CPG and voice: the impact on CPG brands and products

Magid’s qualitative research team recently spent time with voice assistant owners to explore points of normalization and points of friction, discovery, preferences, desired applications, and more.

There are several ways that people relate to the use of voice technologies showing potential opportunities for CPG brands to get in the mix and play. CPG brands utilizing Voice technology matters as early adopters are increasingly hungry for more brand applications when it comes to their voice assistants. Think less, “What’s the weather like?” and more, “How many calories are in a Nature Valley peanut butter protein bar?” or “What stores carry my favorite flavor of Chobani?” or even “What appetizer could I make at the last minute with these ingredients in my cupboard?”

Brand opportunity for CPG & voice technologies – a halo effect from early adopters

Brands that have a presence in some way via voice technologies can realize a positive halo related to brand perceptions. It appears to make the brand more human-centric. As my colleagues who conducted the study outline, it makes the brand seem innovative and that they’re trying to help the consumer in some way. This is a great finding for “living the brand” – a la the Taco Bell takeover.

There especially appear to be opportunities for integration applications for framilies interacting in group-based occasions. When they gather across various social consumption occasions with tasks to accomplish, they may interact with voice, ask for things and aren’t afraid to look silly trying to engage in new ways. Further, branded content can be a part of the occasion in some way, whether the occasion is centered on gaming, or video content, music, etc. Branded content delivered via voice technologies can help drive deeper brand engagement, feelings, etc.

Consumers feel like they’re ahead of the curve when they use voice, they feel like they’re being innovative, and brands can realize potential positive halo effects by being voice present. These engagements certainly need to be good, but consumers aren’t expecting perfection. Yet.

Product opportunity for CPG and voice – a great tool for comparison shopping

From a channel perspective (convenience, grocery, etc.), there is the opportunity to form partnerships and drive share growth via shopping offers and adjacent deals, whether in-store or online, using voice, e.g. if you use Alexa and shop at XYZ store you’ll get a BOGO or discount or adjacent category offer – free Tostitos salsa with purchase of Tostitos chips.

Voice is also a great tool for comparison shopping and potentially driving channel growth – compare prices head to store XYZ store to pick it up. Think curated shopping destinations.

Health and fitness is also a big category. I can connect to my Fitbit, get nutrition tips from experts and brands, find the categories, brands or channels where I can shop to drive growth for healthier brands.

Voice brings positive aspirations to improve self with reminders on snacking behaviors, curated shopping lists, and even by helping record food diaries, which can drive category and brand consumption.

Embrace the test-fail-test mindset

Early adopters are busy building behaviors and the winners will be those who test and learn – some things will fail, and your team has to be ready to dust themselves off and pick right back up. Much like ecommerce in the 1990s, we are on the precipice of a dramatic shift in consumer behavior and the lessons to be learned from early adopters of voice in CPG will be invaluable to the winners of the future.