Standing out in a crowded market place: how custom packaging can increase profits

4 min read 05 February 2016

It’s widely acknowledged that it’s cheaper to keep an existing customer than to attract a new one.  A 2010* study said that it could be around five times more expensive to recruit a new customer. Not only are existing customers far more likely to purchase from your business, but it is also easier to convert them into brand advocates who will advertise your brand to friends and family.

Custom packaging gives customers an instant impression of the brand
Custom packaging gives customers an instant impression of the brand

One of the best ways of attracting repeat custom is by making your brand memorable. Businesses can’t always achieve this by creating a great product alone. You also need to market and package it in a way that differentiates your product from the competition. Only then will you create an experience that feels special for the customer.

Fun packaging makes your product stand out, come alive and in some cases becomes the very reason why your users come back to you for more”-Zopim

If your package looks like every other plain parcel your customer receives, how do they remember where they purchased that great product from?

Customisation: how does it encourage repeat purchases?

Customising your packaging allows your customers to instantly recognise your product range, making them more likely to think of it when it comes to buying that type of product in the future. There are many ways that a company can customise their packaging. Digital customisation has made this quicker and easier than ever. This is where you can use websites like Moonpig.com or Rajaprint to upload your own images, which are then printed directly onto the packaging.

Large retail businesses have been customising their packaging for years. Think of all the times you’ve had a delivery from Amazon or bought groceries from Asda; their identity is emblazoned on the packaging and tells you in an instant who the package is from. Their branding lasts throughout the customer journey and brand recognition lasts long after the products are received.

What effect does custom packaging have on the customer?

Box

In retail, having ‘top of mind’ awareness is important when trying to achieve a higher ROI and more repeat custom. Top of mind means that when a customer considers purchasing a product, they think of your brand.

Stand out packaging is vital for lasting awareness, as it allows the customer to associate an image and name with the product.

If a customer associates a brand name or image with a quality product, they are more likely to purchase that item again and also explore other products in the same range. In effect they have increased their depth of involvement with your company from product to brand.

Connecting with the customer

Customers are more likely to purchase a product that they feel connects with them or relates to them on some level. This could be showing an understanding of age group, sub culture, gender or personality type.

Gender specific (GS) packaging is a prime example of this. GS packaging is when a product is designed with imagery that appeals to members of a certain gender. This could be in the choice of colour pallet or imagery that resonates with that sex. According to a poll organised by ‘easyFairs’, 37% of women would be more attracted to gender specific packaging.

Jean-Paul-Gaultier

Customising and branding packaging allows businesses to communicate their personality to the customer. If a customer feels that the brand understands them or their needs, they are more likely to be become brand loyal or brand advocates, rather than just one-off customers.

Taking customisation to the next level with personalisation

A number of big brands have now evolved customisation further with personalised packaging. Personalisation allows the customer to feel personally connected with the brand. This could be through non-targeted personalisation, such as the names on Coca Cola bottles (which increased sales by 2% after a number of year-on-year declines) or the ultra-targeted campaigns such as Nutella’s new label name branding campaign.

Nutella

Nutella’s label personalisation makes each product unique to the customer and blurs the lines between seller and buyer, allowing the consumer to feel closer to the brand.

What impact could this have on your business?

Statistics tell us that branding and customised packaging encourages repeat purchases, but how does that translate into success for your business?

Bain & Company, the global management consultancy firm, say that a mere 5% increase in customer retention could translate into increased profits of 25%. Although there are extra costs associated with the introduction of customised packaging, the figures show that the return on investment can be well worth the outlay.

If you can start making your customers think of your business as a brand rather than simply a product, you create an audience who are ready to become long term advocates.

* Lee Resources inc.

Comments(2)
  1. Thank you for sharing your article the content was great and informative I love to read more of your articles soon

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