How to launch successful new products in the omnichannel age

At the Digital Shelf Summit in April, I had the chance to dive into the topic of successful product launches with Laura Hyland, BIC’s Global VP of Digital & Commercial Strategy. As many of you know, I can’t resist a good analogy to help make sense of a business challenge. So with this year’s conference happening in New Orleans, my framework for product launches took inspiration from a vital part of the region – the Mississippi River. 

When you think about it, new products are a lot like boats. Some are speed boats, quickly accelerating sales. But others are steam boats, never really ramping up to the expected level. And most fall somewhere in between, like swamp boats – chugging along, but not necessarily standing out. 

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Innovation done right can spark brand and category growth – and in our recent environment of sluggish retail growth, that’s more important than ever. CPGs by and large recognize the important role of innovation. But as with many critical functions across eComm and omnichannel, digitally influenced shoppers are changing the game and it’s time to rethink the launch playbook. 

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In the omnichannel age, launching a ‘speed boat’ is harder than ever

Various estimates suggest that around 70-90% of new product launches fail, and the complexities of omnichannel and the digital shelf likely play a role in this. 

1. The digital shelf is more competitive. There’s no shortage of choices for consumers in the physical store, but that pales in comparison to the digital shelf, where tens of thousands of products compete for prime real estate. 
2. Standing out on the digital shelf is more costly, but brands can’t afford to underinvest. In the age of digitally influenced shoppers, winning the digital shelf is a key milestone for eventual omnichannel success. The challenge is how to balance retail media and digital content investments with traditional in-store marketing.
3. Shoppers are more informed – about the good and the bad. The nature of the digital shelf encourages online shoppers to scrutinize every aspect of your launch, from pricing to messaging. Reviews provide unfiltered, real-time feedback on every aspect of the consumer experience. For new products where those reviews are just starting to trickle in, each buyer’s experience carries outsized weight. 

To add even more complexity, many brands remain in a transition state as they gradually adapt their business model to accommodate omnichannel shoppers.

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What do successful product launches have in common?

We used our comprehensive digital shelf data to track hundreds of products across 9 categories on Amazon 1P for a year post-launch to see what separates speed boats (the top 20% of products by unit sales) from steam boats (the bottom 20%). 

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Below are some of the key findings from our research, as well as Laura’s pro tips from her direct experience launching new products at multiple CPG brands. You can see our full presentation here. 

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Four characteristics of a successful new product launch

Success boils down to four key factors: trust, reach, coordination and metrics. 

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TRUST 

Brand recognition alone isn’t enough: successful product launches invest in building trust with shoppers. The old playbook of sampling and national media still works – but the best launches will also lean on the power of online rating & reviews to accelerate both online and in-store sales. 

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New products see a 72% sales uplift when they earn their first 50 reviews. And how fast a new product earns its first 50 reviews is a leading indicator of whether it’ll be a speed boat or a steam boat after one year on the market. 

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How BIC builds trust:

1. Combine the best of traditional launches (such as EZ Reach lighter endorsements from Snoop Dogg and Martha Stewart) with digital trust-building investments such as Bazaarvoice, Vine, Review Accelerator and syndication services.
2. Build the innovation timeline with a firm expectation of launching online before in-store. An early online launch builds momentum and tees up omnichannel success.

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Pro tip: Monitor early reviews closely. Reviews provide valuable feedback on many aspects of the launch: for example, do consumers understand how to use the product (e.g., for detergent pods, does the PDP content provide clear instructions to prevent misuse)? 

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REACH 

Successful new products don’t hold back: they blanket physical and digital real estate to attract shopper attention from all directions. 

There’s a common myth that the digital shelf is an “endless aisle.” In reality, consumers rarely look past the first page of search results – and on mobile, only a handful of products are displayed at a time. 

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Earning the top search result spots is essential. Speed boats reach page 1 of search results within 95 days of launch – almost a full month before steam boats – and two-thirds of steam boats never reach page 1. 

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How BIC maximizes reach: 

1. When relaunching their 4-color pen in the U.S., BIC kickstarted sales by anchoring their launch to a key tentpole event: back-to-school. This earned them extra reach through Amazon’s physical lookbook as well as placements in Amazon’s back-to-college media. 

2. Apply content optimization and discoverability lessons from new product launches to the existing core portfolio – such as the classic pocket lighter. These products might not be new and shiny, but with a high sales volume, moving the needle can be enormously valuable.

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Pro tip: Optimizing PDP content for high organic search placement is important in the long term. But in the initial stages of a launch, investing in retail media is crucial for ramping sales – paired with frequent, competitive promotions to convert. 

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COORDINATION

Speed boats are supported by cross-functional coordination, both internally and with retail partners. But this is easier said than done; 70% of CPGs cite organizational silos as a top barrier to omnichannel success. Retailers struggle with silos, too.

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How BIC drives coordination: 

1. A national media campaign supporting the EZ Reach lighter launch was coordinated closely with Walmart. Cross-functional teams from BIC and Walmart enhanced the launch with omnichannel media placements on celebrity social media pages, Walmart’s Facebook page, and even the TVs in Walmart stores. 

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2. Centralizing global content creation for new launches, such as the 4-Color Smooth pen, to embed PDP best practices with maximum efficiency. Individual markets adapt this optimized content as needed.

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Pro tip: Get retailers excited about the opportunity your product launch represents to grow the category. They may be willing to contribute to launch success – for example, by offering competitive organic search visibility in exchange for retail media investment.

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METRICS

Brands today have an unprecedented wealth of insights at their fingertips. By tracking the right KPIs, it’s possible to quickly “fail fast” by picking up on early warning signs that a product launch may be off track and taking quick actions to avert lost sales. Even speed boats don’t always get the perfect start!

Pro tips:

• Focus on digital shelf KPIs that offer real-time, leading indications of sales performance, such as reviews and search placement.
• Leverage positive digital KPIs from your online launch (e.g., high bestseller rank) to advocate for your fair share of in-store shelf space. 
• See our full list of pre-flight and in-flight metrics to live by here.

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In summary

1. Build cross-functional components into launch plans, and involve retail partners in the early stages. 
2. Gain traction through an early online launch. This allows you to accrue reviews that build trust and act on early feedback. Learn more about ratings & reviews best practices here. 
3. Get content right at the pre-flight stage. Tools such as Profitero’s Content Optimizer can embed best-in-class keyword benchmarks into your PDP copy to give you the best shot at winning organic search. A centralized content creation process with flexibility to adapt for local markets makes it easier to scale. 
4. Set the right digital shelf KPIs so you know when and how to pivot. Category-wide daily data is essential to arm yourself with leading indicators of product launch success. Establish a system for sharing data across teams to promote better agility.

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Access the full presentation

For a deeper dive into the art and science of new product launches, download the full presentation here. You’ll get: 

• Our brand-new research that reveals what top launches get right
• An exploration of omnichannel complexity with guidance on aligning retail media with product strategy to accelerate performance
• Metrics to live by: essential KPIs for the pre-flight and in-flight stages of your product launch to start strong and pivot with agility
• More pro tips to ensure your next product launch is a speed boat that turbocharges brand growth

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