay extra for it.
Of course, you don’t want to mislead customers – your product should always deliver on its promises. Never slap an inferior product in premium packaging and jack up the price.
A combination of a quality product and attractive packaging is needed to make this strategy successful.