E-commerce brands such as Birchbox and PetFlow find their goods are being featured more and more among the 250 million photos shared across mobile phones and the web each day, giving them a new platform to cash in on free, online “word-of-mouth” advertising. For example, Ross Gordon, CEO of CraftJack, Inc. and advisor to MysteryTackleBox.com tells FORBES that the company experienced a 30 percent lift in combined YouTube and Instagram sharing when it added cards with "share experience" messaging in its boxes.
That's why shipping requires some inside-the-box thinking, according to Doug Sternberg, executive vice president of Client Strategy at Dotcom Distribution.
As the logistics provider behind the packaging of Birchbox, Vineyard Vines and others, he believes that premium packaging can be a low cost way to build brand loyalty and make purchases more shareworthy on social media, not to mention provide a sturdy means to ship merchandise to arrive intact.
FORBES caught up with Sternberg to get his take on the science of creating beautiful packing materials and gives us the skinny on the cost and return on the retailers’ investment.
FORBES: What is the “science” behind creating premium packaging?
Doug Sternberg: It’s about understanding the desired brand experience, the type of products and, ultimately, the customer. From there, you can develop attractive packaging that continues to reinforce the brand message during and after delivery of your product. This approach must be tailored based on the value of products or average order value, size, weight and nature of the products, and ultimately the level of “wow” the brand wishes to provide.
As an example, lightweight apparel can be wrapped in tissue paper and presented in a relatively low-cost gift box. As a result, a high average order value may not be necessary. Dotcom client Adore Me, a subscription-based intimate apparel e-retailer who is disrupting the market, is an excellent example. For online retailers of larger or more fragile products, a different solution would be needed. The key is to understand the required experience and the options available based on the types of products being sold, and to factor in a realistic budget.
Lovely wrapping is expensive, right? How can retailers save money?
Providing premium packaging does not have to be expensive. Customized shipping cartons can provide a great branding opportunity, adding value and beauty to the presentation without necessarily adding significant costs. In fact, adding a logo to the outside of the carton may not add any cost at all. Adding white interiors to a traditional brown box with an inside logo provides a very rich-looking affect and adds just a small cost. These are just samples of creative options that do not need to be expensive to create the “wow” factor.
What is the potential ROI for a retailer who ups their ante on packaging?
The accepted thinking is that by essentially re-selling the brand at the time of the delivery – and presenting the products in a way that makes the customer feel as if they’ve purchased a gift for themselves – that feeling of connection to the brand will result in more re-orders and, ultimately, a higher lifetime value for that customer.
The new reality is that consumers receive 3-5 deliveries per month as a result of online shopping. Among the brown and unbranded boxes, premium packaging stands out to not only the recipient, but also to neighbors and friends who notice the package on the customer’s doorstep. Further, if a consumer regularly purchases from a brand with premium packaging, the package becomes one he or she looks forward to receiving. This, in a way, emulates the retail experience.
A great example is our client Birchbox. Simple tissue paper and a pink, branded box is all it takes to spark a conversation between Birchbox subscribers and house guests or neighbors. Upon seeing the box – sometimes regardless of whether a product is inside – a friend will comment and likely get an instant pitch from the owner of the box. That’s ROI – a brand impression due to packaging.
How can a retailer reconcile the inherently disposable nature of packaging and the need for brands to be environmentally responsible and sustainable?
Each retailer needs to determine their commitment to the environment and incorporate that position into their packaging strategy. There are many options in terms of the type of packaging materials available that contain varying percentages of recycled material. Balancing the use of recycled material can offset added materials to enhance the presentation. In many cases, there would not be “extra” material required to develop a more beautiful package. The retailer can also look at other possibilities such as eliminating pack slips or even using “carbon credits” that would result in a zero carbon footprint.
