For smaller businesses just starting out, product labelling strategy isn’t always a top priority.
Businesses new to the market tend to focus most of their time and efforts into the daily processes of a business, and may not necessarily have the time, resources or manpower to contribute to labelling strategies.
However, this can be a critical mistake; creating a successful labelling strategy can become an inexpensive way to promote your products further and to encourage the retention of your existing customers.
In this article, we outline some key methods for creating a successful labelling strategy so that you can encourage customer retention and create more brand awareness.
3-step labelling strategy
Step 1: The Planning Stage
The first step toward developing an effective labelling strategy is to think about and plan what you want your brand to "say". That is, what is your brand's key message? What is your brand's voice? Identifying these things will help you make decisions further along in the process including decisions around packaging, design, labelling and more. Things to consider when thinking about your brand identity include everything from who your target audience is, how your identity will be unique against your competitors and then, how you can use your identity in your labelling strategy.Step 2: Convey Your Identity Through Your Labelling Strategy
Once you’ve identified your brand and identity, you need to embed these things within your labelling strategy. Things to consider include packaging — what type of packaging conveys your brand identity while still being practical and affordable? For example, if your brand identity is centred on being environmentally friendly, you’ll want to ensure you follow through with this in your packaging by using eco-friendly packaging materials rather than plastic, for instance. Secondly, consider how you can embed your brand identity in the text and imagery used on the packaging. This includes everything from your logo, to the weight or dimensions of the package, ingredients list (if relevant) and of course, the product description. If your target audience is younger, for example, think about whether the language used on your packaging should be more informal. During this step, you’ll also want to ensure your logo is memorable. Make sure it is unique and if possible, get it professionally designed. A memorable logo will make it easier for customers to come back to you next time for future purposes.Step 3: Taking Care of The Practicalities
Your labelling strategy can’t only be about your brand identity, however. It is just as important to ensure you’re getting across the information that the customer needs to know when they've received a package from you, especially information like your returns policy and warranty information. You should also provide the necessary information for customer services purposes - if the recipient has questions about their purchase, make it easy for them to get in touch. By following the above steps, you’re simultaneously fulfilling a customer order while also promoting your brand and encouraging the customer to stick around.Internal aspects and benefits of a good labelling strategy
Better organisation
Barcodes are great for keeping track of inventory and ensuring the warehouse is perpetually organised in a very logical way. The benefits of this is reduced errors when storing and picking products, and reduced wastage from products being forgotten about and subsequently expiring or becoming obsolete.Fewer errors
Clear labels facilitate accurate perception and handling of products. This is also applicable internally to your packing team for example, where quick and accurate picking of product is essential so that correct orders are shipped out and customer satisfaction is maintained.Accurate specifications and dissemination of information
Part of training a good staff is ensuring that they know the products they are selling well, and can field any questions potential buyers may have. This information is contained in product manuals, but sometimes, accurate information is needed quickly which can be gained from the product label.External aspects and benefits of a good labelling strategy
No opportunity for confusion
An important benefit of having a good product label is the easy identification of your own products in a line-up with your competitors. Of course, we are talking about a tall, long supermarket shelf laden with several different competitors, all claiming their product is superior. You definitely want to stand out and ensure your label is easily distinguished.Opportunity to speak volumes
When a customer is perusing a store for a potential purchase, they are not necessarily able to speak to its developers to ask questions, nor are they able to open the packaging and try the product right there. So what creates a lasting impression and builds the story you want them to believe? Your label. It is your first opportunity to grab the customer’s attention, so do not use it lightly.