Building a great brand today takes more than just creating a quality product; there is an entire experience associated with the company from the initial point of purchase to repeat business and brand loyalty. With today’s consumers being more influenced than ever by these experiences, the purchasing decision-making process has transitioned from a single factor of price/feature comparison to include multiple factors that include something called “the complete experience”.

Packaging is one of the most underestimated yet most basic and powerful elements of a brand’s complete experience. Once considered only as a means of protecting the product from damage, packaging is now a significant touch point that can influence how customers view your product, how much they trust it, and whether or not to return to the retailer. Not only is packaging often the first physical interaction consumers will have with your store or product, but it is also one of the most important moments in the customer journey.

The Evolution of Packaging

Initially, packaging served a primary purpose of protecting the product and facilitating transport. Today, however, packaging plays a much larger role; it tells your customers about who you are as a company and what your values are, while also helping you connect emotionally with them.

The importance of packaging has continued to grow, especially with the growth of e-commerce, direct-to-consumer (DTC) brands, and the number of customers who do not physically visit stores; therefore, their first encounter with your brand will be during the unboxing process. With the continuing shift towards virtual retail experiences, packaging has evolved into a premier branding and retention tool.

First Impressions Build Trust

Once a customer has received your product, they begin to form an opinion about it. If their package has been poorly packaged or has received damage during shipping, the likelihood of them trusting that company greatly decreases. On the contrary, if their package has been thoughtfully designed and is well-presented, they are likely to believe that they purchased from an exceptional brand.

If packaging feels premium, clean, and carefully planned, customers associate those qualities with the brand. Premium packaging reflects on your professionalism and attention to detail, and conveys that you care about your customers. In contrast, when customers see excessive plastic, damaged packaging, or inconsistency, they are left with questions, even though the product inside is of excellent quality.

Often, small yet impactful details lay the foundation for trust.

Packaging Reflects Brand Values

Through packaging, the brand’s commitments can be easily communicated to its audience. Use of eco-friendly or compostable packaging demonstrates to customers that the brand is aware. The product demonstrates that the company is conscious of the time and effort that may be required before they are disposed of, thus promoting a responsible image as well as a long-term perspective. Conversely, the use of excessive plastic demonstrates an inconsistent message.

The alignment of customer expectations with the values of the business is fundamental in establishing authenticity – a key factor which drives customer trust.

The Role of Sustainability in Customer Retention

Sustainability isn’t just a fad; it has become an important factor when many consumers are choosing products to buy. With the rise of eco-aware consumers, people are learning more about how their purchasing decisions affect the environment – especially regarding packaging waste.

When consumers receive a product inside a sustainable package, they feel great about the product they purchased. That positive feeling is very important to the retention of those customers because it converts a straight transaction into something much bigger.

When customers no longer feel guilty about the packaging waste, but instead feel aware and responsible for their own actions, that emotional change further strengthens their bond with the brand and the likelihood that they will be purchasing again.

Consistency Builds Reliability

Trust is not established in an instant; instead, it is built over time with consistent positive experiences. The way in which products are packed lends itself to a sense of consistency.

When consumers receive products with the same level of quality, design, and experience each time that they place an order, that builds loyalty to the manufacturer. The consumer knows what to expect, and that sense of familiarity builds the trust that they have in that brand.

If packaging does not remain consistent, it allows for confusion to develop within the consumer’s mind. This will cause the consumer to question the manufacturer’s level of professionalism and quality control. Ultimately, this can lead to a decrease in loyalty and trust in the manufacturer.

The Power of the Unboxing Experience

Unboxing has become a pivotal part of today’s consumer culture. It is more than just opening a box; it’s an experience consumers often share on social networks. 

Thoughtful design of packaging has the ability to create moments of delight through clean presentation and easy opening; small additional elements, like notes or brand logos, are also memorable and will always result in a positive association with the company. The excitement of opening a package with carefully thought-out and designed packaging creates memorable experiences, which in turn drive customers to remember and continually return. 

Customers who enjoy the unboxing experience tend to share that experience with others, recommend the brand, and return again to purchase from that particular vendor. 

Transparency Through Packaging

In an area of skepticism among customers, providing transparent packaging that allows customers to understand their purchase at the point of sale and throughout its use has never been more important. Brands may call their packaging “eco-friendly” or “sustainable,” but customers want to know how trustworthy these claims are and want proof! 

Brands have the ability to clearly convey messages through their packaging (certifications of third-party claims and environmentally friendly materials), which creates an emotional connection and thus builds trust and loyalty on behalf of the customer. 

When customers feel they can trust and therefore know what they purchased is environmentally safe and disposable, they feel proud of their purchase and support the vendor who provided it to them.

Reducing Customer Guilt

The emotional factor associated with packaging is often ignored by retailers, but it has been well documented how packaging can cause feelings of guilt after a purchase has been made. 

Customers today are concerned about packaging waste and its impact on the environment and the company they support, and as such, have become increasingly selective about the retailers they shop with. 

Regardless of how eco-friendly/ sustainable a company claims its packaging is, if a customer receives their order and feels guilty about having environmentally harmful materials in their home after their order has been received, they will likely not be a return customer.

Packaging Influences Perceived Value

How customers view a product is strongly affected by packaging (in appearance at least) prior to using it. Good-quality packaging can provide added credence to the quality or value of a product, help create a trustworthy and superior image of the product, and influence their opinion or emotions toward that product. 

All of this leads to perceived value, which is important because customers will tend to stick with products and companies that they feel offer a good value for their money and provide consistent quality.

In highly competitive markets, perception can be every bit as important as the product itself.

Convenience Matters More Than You Think

Usability and convenience are overlooked as important elements of packaging design and sustainability. A customer’s experience can be ruined by a product that is difficult to open, messy, or unreasonable to dispose of.

On the flip side, simple, practical, and “user-friendly” packaging creates a more positive overall experience for the customer, even though it may seem to be unimportant. That positive experience will likely lead to repeat customers, whereas a negative experience will most likely drive customers to look for alternatives.

Packaging as a Long-Term Investment

A lot of companies treat packaging as an expense to be minimised, not realizing that it will have a long-lasting effect.

Packaging adds to the trust your customer has in your brand, enhances their experience with your product and will create a larger lifetime value of your customers. This means that you will require fewer new customers to acquire over time and this can cost significantly more money than keeping your current customers.

When packaging is viewed from a long-term view, it becomes an investment rather than an operational cost.

The Future of Packaging

The future of packaging includes: sustainability, innovation, and customisation of your product. Consumers are going to want more from the brands they use, not just in products, but in the manner in which they receive the products, too.

By focusing on responsible packaging early on, companies will create strong relationships with their customers and maintain a competitive advantage.

Final Thoughts

Packaging is much more than just a barrier between your customers and your goods. It is the embodiment of your brand.

Each package you send out tells a story about the quality of your products, your principles and how committed you are to serving your customers. If done correctly, packaging builds trust, forms emotional attachments, and generates repeat business through long-term loyalty.

At the end of the day, customers may not remember the specific products they purchased but they will remember how you made them feel.