Using Consumer Insights to Drive Retail Strategy with Social Nature

by Jenna Movsowitz

Social Nature is a community of engaged consumers who discover, try and share feedback on natural, betterfor-you CPG products. Their shopper communities span all major retailers and natural accounts across the country – driving retail foot traffic and trial for their partner brands

Jessica Malach is the VP of Marketing and Insights at better-for-you sampling company Social Nature, leading its consumer insights and brand partner programs in both Canada and the U.S.

THE IN-PERSON LANDSCAPE

Throughout the pandemic, Social Nature has continued to connect with their 800,000+ natural shoppers to understand their new habits. “Our particular segment of shoppers tends to be heavily concentrated around women aged 25 to 45, and 60% have kids,” Jessica Malach, VP of Marketing and Insights at Social Nature, reports. “Before the pandemic, we saw an average of about 2.5 trips per week – during 2021, that went down to 1.5 per week. They were going less often and increasing the basket size.” But in 2022, Malach predicts that in-person shopping trips will return to normal levels, especially for weekly items like perishables, produce and beverages.

At the same time, Social Nature anticipates some behavioral change around purchasing items like supplements, skincare or haircare, which are purchased less frequently and often have unique formulations. During the pandemic, shoppers have been leaning into the subscribe and save model on Amazon or DTC for purchasing in these categories; Malach anticipates this will continue.

While the click & collect and grocery delivery models were popular in 2020 and 2021, Malach predicts that the massive growth in these services will slow. “Some people want to pick their own products, and not need to be home for delivery. We’re returning to a more spontaneous world, and shopping behaviors will begin to reflect that.”

CONVERTING ONLINE DISCOVERY TO RETAIL PURCHASE

If you are a brand who launched exclusively on e-commerce or DTC during the pandemic, the idea of launching into brick and mortar can be daunting – but you’re not starting from scratch. In-person retail purchase often stems from behind-the-scenes, online demand generation (the process of driving customer awareness and interest throughout the lifecycle).

For instance, Malach notes that there is a major opportunity in strategic email acquisition. A solid email strategy can provide key information on the casually-aware potential consumer. “I would create a landing page that invites people to share this information. Something like, ‘Thanks for visiting us! We’d love to stay in touch and let you know when we’re in a store near you,’ and ask for their zip code and favorite retail stores,” Malach suggests. “Once you have that data, you can geo-target those shoppers once you get that new listing.” You can also use this data as part of your sales pitch to a retailer to demonstrate that you already have an eager consumer base among their shoppers.

Apart from demand generation through email strategy, Social Nature often works with clients to promote product trial vouchers as an incentive to draw in new consumers. They share a VIP, free product trial voucher to bring people into specific retailers. Other promotions, such as BOGO offers, can be used as a follow up. “Across almost all US target demographics, people are using coupons for food and grocery products. We see redemption rates as high as 50-70%.” In fact, 43% of Social Nature’s shoppers mentioned that digital coupon offers are how they learn about new grocery products.

These trial opportunities are immensely helpful both in introducing the product to consumers and gathering data around potential customers.

USING CONSUMER INSIGHTS TO INFORM RETAIL STRATEGY

While getting on shelf may feel like an endpoint, in reality, it’s only the beginning. The new challenge is a fight to protect your shelf space – there is always the risk of getting knocked off. “You may have data that indicates successful movement off of shelves. But POS data doesn’t help you understand the why behind your success,” Malach notes. “You need to understand what’s driving your velocities so you can improve your products. When consistently adapting to consumer feedback, you can meet current customers’ needs and secure their loyalty.”

Social Nature works with brands to drive trial for grocery products at key retailers like Whole Foods, Sprouts, Walmart, Kroger, Target, Publix and more. They also facilitate direct to home sampling for higher SRP items like supplements and skin care in trial sizes. This process generates product reviews and provides feedback to validate product demand – both of which can be incredible supporting data points in a retailer pitch. For example, Social Nature conducted digital demos for sauce brand Haven’s Kitchen to drive in-store trials and collect consumer feedback. While feedback can easily get lost in the shuffle of an instore demo, this opportunity allowed for simple post-trial survey responses and product reviews – 74% of shoppers filled out a post-trial survey sharing how they used the product. In reviews, shoppers reported that they wished the product came in a bigger sauce pack. Haven’s Kitchen adapted their packs in response, and were able to bring this data to Whole Foods markets (where, as Social Nature revealed, the majority of their customers were shopping) to justify product expansion with the bigger pack.

Beyond digital demos, Social Nature encourages brands to explore other methods of receiving consumer feedback where you’re already sold. One example is utilizing QR codes on-pack.”QR codes are a great way to connect with the consumer better.” Simply dropping a QR code onpack without any context, though, will not lead to consumer adoption, Malach adds. “The QR call-to-action needs to be engaging, like ‘leave a review to be entered into a giveaway’ or an explanation of how the consumer’s feedback could inspire the next big innovation.”

After brands have secured their new listing, Social Nature can be used to support in-store discovery and trial. “We will be able to give you predictable instore discovery in a set amount of time, because we can target people who fit your target audience and are already shopping at your new retail location,” Malach says. “This will help you build an engine of new customer acquisition – if they loved your product, you can provide them with another coupon. We’ve seen incredible post-trial conversion rates.”

In summary, aligning your product marketing and retail strategies with the voice of the market – consumers – is a winning and necessary strategy to succeed in today’s hyper-competitive and ever-changing marketplace.

Social Nature is a proud partner of Startup CPG. If you are interested in partnering with Startup CPG, please contact partnerships@startupcpg.com