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How Can CPG Companies Become Digital Leaders?
Jeff Hunt, CEO of Snap36, discusses the advantages of 360° and 3D product photography in enhancing customer experience and reducing return rates in online shopping. He identifies how new technologies and automated processes enable cost-effective and consistent image production, ultimately boosting conversion rates. The document also highlights consumer demand for clear visual information when purchasing products online and the anticipated growth of digital penetration in the CPG market.
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How Can CPG Companies Become Digital Leaders?
- 1. Presented by JeffHunt, CEO, Snap36 February 18 2015 360° & 3D Product Photography
- 2. An online marketingveteran, Jeff Hunt spent ten years at Adobe-Scene7 energizing his passion in rich media, merchandising and user experience. After opening Scene7 offices in Chicago, London, Paris and Hamburg, Jeff listened to his clients and recognized an unmet demand for spin photography. Inspired to offer a more visually interactive online experience, Jeff founded Snap36 to deliver turnkey photography services and provide the equipment, technology and expertise needed to implement 360° & 3D spin photography. JEFF HUNTCEO & FOUNDER OF SNAP36 www.snap36.com
- 3. WHY THE MARKETWAS WRONGCOMPLICATED AND COSTLY Expensive High cost compared to traditional static photography Technology Complicated, manual process Relied on Flash based solutions High Barrier to Entry Market was dominated by a few companies www.snap36.com
- 4. WHY THE MARKETIS RIGHTNEW TECHNOLOGIES ü Robotic Equipment ü Workflow Software www.snap36.com New technologies allow for mass production of imagery Software integrates with robotic equipment to automate image capturing and studio management Industrial strength robotic equipment can be configured to shoot any product size CLICK TO VIEW VIDEO
- 5. WHY THE MARKETIS RIGHTBETTER IAMGES BETTER EXPERIENCE www.snap36.com CONSISTENCY MORE PRODUCTS IN LESS TIME Laser system and intelligent equipment provides consistent product positioning and angle accuracy Automated process allows you to shoot 24 product images in 90 seconds. REDUCED RETURN RATE Providing more visual information builds purchase confidence and increases conversions 30% to 40% Reduce return rates by 25% to 45% and call center costs by up to 50% INCREASE CONVERSION RATE
- 6. WHY THE MARKETIS RIGHTMATURING MEDIA AND FLEXIBLE DELIVERY OPTIONS www.snap36.com ü 360° Product Photography The product rotates on a single row, while the camera takes pictures at specified degree intervals. Typical 360° photography is shot at every 15° resulting in 24 images. ü 3D Product Photography The product is shot in 360° on multiple rows. Two row 3D photography results in 48 images. Three row 3D photography results in 72 images. ü 3D Modeling/CGI Digital framework is created and graphic layers are applied or created to “build” a virtual object.
- 7. WHY THE MARKETIS RIGHTTHE PROCESS www.snap36.com Products received and sorted Assembled by case, inner pack, product Weights and measures Images captured using robotic equipment and software Images exported and named in a viewer ready format Images uploaded to DAM CLICK TO VIEW PRODUCT SPIN EXAMPLES
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- 9. WHY THE MARKETIS RIGHTINDUSTRY MOMENTUM www.snap36.com ü GTIN tracking enables better discovery and purchasing on the web ü Commercial DAMS supporting GDSN interface
- 10. WHY THE MARKETIS RIGHTTHE FLEX SHOPPER www.snap36.com Comprehensive Information Customer Experience Technology Adoption Shopping Convenience 55% of consumers prefer to buy online 43% of mobile users don’t purchase because they can’t get a clear enough image 1/3 of consumers are not satisfied with the amount of product or visual information 94% agree that B2B customer experiences should mirror at-home experiences
- 11. 75% 27% 41% 51% 50% 96% 88% 55% 91% 67% 58% 20% 23% 23% 26% 23% 4% 9% 28% 8% 21% 28% 5% 50% 36% 23% 27% 3% 17% 12% 13% Ability to customizean item (style, fabric, colors, monogramming) Links to social sites to share items for feedback Product videos contributed by other users/shoppers Product images contributed by other users/shoppers Live chat to talk with customer support about products Images of all available colors and patterns of an item Customer ratings, comments and reviews Video demonstrating feature highlights with product experts Ability to turn products around in a full 360-spin and zoom on any perspective Download images in higher resolution Predetermined zoom areas on images with overlaid information Most Useful (4-5) Neutral (3) Least Useful (1-2) *Adobe ‘What Shoppers Want’ Survey DIGITALLY DRIVEN DEMANDCONSUMERS EXPECT TO BE CONNECTED, EMPOWERED, INFORMED www.snap36.com
- 12. What visual featureswill increase your likelihood to make a purchase on your mobile device? *Adobe Mobile Consumer Survey 43% 42% 39% 33% 32% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Product side-by-side comparisons 360° spin of a product Interactive zoom or pan of a product Video Multi-media www.snap36.com DIGITALLY DRIVEN DEMANDCONSUMERS EXPECT TO BE CONNECTED, EMPOWERED, INFORMED
- 13. CASE STUDY Major industrialsupplier measured how enhanced content impacted sales 3.8% VIDEO 2.4% ALTERNATE PRODUCT VIEWS 1.7% TECHNICAL DOCUMENTS 4.2% ADDITIONAL PRODUCT COPY 6% 360° & 3D PRODUCT PHOTOGRAPHY www.snap36.com
- 14. CASE STUDY www.snap36.com 3X MORE SALES “360°& 3D spins help us convert engaged customers by giving them a comprehensive visual understanding of the product. It helps them buy more confidently. Once customers are engaged in a spin image, they are 3x more likely to convert.” Rob Cassidy President & COO, eBags
- 15. www.snap36.com INDUSTRY ADOPTIONSHIFTS INTHE LANDSCAPE GS1 IMAGE STANDARDS • Mentioned under Interactive Digital Assets AUTOCARE COMPLIANT • Mentioned in PIES as receiving attention in the marketplace • Images can be transmitted to meet PIES GOOGLE SHOPPING • 360° Product Images Account for manufacturers • 360° images displayed on Google Shopping and Google Product Listing Ads
- 16. LOOKING AHEADPROPOSED CHANGESTO NUTRITION FACTS LABEL • Changes based on nutrition science • Updated serving size requirements and labeling for certain packages • Refreshed design Despite the cut-and-dried nature of the nutritional label changes—which, unlike front-of-label packaging, marketers have no control. These changes will affect food marketing, and companies need to consider how to respond. NO ASPECT OF THE FOOD INDUSTRY WILL BE UNAFFECTED BY THESE CHANGES MARKETING IS NO EXPECTION www.snap36.com The U.S. Food and Drug Administration announced that January 1, 2018 will be the uniform compliance date for food labeling regulations that are issued in calendar years 2015 and 2016.
- 17. LOOKING AHEAD1-5-10 MARKET 1%5% 10% The CPG industry is approaching a tipping point; companies need to plan for a “1-5-10” market in the U.S. over the next five years. Digital’s current 1% penetration of the U.S. CPG market will likely expand to 5% by 2018 and could accelerate to as much as 10% soon thereafter. The experience of other sectors demonstrates that early movers often establish tough-to-trump positions and advantages. This is both a formidable challenge and an enormous opportunity for CPG manufacturers. Digital penetration of 5% represents nearly ½ of total CPG growth over the next 5 years, meaning that companies without an effective digital capability risk stagnation, loss of share, and even shrinking sales. www.snap36.com 2015 2019
- 18. LOOKING AHEADEVOLVING CUSTOMERJOURNEY www.snap36.com Website Visit Facebook Like Open Email Offer Mobile Site Visit Store Visit Website Visit Digital shopping has evolved very quickly into a highly complex ecosystem that has fundamentally reshaped—and continues to redefine—the way consumers engage with brands and purchase products. Online consumers are heavy users of supplier- and retailer-sponsored websites, and they increasingly expect manufacturers to have great content online. Digital content is especially apparent and critical in the search and discovery phase of the customer journey.
- 19. www.snap36.com THE BEST WAYTO PREDICT THE FUTURE IS TO CREATE IT Digital innovation has created entirely new patterns of expectation. Consumers, who are enjoying the convenience and value of digital services in other aspects of their lives, expect these benefits in grocery as well. Retailers and suppliers are under acute pressure to adapt. CPG companies need to understand and shape the shifting retail landscape, because ultimately they will need to participate in new distribution models. FROM NOW ON, TECHNOLOGY ENABLED INNOVATIONS WILL DRIVE MUCH OF THE GROWTH IN CPG
- 20. SNAP36 2140 W. FULTONST. 630.920.1070 CHICAGO, IL 60612 WWW.SNAP36.COM THANK YOU
Editor's Notes
- #6 Dual motor will reposition in an event of a misfire. Home Depot increased product accuracy rate to over 99% Capture 10x to 20x more images for the same price of static images Brand consistent, quality images build purchase confidence. And that’s the difference between browsing and buying Spin photography increases purchase confidence and allows your consumers to know what they’re buying the first time. This is essential in the B2B world where the wrong product can cost thousands and potentially your career.
- #8 Products are shipped off site or arrive at internal studio. Products are organized and prepped for capture Assembled by case, inner pack, product Weights and measures Images are captured with our automated equipment and software Images are exported and named to meet viewer, industry and brand needs Images are uploaded based on hosting location. This may be an internal server or a third-party data asset management software Images are then deployed on your website and viewable as 360° & 3D product spins
- #9 Planogram images are at 0 degrees. They include front, back, top, bottom and both sides. Marketing images all have a 20 degree plunge. They are the front (0 degrees) and two 15 degree side angles. The 360 degree images consist of all images in a row shot at a 0 degree plunge The 3D images consist of all images in two shots shot at both 0 degree plunge and 20 degree plunge
- #16 360 degree product images are mentioned in the GS1 standards Autocare recognizes 360 degree product imagery. Images can be transmitted to meet PIES standards. Google shopping allows manufacturers to create 360 degree image accounts. Spins are displayed on Google Shopping and Google Product List Ads
- #18 The CPG industry is approaching a tipping point; companies need to plan for a “1-5-10” market in the U.S. over the next five years. Digital’s current 1% penetration of the U.S. CPG market will likely expand to 5% by 2018 and could accelerate to as much as 10% soon thereafter. Product and location will see different penetration rates. Digital already grabbed more than a 10% share in diapers. The experience of other sectors demonstrates that early movers often establish tough-to-trump positions and advantages. This is both a formidable challenge and an enormous opportunity for CPG manufacturers. Digital penetration of 5% represents nearly ½ of total CPG growth over the next 5 years, meaning that companies without an effective digital capability risk stagnation, loss of share, and even shrinking sales. 5% is penetration is close to the ‘tipping point’ in other industries where digital sales quickly escalated from 5% to 20%
- #19 The consumer purchasing pathway is more fragmented than ever before. Online consumers are already using countless platforms, websites, and mobile apps to improve their lives. These include search engines, social-media sites, and mobile “gatekeepers,” as well as “curated commerce,” “daily deal,” and “superutility” sites and apps. It’s illogical to think that consumers will continue to shop for the same goods in the same ways as they always have, visiting the grocery store, drugstore, or mass-market retailer multiple times each week. Other sectors tell cautionary tales: ten years ago, people still bought CDs in record stores, rented videos and DVDs in video stores, read print newspapers and magazines, and purchased airline tickets and hotel rooms from travel agents. When the music, video, print media, and travel industries reached their digital tipping points, they changed fast. The digital experience has already upended every stage of the traditional purchasing pathway: discover, search, locate, buy, and postpurchase. The new pathway is much more fragmented and dynamic, thanks to the ability of consumers to share their experiences and knowledge.
- #20 Consumers are embracing technologies, devices and services that make everyday tasks such as shopping, cooking and even commuting quicker, easier and more fun, and more efficient. They order online, they get suggestions and reminders on their smartphones, and they marry disparate services such as menu planning, ordering and delivering in ways that even the service provider had not anticipated. Millions of people today, in cities from Austin to Boston and from San Francisco to New York, live an updated version of home delivery from such e-commerce services as AmazonFresh and Google Shopping Express. Not so long ago consumers prepared a menu of dinners for the week, checked recipes in a cookbook, wrote out a list, and went shopping. Today, more and more people receive menu suggestions daily on their computers, tablets, or phones, order the ingredients online, and have them delivered or pick them up, already packed, on their way home from work. Some seek personalized menu suggestions from companies such as GoJee and Blue Apron, which use their food expertise and big-data analytics to shape taste preferences. Technological advancements in retail and other sectors have raised consumer expectations by demonstrating new ways that companies can deliver convenience, choice and value. Those already succeeding understand that consumers interact with products and brands in a completely different way and have developed an integrated strategy to establish a comprehensive digital presence.