JUL 09, 2020

How CPG & Retail Must Shift From CX to HX

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What people want to see from brands has changed. It’s no longer just about a quality product. Consumers want personality. They want connection. They want social values. They want to see--to KNOW--that the things they buy are tied to a real human community. 

In our research with GlobalWebIndex, From CX to HX, we’ve uncovered the ways in which consumer desires and needs have changed. These changes have been materializing over the past several years, and coming out of the global pandemic, they’ve become even more apparent. 

From CX to HX showcases how these changes are impacting various industries around the world, with Consumer Packaged Goods and Retail being a key industry affected by the shifts. For CPG brands and marketers, forging deep connections with consumers presents a unique challenge because of how impersonal product manufacturing, distribution, and purchasing have become. In the eyes of consumers, what really makes one product any different from or better than its competitor if both are assumed to be mass-produced in the same nameless warehouse? 

This is where HX strategies come into play across three key areas: brand storytelling, production, and purchase touchpoints. 

Brand Storytelling: Putting a Face to the Brand Name                                                    

In our research, we found that the number of consumers who said they would buy a product or service simply to be a part of the community built around it grew by 36% from 2012 to 2020. 

Source: From CX to HX, Worldwide Partners & GlobalWebIndex Report 2020

Consumers are seeking real, human connections to the products they buy, and understanding who produced these products can forge those connections. Maybe you’re a dairy farm run by generations of the same family, a cosmetics label founded by roommates in their college dorm, or a wellness line developed to naturally treat your daughter’s eczema. People want to see that the things they buy are in some ways tied to a real human story or community.                                         

By giving your brand a human face, a family, and a story, you can not only humanize it, but also differentiate yourself from the endless array of similar products that are available in our global marketplace. 

Production: Product Quality Still Matters, But Human Element is Catching Up

Our research shows that over the past five years, the key indicators of brand advocacy on the rise have centered around a human element. Getting great customer support, receiving personalized recommendations or services, becoming involved in the brand community, and building a personal one-on-one relationship with the brand--these human touch points have all grown in importance for consumers across the global. 

The importance of providing high-quality products and services has remained the same over the past half decade. And saving perhaps the best news for last--discounting, promotions and free gifts have actually dropped in importance. 

Source: From CX to HX, Worldwide Partners & GlobalWebIndex Report 2020

Purchase Touchpoints: Maintaining Human-to-Human Connections

Automation, ecommerce and in-store self checkouts create efficiencies for brands and consumers alike, but they can also leave consumers feeling overwhelmed and disconnected. The ability to ask questions, get advice, and understand how a product is made and used is a key differentiating factor for brands in the CPG space. 

The promise of connecting with a real, live human is so important, in fact, consumers are willing to pay a premium for it. They may also be less likely to go price shopping, creating long-term loyalty and increasing average lifetime value.  

Differences Between Mature and Emerging Markets

While the consumer desire for a human connection is global, the means to that end varies significantly by market. Our data shows that in mature markets, elevating artisanal disruptor brands is the way to go for food and alcohol. Traits like “craft,” “handmade,” and “independent” are more likely to be associated with high-quality food products relative to other attributes. In emerging markets, however, it’s established brands that are seen as more high quality. 

Source: From CX to HX, Worldwide Partners & GlobalWebIndex Report 2020

To create HX for large established brands, emphasize the unique product attributes (e.g., exceptional ingredients), sustainability initiatives (e.g., 100% recycled packaging)  and/or positive labor force impact on the community (e.g., employing 500 local farmers).                                                                                     

This mature versus emerging market split occurs in another key area for CPG brands--online shopping. Consumers in mature markets tend to opt for more humanized elements throughout the purchase process. Yet, in emerging markets, most notability in Asia-Pacific, consumers embrace the online shopping experience to a greater degree. 

Source: From CX to HX, Worldwide Partners & GlobalWebIndex Report 2020

Our global data reveals that to set your CPG brand apart from the competition, you must forge a human connection by embracing your origin story, allowing consumers to connect with real people at the brand, and leveraging the elements of HX that work best in your geographic market.                                     

For more insights on how CPG can leverage HX, and a look at data for other key verticals, download our free report

Written By:
Angie Pascale

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