Driving CPG eCommerce: 17 Growth Drivers To Embrace in 2026

Looking to drive some serious growth?

Wondering where to begin?

Tackling the CPG eCommerce landscape can be challenging, with factors like constantly evolving consumer preferences, an overcrowded marketplace, and rapid technological advancements at play.

Thankfully, we've compiled a list of 17 powerful growth drivers that every savvy eCommerce entrepreneur would find helpful.

The list covers everything from marketing and sales strategies to support and operational improvements, ensuring that you have a holistic approach.

And guess what? We're living in the age of AI everywhere, so we have included plenty of AI-focused recommendations to give you a competitive advantage.

So, buckle up and get ready to unlock your CPG store's potential in 2024 and beyond.

These 17 growth drivers mentioned below encompass a range of technologies and approaches designed to optimize performance and customer experience. Let's begin!

1. Leverage AI-powered product recommendations

Relevant product recommendations are crucial in driving customer engagement and increasing the average order value for your CPG online store.

By leveraging AI technology, you can deliver highly personalized product recommendations at scale across your website, catering to individual customer preferences and browsing history.

AI-powered product recommendation engines analyze a wealth of customer data, such as browsing patterns, purchase history, and demographic information, to suggest the most relevant products to each visitor. This personalized approach enhances the shopping experience and encourages customers to explore more products and make additional purchases.

To apply this growth technique, follow these steps:

• Research and select an AI-powered product recommendation platform that suits your business needs and integrates seamlessly with your eCommerce platform.
• Set up the recommendation engine to display personalized product suggestions on various website pages, including the homepage, product pages, and checkout pages.
• Monitor the performance of your product recommendations by tracking key metrics such as click-through rates, conversion rates, and average order value. Use these insights to fine-tune your recommendation strategy and maximize its impact on your business growth.

2. Embed shoppable videos across your website

While visually appealing, traditional website videos often fall short in terms of interactivity, limiting their potential to drive conversions.

By incorporating actionable elements into your store's videos, you can make them truly shoppable and hence increase direct sales by boosting conversion rates, making your website video content marketing stand out from the competition.

With Videowise, an end-to-end eCommerce video platform for brands and retailers, you can seamlessly incorporate shoppable videos on your website. Related capabilities of Videowise include:

• Responsive and adaptive video components provide exceptional video quality throughout the shopper's viewing experience.
• Fast page loading with compressed thumbnails, lazy loading, and minimal scripts.
• Effortless installation with a simple drag-and-drop interface.
• Multiple video component layout options.

3. Optimize your supply chain

In the fast-paced CPG eCommerce arena, achieving an optimized supply chain has become increasingly crucial.

A well-organized supply chain minimizes operational expenses and enhances customer satisfaction through prompt and precise product deliveries.

To apply this growth driver to your CPG brand, consider the following steps:

• Analyze your current supply chain processes, identifying bottlenecks and inefficiencies that may be hindering your business growth.
• Implement technology solutions, such as inventory management systems and warehouse automation, to improve the efficiency of your operations.
• Establish strong relationships with suppliers and logistics partners to ensure a reliable and cost-effective supply chain network.
• Continuously monitor and assess your supply chain performance, making necessary adjustments and improvements.

4. Launch an intelligent website chat experience for online sales and support

Traditional website chat experiences often fail to provide meaningful sales assistance and support, as they typically rely on scripted responses and cannot understand complex customer inquiries.

However, recent breakthroughs in AI, such as large language models (LLMs) like GPT-4, have paved the way for a new, intelligent chat experience that can vastly improve customer interactions on your CPG store's online channel.

A chatbot leveraging this technology can understand and respond to a wide range of customer queries with greater accuracy, providing personalized assistance for both sales and support. This enhanced chat experience can help CPG stores by increasing conversion rates, improving customer satisfaction, and reducing the need for human intervention in routine inquiries.

To adopt this intelligent chat experience for your CPG store, consider the following steps:

• Research and select an AI-powered chatbot solution that suits your store's requirements.
• Train the chatbot using your store's data, such as product information, frequently asked questions, and support documentation, to ensure it can accurately address customer inquiries.
• Customize the chatbot to align with your brand's tone, language, and style.
• Regularly monitor and evaluate the chatbot's performance to continually improve its accuracy and usefulness.

5. Embrace sustainable packaging practices

Incorporating sustainable packaging practices for your product line demonstrates your commitment to environmental responsibility and helps you stand out in a market where consumers increasingly value eco-friendly choices.

By embracing sustainable packaging, your CPG store can attract environmentally conscious customers and enhance brand loyalty.

To adopt sustainable packaging practices for your CPG store, here are some tips:

• Evaluate your current packaging materials and identify areas where you can transition to more eco-friendly alternatives, such as recyclable or biodegradable options.
• Opt for minimalistic packaging designs that reduce material waste without compromising product protection.
• Collaborate with suppliers sharing your sustainability commitment to align your entire supply chain with eco-friendly goals.

6. Offer flexible payment and delivery options

As customer expectations evolve, CPG eCommerce stores must offer multiple payment and delivery options.

By catering to diverse customer preferences, you can increase conversions, reduce cart abandonment, and foster long-term customer loyalty.

To adopt this growth driver for your CPG store, consider the following steps:

• Integrate various payment methods, such as credit/debit cards, digital wallets, and buy now, pay later (BNPL) solutions, to accommodate a wide range of customer preferences.
• To cater to customers with different urgencies and budget constraints, offer multiple delivery options, including standard, expedited, and same-day shipping.
• Provide clear and transparent information on shipping costs, delivery timeframes, and return policies to build trust and set accurate expectations for your customers.

7. Unlock the power of UGC content

By showcasing UGC on your website and marketing campaigns, you can provide social proof, encourage user participation, and create an authentic connection with your audience.

In particular, UGC videos are more engaging and shareable and provide better storytelling opportunities, making them valuable to any CPG eCommerce store's marketing strategy.

With Videowise, you can make video UGC work for your store on autopilot. Here's how:

• AI-powered search and curation to pull positive videos about your product or brand from YouTube.
• Automatic matching of the videos with the relevant product pages.
• Seamless conversion of all videos to interactive shoppable content.

RIFRUF saved thousands of working hours using Videowise's Find Video UGC feature. It enabled them to quickly find the most relevant product videos and easily add them to their website using the drag & drop video management interface.

8. Experiment with subscription models

Subscription models are revolutionizing the CPG industry (heard of Dollar Shave Club?), enabling businesses to build strong customer relationships, increase lifetime value, and boost revenue.

While not every company may be able to add a subscription model to their offerings, experimenting with this growth driver is worthwhile to see if it's a good fit for your CPG store.

Here are some guiding points to introduce a subscription model into your business:

• Start with market research to determine if there is a demand for a subscription model for your CPG products.
• Consider what types of subscriptions work best, such as weekly or monthly shipments or a discount for purchasing a certain number of products.
• Determine the pricing structure and whether it will be a flat fee or tiered pricing based on the number of products or frequency of shipments.
• Test the subscription model with a small group of consumers before launching it widely to refine and adjust as needed.
• Use customer feedback and data analytics to optimize the subscription model and improve customer retention.

9. Partner with relevant influencers to promote your product

Influencer marketing has proven to be a powerful way to boost the growth of CPG brands online.

By partnering with influencers with a large following and a strong reputation, companies can increase their visibility, reach new audiences, and build trust with potential customers.

Here are some key ways to approach influencer marketing for your CPG product:

• Identify the right influencers who align with your brand values and target audience.
• Craft a clear and compelling message for the influencer to communicate to their audience.
• Ensure the influencer's content aligns with your brand's aesthetics and voice.
• Set clear goals and metrics for the campaign to measure its success.
• Build a long-term relationship with the influencers to create more impactful and sustainable campaigns.
• Disclose the influencer partnership clearly to maintain transparency and authenticity.

10. Introduce AI-powered dynamic pricing

Dynamic pricing is a strategic pricing approach that allows businesses to alter their prices in real-time, responding to market demands and customer preferences.

It can be a game-changer for consumer packaged goods (CPG) eCommerce stores. By adjusting prices based on factors such as demand, competition, and customer behavior, businesses can boost sales, increase profits, and improve customer satisfaction.

In recent years, artificial intelligence (AI) technology has revolutionized the implementation of dynamic pricing. With the power of AI, eCommerce stores can quickly analyze vast amounts of data and make real-time pricing decisions. It simplifies the process and allows for more accurate and efficient price adjustments.

Here is a quick list of steps to follow to harness the benefits of AI-powered dynamic pricing in your store:

• Understand your pricing objectives.
• Choose the right AI pricing tool.
• Integrate data sources.
• Set pricing rules and limits.
• Monitor and adjust.

11. Integrate AR/ VR/3D product browsing experiences

Integrating AR/VR/3D product browsing experiences on CPG eCommerce websites unlocks exciting possibilities that can elevate the overall shopping experience.

By offering customers a chance to interact with products virtually, these immersive technologies create a highly engaging environment that fosters curiosity and encourages exploration. As a result, customers spend more time on your platform, delving into your offerings and making more informed decisions.

To successfully integrate AR/VR/3D product browsing experiences into your CPG eCommerce website, follow these steps:

• Determine specific goals for AR/VR/3D integration.
• Explore various AR/VR/3D platforms and choose a suitable one.
• Develop or source high-quality 3D models of your products.
• Ensure seamless navigation and intuitive interactions.
• Highlight these immersive experiences in marketing campaigns.

12. Upgrade your website's search experience with AI

By leveraging AI technology, you can make your website's search smarter, unlocking many benefits.

AI-powered search engines can deliver more relevant results, cater to personalized user preferences, and even enable visual search capabilities, which allow customers to search for products using images instead of text.

Here's a concise, actionable summary of how you can upgrade your website's search experience with AI technology:

• Choose the right AI search tool.
• Integrate AI search into your website.
• Optimize product data.
• Personalize search results.
• Implement visual search.
• Analyze and optimize.

13. Sell curated product bundles

Selling curated product bundles on your website can deliver many benefits that drive growth.

By providing thoughtfully assembled packages of complementary items, you enhance the customer experience, making shopping more convenient and enjoyable. This approach not only encourages customers to purchase multiple products, increasing the average order value and overall revenue but also helps you manage inventory by moving slow-moving items more effectively.

Additionally, offering unique and well-crafted bundles allows your brand to stand out from competitors, further solidifying your position in the market.

Here are some practical tips for creating and optimizing your product bundles:

• Identify popular items and buying patterns.
• Combine items that naturally complement each other.
• Develop bundles around specific themes or occasions.
• Offer bundled products at a lower price than individual purchases.
• Promote bundles prominently on your website and marketing channels.
• Continuously analyze bundle performance and refine offerings.

14. Hyper-personalize marketing emails

Traditional personalization methods often rely on basic demographic data, such as age, gender, and location. While these campaigns may seem tailored, they often lack the level of personalization needed to create a truly engaging experience.

It is where hyper-personalization comes in, delivering a more granular customization level tailored to individual needs and preferences.

To successfully implement hyper-personalized email campaigns, CPG companies should consider the following strategies:

• Collect and analyze behavioral, transactional, and contextual data to understand customers' unique preferences and habits.
• Use algorithms to process customer data, predict preferences, and optimize email content.
• Create micro-segments based on specific attributes, behaviors, and preferences.
• Update emails with real-time data based on recipients' recent brand interactions, ensuring relevancy.
• Analyze engagement data to send emails at optimal times and frequencies, maximizing conversion chances.
• Continuously test email elements to refine and improve campaigns based on audience response.

15. Run dynamic retargeting ads

Dynamic retargeting ads have become vital to CPG eCommerce growth strategies due to their exceptional return on investment (ROI).

These ads are tailored to individual users based on their browsing and purchase history, ensuring a highly relevant and engaging experience that drives conversions.

To set up effective dynamic retargeting ads, consider the following tips:

• Select an advertising platform that supports dynamic retargeting ads, such as Google Ads or Facebook Ads.
• Add tracking pixels to your website to gather data on user behavior and enable retargeting.
• Segment your audience based on user behavior, such as cart abandonment, page views, or past purchases.
• Create engaging ad templates that automatically populate relevant product information based on user behavior.
• Limit the number of times users see your ads to avoid ad fatigue and maintain a positive brand image.
• Regularly review your campaign performance and adjust targeting, bids, and ad creatives to maximize ROI.

16. Build an online community of your own

An online community serves as a hub for customers to connect, share, and engage with the brand and each other. It can push purchases, referrals, and brand advocacy, driving eCommerce growth.

Additionally, communities offer valuable feedback and insights that can help CPG brands tailor their products and marketing strategies to serve their audience better.

To build a thriving online community, CPG brands should consider the following tips:

• Identify the customers you want to engage and tailor your community platform to their needs and preferences.
• Select a platform that suits your audience's habits, such as social media groups, forums, or a dedicated community website.
• Create clear rules and expectations for community behavior to maintain a positive and supportive environment.
• Promote discussions, share valuable content, and ask for feedback to keep your community members engaged and active.
• Showcase customer reviews, testimonials, or creative contributions to celebrate your community members and encourage further participation.
• Regularly review community activity and promptly address concerns or issues to maintain a healthy and vibrant community.

17. Create a culture of data-driven optimization

Finally, embracing a data-driven culture can help every CPG eCommerce company identify trends, patterns, and opportunities, allowing them to fine-tune their marketing, product offerings, and customer experience.

By leveraging data to make informed decisions, brands can stay agile and responsive to shifting customer needs, outperform competitors, and drive sustainable business growth.

To foster a data-driven culture within your CPG eCommerce business, consider the following tips:

• Invest in training and resources to ensure team members understand the value of data and can interpret and use it effectively.
• Establish quantifiable objectives and key performance indicators (KPIs) aligning with your business strategy.
• Implement tools and systems to gather data from various sources and consolidate it for easy access and analysis.
• Recognize and reward teams and individuals who demonstrate exceptional data-driven performance and innovation.

Conclusion

As we've explored in this comprehensive guide, there are numerous strategies to propel your CPG eCommerce business to new heights in 2024.

The growth opportunities are vast and exciting, from leveraging advanced AI technologies and shoppable videos to building an engaged online community and fostering a data-driven culture.

By implementing even one of the strategies outlined in this guide, you'll take a significant step toward unlocking your brand's full potential in the competitive landscape.

One growth booster you can turn on right now is implementing shoppable videos on your website with Videowise’s leading eCommerce video platform.

Request a personalized demo today and embark on a journey to redefine your brand's eCommerce presence in 2024 and beyond.

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