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Digital Marketing - Study Notes:

Conversation rate optimization benefits

The packaging that you deliver your products in also says a lot about your business and has a big impact on how consumers perceive and value your brand.

Gratifying unwrapping experience

So the whole process of receiving a product that you’ve paid money for, and then unwrapping it and basically getting in to touch that product is a really important part of the buying and user experience.

If you get that right, it can massively amplify people’s feelings for your brand. So, for example, Apple, they do this incredibly well, where everything in the packaging is incredibly sleek, incredibly simple, and it really aligns with their brand positioning.

Conversely, if you get this wrong, it can be incredibly frustrating. I think we’ve all wrestled with those highly packaged electrical goods that you need scissors or a knife to get into and you’re pretty pleased when you get away without cutting your finger off. And so that’s an example of where you’re already frustrated before you’ve even started using the product. And so those are things you absolutely want to avoid.

Exposure to advertising

There’s also an additional benefit of getting the packaging right of advertising. If you deliver the product in a beautifully branded bag that all the way through the supply chain, wherever someone might see it, that’s raising brand awareness of your product. So when it’s sat on someone’s doorstep waiting to be delivered, people can see it there and that all helps the presence of your brand grow. Likewise, it’s an opportunity to include flyers and tokens about new products that your business offers when customers are buying your products because you know they already like what you have to offer because they’ve chosen to buy some of your products. So this is a great opportunity to increase customer loyalty and increase customer value.

Reinforce positive brand perception

So all of these things work together to reinforce the perception of the brand, and you’ve got to make sure that that’s a positive one.

Disadvantages of inappropriate packaging

Poor customer experience

There are other considerations and potential problems about getting the packaging wrong, too. So I’ve already spoken about the poor customer experience of struggling to get into the package, but there’s an additional consideration. I think we’ve all had those packages where you’ve bought a small product and it arrives in a giant box with card and tissue and everything all around it to stop it rattling around in the box. So that often says to the customer, who are often now very environmentally conscious, that this supplier is not taking those environmental considerations seriously. And again, that can have a negative impact on how the brand’s perceived.

Over-payment to carriers

There’s also a very real commercial cost of that because packaging is usually charged by the courier based on the volume that the packaging takes up. So by having packaging that is much larger than it needs to be, you’re often spending large sums of money effectively shipping air around the country.

So it’s really important, both from a consumer perception and from a hard-nosed commercial point of view, that you optimize the packaging as much as possible to make it as efficient as possible.

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Graeme Smeaton

Graeme Smeaton is the founder of Royal & Awesome. Along with a proven track record in defining and delivering marketing strategies that drive significant growth and create real shareholder value, Graeme is highly commercial. He has extensive experience managing PLs and other key financial statements, while being an operational board director of AFG Media Ltd, and has experience negotiating with suppliers, distributors and licensing partners.

By the end of this topic, you should be able to:

  • Identify the impact of logistics, packaging, purchasing, distribution, and payment options for an e-commerce solution
  • Evaluate e-commerce revenue models and the advantages associated with different e-commerce solutions 
  • Critically appraise the requirements for managing e-commerce customers in accordance with current laws and legal guidelines

Data protection regulations affect almost all aspects of digital marketing. Therefore, DMI has produced a short course on GDPR for all of our students. If you wish to learn more about GDPR, you can do so here:

DMI Short Course: GDPR

The following pieces of content from the Digital Marketing Institute's Membership Library have been chosen to offer additional material that you might find interesting or insightful.

You can find more information and content like this on the Digital Marketing Institute's Membership Library

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E-Commerce Strategy
Graeme Smeaton
Skills Expert

The E-Commerce Strategy module will introduce the characteristics of the e-commerce business model and will help you understand the corresponding business requirements and decisions that flow from their value proposition. You will learn to recognize the strengths and limitations of different e-commerce solutions and common payment methods. Finally, you will respond to a range of different illustrations showing how the level of customer service affects an e-commerce business in an industry where trust is key to the purchasing decision.