CPG brands that rely solely on retail partnerships are missing 73% of potential customer lifetime value, according to recent industry data. The key difference? Direct-to-consumer relationship building through strategic email, SMS, and loyalty programs that transform one-time buyers into brand advocates.
Why CPG Brands Need Direct Customer Relationships
Traditional CPG marketing meant putting products on shelves and hoping for the best. You’d run some ads, maybe sponsor an event, and cross your fingers that customers would remember your brand next time they’re shopping.
That approach doesn’t work anymore. Here’s the thing – when customers buy your product through a retailer, you’re essentially invisible in that transaction. You don’t know who bought it, why they chose your brand, or whether they’ll buy again.
Building a direct community changes everything. You gain:
- Customer data and purchase insights
- Direct communication channels
- Ability to influence repeat purchases
- Higher profit margins on direct sales
- Protection against retailer dependencies
The reality is that CPG brands with strong community programs see 25% higher customer retention rates and 15% better profit margins compared to those relying solely on traditional retail channels.
Email Marketing for CPG Brand Community Building
Starting Your Email Strategy
Email remains the backbone of CPG community building. Unlike social media, where algorithms control reach, email lands directly in your customer’s inbox. You’re not competing with a cluttered feed – you have their attention.
Most businesses miss this: successful CPG email marketing isn’t about selling products in every message. It’s about providing value that makes customers excited to hear from you.
Content That Builds Community
Your email content should educate, entertain, and engage. Here’s what works:
- Recipe ideas and usage tips: If you sell food products, share creative recipes. For cleaning products, provide cleaning hacks.
- Behind-the-scenes content: Show your production process, introduce team members, share your brand story.
- Customer spotlights: Feature customers using your products in creative ways.
- Industry insights: Share trends and news relevant to your product category.
- Exclusive previews: Give subscribers first looks at new products or flavors.
Segmentation for Better Results
Not all customers are the same, and your emails shouldn’t be either. Smart segmentation improves open rates by up to 39% and click-through rates by 28%.
Consider these CPG-specific segments:
- Purchase frequency (frequent vs. occasional buyers)
- Product preferences (specific flavors, sizes, or product lines)
- Geographic location (for regional products or promotions)
- Engagement level (highly engaged vs. inactive subscribers)
- Customer lifecycle stage (new, returning, at-risk, churned)
SMS Marketing: The Direct Line to Customers
Why SMS Works for CPG Brands
SMS has a 98% open rate compared to email’s 22%. That’s powerful, but it comes with responsibility. Customers give you permission to text them – don’t abuse it.
SMS works best for:
- Time-sensitive promotions
- Restock notifications
- Flash sales and limited-time offers
- Important product updates or recalls
- Loyalty program notifications
SMS Best Practices for CPG
Keep messages short, valuable, and actionable. Here’s what good CPG SMS looks like:
Product restock: “Your favorite vanilla protein powder is back in stock! Get yours before we sell out again. Shop now: [link]”
Flash sale: “24-hour flash sale: 30% off all energy bars. Use code FLASH30. Ends tomorrow at midnight.”
New product launch: “Be the first to try our new chocolate chip flavor! Early access for VIP customers starts now.”
Timing and Frequency
Most businesses get SMS frequency wrong. Too many messages and customers unsubscribe. Too few and you lose impact.
Start with 2-4 messages per month and adjust based on engagement rates. Send messages between 10 AM and 8 PM in your customer’s time zone. Avoid early mornings and late evenings unless it’s truly urgent.
Building Effective CPG Loyalty Programs
Points-Based vs. Tier-Based Systems
The most common loyalty program mistake? Making it too complicated. Customers should understand your program immediately.
Points-based programs work well for CPG brands because they’re simple: buy products, earn points, redeem rewards. Customers earn points for purchases, referrals, social media engagement, and other brand interactions.
Tier-based programs create more engagement by offering increasing benefits as customers reach higher tiers. Bronze members might get early sale access, while Gold members receive free shipping and exclusive products.
Reward Types That Drive Engagement
This might surprise you: discounts aren’t always the most effective rewards. Consider these options:
- Free products: Sample sizes of new items or full-size products
- Exclusive access: Limited-edition flavors or early product launches
- Experiences: Virtual cooking classes, behind-the-scenes tours
- Charitable donations: Let customers donate points to causes you support
- Co-branded rewards: Partner with complementary brands for unique offerings
Program Integration
Your loyalty program shouldn’t exist in isolation. Connect it to your email and SMS campaigns:
- Send welcome emails to new loyalty members
- Text customers when they’re close to earning rewards
- Email monthly point summaries and available rewards
- Use SMS for time-sensitive loyalty promotions
Creating Synergy Between Email, SMS, and Loyalty
The Unified Customer Journey
Here’s where most brands fall short: they treat email, SMS, and loyalty as separate channels instead of parts of a connected experience.
Smart CPG brands create customer journeys that span all three channels:
New customer sequence:
- Welcome email with brand story and first-purchase loyalty bonus
- Follow-up email with usage tips and recipes
- SMS opt-in offer with exclusive discount
- Email introducing loyalty program benefits
- SMS reminder about expiring welcome bonus
Cross-Channel Messaging
Your messaging should feel consistent across channels while using each channel’s strengths:
- Email: Detailed product information, recipes, brand stories
- SMS: Quick updates, urgent offers, simple reminders
- Loyalty program: Exclusive perks, member-only communications
Measuring Success and Optimization
Key Metrics for CPG Community Building
Track metrics that matter for your business goals:
Email metrics:
- Open rates (aim for 20-25% in CPG)
- Click-through rates (2-4% is typical)
- Conversion rates from email to purchase
- List growth rate
- Unsubscribe rate (keep below 0.5%)
SMS metrics:
- Delivery rates (should be 95%+)
- Open rates (typically 95%+)
- Click-through rates (6-8% is good)
- Opt-out rates (keep under 5%)
Loyalty program metrics:
- Program enrollment rate
- Active member percentage
- Points redemption rates
- Member vs. non-member purchase frequency
- Customer lifetime value by tier
Testing and Improvement
Continuous testing drives better results. Test these elements regularly:
- Subject lines and send times for emails
- SMS message timing and frequency
- Reward types and point values
- Loyalty tier benefits and requirements
- Cross-channel message sequencing
Common CPG Community Building Mistakes
Over-Promotion
The biggest mistake? Making every message a sales pitch. Follow the 80/20 rule: 80% valuable content, 20% promotional messages.
Ignoring Mobile Optimization
Over 70% of consumers read emails on mobile devices. If your emails don’t look good on phones, you’re losing customers.
Weak Loyalty Program Value
Loyalty programs fail when rewards take too long to earn or aren’t valuable enough. If customers need to spend $500 to earn a $5 reward, they won’t engage.
Inconsistent Messaging
Your brand voice should be consistent across email, SMS, and loyalty communications. Mixed messaging confuses customers and weakens brand trust.
Advanced Strategies for Mature Programs
Predictive Analytics
Use customer data to predict behavior and send proactive messages:
- Reorder reminders based on purchase history
- Churn prevention campaigns for declining engagement
- Personalized product recommendations
- Seasonal preference predictions
User-Generated Content Campaigns
Encourage customers to create content featuring your products. Run campaigns that reward customers for sharing photos, recipes, or reviews. This creates authentic marketing material while building community engagement.
Referral Program Integration
Turn loyal customers into brand advocates with referral programs. Reward both the referrer and new customer, and promote your referral program through email and SMS channels.
Building Your CPG Community Strategy
Creating a thriving CPG brand community through email, SMS, and loyalty programs isn’t just about technology – it’s about building genuine relationships with customers who love your products. The brands that succeed focus on providing value, maintaining consistency, and treating each channel as part of a connected customer experience.
Start with email marketing to build your foundation, add SMS for direct engagement, and create a loyalty program that rewards your best customers. Most importantly, remember that community building is a long-term strategy. The relationships you build today will drive sales and advocacy for years to come.
Ready to build a community that transforms your CPG brand’s customer relationships? At Beast Creative Agency, our certified specialists use AI-enhanced campaigns and radical transparency to deliver personalized strategies that maximize ROI. Let’s create a community-building strategy that turns your customers into your biggest advocates.
