Can custom packaging increase brand loyalty?

In 2016, Australians spent an estimated $41.3 billion on online shopping. And as this number grows, so do consumer expectations. These days, customers don’t just want high-quality products delivered fast. They also want to feel special. Creating a memorable shopping experience is now key to generating return customers. And custom packaging could be the route towards creating that desired experience.

Why packaging matters

When it comes to packaging, many online stores prioritise functionality. Of course, it’s important to ensure your product will get to the customer fast and in one piece. But it’s the small details that make your brand memorable.

In 2016, a study by Dotcom Distribution showed that 40 per cent of online shoppers are more likely to buy again when their package arrives in a premium packaging or resembling a gift. The same study also found that branded packaging encourages word-of-mouth exposure, with 50 per cent of shoppers saying the packaging makes them more likely to recommend the product to friends.

Think of custom packaging as a billboard for your brand - a simple way to create a positive, lasting first impression. There are three reasons why going the extra mile with custom packaging will make a significant difference to your brand’s customer experience.

1. First impressions count

Unless you have a retail location, this is likely the first time your customer will touch your product. Opening a package is an enjoyable, tactile experience which is why we delight in receiving beautifully wrapped gifts. A positive first impression enhances expectations for the product itself. Of the earlier 40 per cent of online shoppers who say branded packaging affects their perception of the retailer, more than two-thirds say it makes the brand feel more upmarket.

2. Emotionally connected customers are valuable

At the point of shipping, your customer has already done their research and decided to place their trust in your brand. They’re excited to receive and enjoy their new product. This gives you the opportunity to exceed their expectations.

Building brand awareness and loyalty is all about creating an emotional connection with the buyer. According to a study by the Harvard Business Review, customers who feel a genuine emotional connection with a particular brand are 52 per cent more valuable to retailers than customers who are merely ‘highly satisfied.’

Everything from textures, colours and personal notes can elevate the customer experience. You want your customer to receive your product and instantly recognise the packaging.

3. Custom packaging is shareable

In this digital age, buyers like to share their positive purchasing experiences on social media. In a study on the unboxing phenomenon by Dotcom Distribution, 40 per cent of online shoppers said they would be willing to share an unboxing video or image.

And since 88 per cent of online shoppers incorporate reviews into their purchase decision, these unboxing videos deeply resonate with their online community. At the time of writing, there are over 68.4 million unboxing videos on YouTube. So consider your custom packaging as a marketing strategy that could potentially reach millions.

Choosing the right custom packaging

Run through the following questions when deciding on your custom packaging:

Is it attractive?

Aside from reflecting your brand identity, your packaging should be aesthetically pleasing.

Does it feel nice to touch?

Consider everything from the texture and weight of your packaging (are you using a box or a satchel?) to the feel of the tissue being unwrapped (are you using crinkly plastic cellophane or tactile recycled paper?).

Is the unboxing experience a positive one?

Think back to the last online package you received. Was it a plain brown box wrapped in three layers of sticky tape and impossible to open? Your customer should feel joy while unwrapping your product, not frustration.