Make it go viral: how to supercharge CPG sales through TikTok Shop
Where consumer choices are made in real-time, TikTok Shop is redefining how brands reach their audience — and it is an increasingly important platform for consumer packaged goods (CPG) brands to leverage strategically as you can do the most storytelling.
Over one-fifth (21%) of Americans use TikTok weekly, and 64% of its users believe that advertising helps them select what to buy. If your brand has demonstrable products that make for compelling visual content — think a modern-day QVC or HSN — then you need to be on TikTok Shop.
Basically, if you are looking at your product now and you can demo it, taste it, or create a visual effect, then TikTok is one of the most effective tools for attracting new customers and building brand awareness relatively quickly. We have invested in Dimension Studios, a social commerce platform specializing in TikTok Shop, which has supercharged sales for other companies in our portfolio like Final Boss Sour and Liquid Death.
But TikTok Shop is still in its infancy, which means that teams who can get up to speed and create a first-mover advantage still have the opportunity to get a leg up on their competitors, achieve virality, and establish a loyal fanbase.
Below are the need-to-know tips for how to make the most of this new e-commerce channel.
Work with the right influencers
Recruit influencers who can genuinely connect with your target audience, demonstrate strong storytelling abilities, and relate to your product. This goes deeper than the surface of looking at someone’s follower count. TikTok boosts users’ content based on the ability to sell not based on being a recognized influencer. In fact, influencers with smaller followings can be more effective, as they typically have more engaged audiences and better conversion rates. Often, people with large followings do not know how to proactively sell and tend to just push out content that is fed to them.
Since the TikTok ecosystem is relatively open, it is easy to see which content creators have been moving products. Look for people who are promoting products or categories that are similar to your business and recruit them. Let them sample your product and be sure to coach them on what works for your brand, providing key messages from them to weave into their original point of view to ensure it still feels authentic.
Integrate live selling
Live streaming commerce sales reached $50 billion in 2023 and are expected to grow to $68 billion by 2026. Consumers are drawn to the interactive and gamified nature of the live sales experience. Leverage popular live events like award shows, premieres, and sporting events to spur real-time conversations. Conduct polls, prioritize exclusive giveaways, offer limited-time discounts, and answer questions live. Cross-promote TikTok Shop live sales across other marketing touchpoints and social platforms to gain a larger audience.
Prioritize fulfillment and customer service
TikTok is chasing Amazon’s e-commerce dominance and is hyper-focused on maintaining a good reputation for fast delivery. TikTok’s Shop Performance Score (SPS) rates sellers based on product satisfaction, fulfillment and logistics, and customer service. Brands with a superior SPS are more likely to be boosted by the algorithm. On the flip side, companies with a low SPS may be restricted.
To maintain a high SPS, brands must take these factors very seriously — managing inventory properly and optimizing fulfillment. Products need to be shipped within three days of purchase, so brands must have buttoned-up supply chain systems. With 86% of consumers defining fast delivery as two days or less and 63% saying they will switch retailers if they cannot receive their items within this timeframe, fast shipping is imperative to success on TikTok Shop.
Be prepared for a large influx of orders, utilizing the ability to cap purchases at certain levels if necessary. The last thing you want is to be unable to meet the surging demand, turning an opportunity for growth into a customer service headache that negatively impacts brand perception. TikTok evaluates brands based on customer satisfaction, so response times and overservicing customers are critical, particularly to drive positive reviews that support more social sales growth.
With the right approach, TikTok Shop can become a powerful vehicle for CPG brands to acquire customers and drive sales. When establishing a presence on the platform, it is important to think creatively while still having an analytical mindset to capitalize on user trends and ensure your company has the infrastructure to support your sales efforts.
