The Evolution of the Consumer Journey in CPG
The consumer journey in the consumer-packaged goods (CPG) industry has drastically evolved over the past few years, with companies moving from isolated, one-dimensional touchpoints to interconnected, omnichannel experiences. Though consumers once engaged with brands primarily in-store or through separate online platforms, today’s journey is far more dynamic, spanning across multiple digital and physical touchpoints. This evolution has been driven by growing consumer expectations for personalized experiences where online convenience and offline interaction blend together. As a result, CPG companies must integrate both channels cohesively to enhance the consumer journey in CPG and create consistent, satisfying shopping experiences.
Rise of Phygital Experiences
Phygital marketing, which merges digital tools with the physical environment, is becoming invaluable in creating a differentiated and cohesive consumer journey. As we continue shifting to an omnichannel shopping experience, it’s essential to maintain brand consistency across platforms.
L‘Oréal, for example, has stood out through the integration of their Skin Genius app with storefronts, enabling in-person consumers to engage digitally with interactive displays. These platforms have been launched in several Ulta and Sephora locations, helping expedite the shopping experience and boost consumer satisfaction. With this phygital approach, consumers can easily get personalized recommendations for skincare products while shopping, decreasing product returns and negative reviews.
L’Oreal’s in-person installations are among many examples of how companies can harness phygital marketing. A more subtle and common form of phygital marketing is the use of QR codes in-store, providing consumers with more detailed product information, promotions, and other virtual additions.
Moving forward, CPG companies should create and promote hybrid experiences that combine the convenience and expansiveness of online shopping with the tactile benefits of in-store interactions. Recognizing that the consumer’s world is a mix of physical and digital experiences and being able to achieve a cohesive interaction across both will drive a seamless customer journey.
AI-Driven Consumer Interactions
AI-driven technologies are revolutionizing the consumer journey for CPG companies by creating highly personalized interactions and automating key aspects of the consumer experience. Today’s consumers expect seamless, tailored experiences, and AI enables brands to deliver just that. For example, AI-powered chatbots on apps and websites allow consumers to get real-time, 24/7 support for inquiries, such as order tracking, delivery updates, and product recommendations. These tools not only improve response times but also foster more dynamic, personalized interactions by learning from past behavior and preferences.
In addition to transforming digital interactions, AI is also reshaping the in-store experience. Retailers are beginning to use AI to integrate online convenience with physical shopping. For example, some companies are exploring the use of AI in frictionless checkouts, such as those seen at Amazon Go stores, which allow consumers to pay without needing to wait in line, making the in-store process faster and more efficient. However, for CPG companies, this may influence impulse purchases typically made in check-out lines. As these frictionless checkout stores rise in popularity, brands will need to find other methods to capture customer attention in-store.
AI’s impact on the consumer journey also extends into back-end operations that consumers may not see but still directly benefit from. Through advanced data analytics and machine learning, AI helps CPG companies better predict demand patterns and adjust supply chain processes accordingly. This reduces out-of-stock situations and ensures that products are available when and where consumers want them. Unilever, for instance, recently released AI-enabled ice cream freezers that can monitor stock and report exactly what products the freezer will need restocked. By integrating AI into both front-end consumer interactions and back-end operations, CPG brands can deliver a smoother, more convenient journey that adapts to consumer expectations.
Social Media in Driving Purchases
Social media has become an integral part of the consumer journey for CPG companies, shifting from a platform for advertising to a powerful driver of direct purchases. With the rise of social commerce, where consumers can discover and purchase products directly through apps like TikTok, Instagram, and Facebook, CPG brands have gained new opportunities to engage with consumers in more dynamic ways. TikTok Shop and Instagram’s in-app purchasing feature are transforming the way consumers discover products, leading to a more seamless buying experience. In fact, social commerce sales are projected to grow to $144.5 billion by 2027, underscoring its influence on the future of consumer behavior.
One example of this is Hellmann’s, which effectively used Instagram to inspire its audience by sharing recipe ideas featuring its products. The company took this one step further by integrating one-click purchasing via platforms like Amazon and Instacart, making it easy for consumers to immediately buy the ingredients they saw in a post. This not only enhances convenience but also shortens the path from inspiration to purchase, creating a more fluid consumer journey.
The ability to connect with consumers where they already spend a significant amount of time has reshaped how brands approach the consumer journey. Influencers and content creators are playing a central role in this shift, using their platforms to recommend products and create content that drives purchasing decisions. For CPG companies, influencer marketing has become a critical touchpoint, as consumers often trust peer recommendations and curated experiences over traditional advertisements. Micro-influencers can particularly play a huge role in establishing credibility and relevancy, presenting a more affordable and generally relatable marketing strategy.
By blending engaging content with direct purchasing capabilities, social media has become a powerful tool for driving sales and deepening consumer relationships. The ability to track engagement and quickly adjust campaigns in real-time makes social media marketing an essential part of a modern, data-driven consumer journey.
What’s Next for the Consumer Journey in CPG?
The consumer journey in CPG has undergone a dramatic evolution, reshaping how brands engage with consumers across both physical and digital spaces. To keep up with shifting consumer behaviors and rising expectations, brands must continue to innovate and refine their strategies. Today’s consumers expect a seamless and convenient experience, whether they’re interacting in-store, online, or across multiple channels.
Phygital marketing is becoming essential for creating cohesive and engaging consumer journeys, and AI-driven interactions offer personalized, real-time solutions while optimizing back-end processes. Social media platforms have also become powerful tools for discovery and purchase, enabling consumers to engage with brands directly through influencers and social commerce platforms.
As the consumer journey continues to evolve, the future will depend on a brand’s ability to adapt to this increasingly omnichannel landscape. Successful CPG brands will embrace emerging technologies and continuously innovate to create seamless experiences and meet consumers where they are, both online and offline. This will ensure companies will keep pace with consumer expectations and continue to modernize the consumer journey in CPG.
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Contributions from Sam Weitzel