Packaging Optimization: A Handy Guide to Help Achieve Higher Levels of Customer Satisfaction

What’s the first thing that comes to mind when you think about packaging?

Functionality? Appearance? Hands up if you said “opportunity”.

I’m not seeing many hands up in the room.

It might seem like an exaggeration to say so, but optimizing your packaging solutions really can present a superb opportunity for your business.

Taking a long, hard look at the packaging you use to get your products to market can pay dividends. Not only can you cut costs, but also increase customer engagement and satisfaction. The right packaging sends a message, so make sure you’re giving your customers a good one.

In this article, I’ll explain the benefits of packaging optimization and set out a plan for how to implement the process. You’ll learn about how small changes in packaging can make a big impact on your bottom line.

First, let’s look at what packaging optimization involves.

What is packaging optimization?

In essence, packaging optimization is the process of fine-tuning the packaging you use to make it as efficient as possible. It involves examining each individual aspect of your packaging choices separately and finding ways to improve them.

It’s also about taking a holistic look at your packaging solutions within the context of the distribution chain. The overall goal is to reduce the amount of packaging used while retaining the quality necessary to deliver your product safely to your customer.

Whether you’re a multinational corporation delivering products worldwide or a small start-up considering how to fulfill an order on shopify, you can benefit from this process.

Benefits of packaging optimization

All too often, businesses can get stuck in the trap of treating packaging as an afterthought. When you’re focusing on product development or generating sales leads, it can be easy to overlook the importance of the boxes you’re using to get your product to market.

It’s so important to get it right, though. Getting serious about packaging optimization can lead to a phenomenal increase in ROI for your business. And we’re not just talking about cost reduction—although that’s a given. Any modern business needs to keep a close eye on customer satisfaction, and rethinking your packaging solutions can give those CSAT scores a useful boost.

So let’s take a look at some of the key benefits to be gained from optimizing your business’ packaging.

Cost reduction

It’s certainly true that you can save a lot of money by using cheaper materials. However, it’s important to note that this can turn out to be a false economy. It’s vital to avoid packaging design mistakes. The last thing you need is to switch to using thinner cardboard boxes only to find your parcels are getting damaged in transit. The resulting rise in wastage could end up costing you much more in the long run, not only in broken stock, but also in customer goodwill.

So when considering potential cost reductions, you need to think about the full range of costs in the supply chain impacted by your packaging choices. Broadly speaking, these will fall into the following categories:

• Materials
• Labor
• Warehousing
• Shipping
• Wastage

Luckily, doing a package optimization audit can reveal terrific opportunities to reduce all of these costs in parallel.

For example, shipping charges are often set by dimension rather than weight alone. This means that finding ways to reduce the amount of material used in your packaging—by, say, reducing the amount of space inside your packages—will help save on freight costs too. Not to mention lower the amount of overall storage space required, saving on warehousing costs.

And of course, there are labor costs. Optimized packaging solutions can help limit the amount of time staff are obliged to spend on packing up products, freeing them up for more important tasks. And let’s face it: which sensible employer doesn’t want to find ways to avoid overworking their employees?

Sustainability

Shifting consumer attitudes over the past decade have meant that no modern business can afford to ignore sustainability. Happily, the very nature of the package optimization process dovetails with this need perfectly. It’s a great opportunity to showcase your corporate responsibility credentials via environmental awareness.

Use too little packaging, and you risk products arriving damaged. Use too much, though, and customers may well end up frustrated or question your commitment to sustainability. Just think back to all those times you’d ordered something tiny, and it arrived in an oversized box. Annoying, right? All you wanted was a deck of playing cards and suddenly, you have 10lb of cardboard to get rid of.

There’s a better way. These days, innovations in eco-friendly packaging are everywhere, so finding the correct balance doesn’t need to be a problem. Consider materials made from wood pulp, such as glassine or kraft paper, or compostable options like green cell foam or cellulose packaging.

Customer satisfaction

The first thing your customer sees when your product is delivered is the packaging. First impressions are critical, so make it count.

It goes without saying that the most important consideration is that the product arrives undamaged. According to the National Retail Federation, $102 billion in goods bought online were returned in 2020. That’s a staggering 18.1% of total online sales.

But assuming your product makes it to its intended destination in one piece, the packaging it arrives in can function as a brand ambassador. Good packaging is more than just a container, it’s a way of using design to make a personal connection with your customer. An excellent unboxing experience can earn your company valuable word-of-mouth recommendations.

The range of options available now for package design is immense. Packwire offers different kinds of packaging such as mailer boxes, shipping boxes, folding boxes and even rigid boxes. Enhance your brand by impressing your customer with an attractive design that sticks to eco-friendly principles.

The packaging optimization process

All businesses—from the smallest home crafting operations to the most innovative proptech companies—are looking for ways to improve their offering day by day. I hope I’ve persuaded you by now that packaging optimization is a great way to do this. But how do you go about it in a systematic way?

Here’s how it works.

Step 1 – study the product

It sounds obvious, but each product is different. Start by assessing what the most critical needs are and work from there. Does your product need to be kept fresh? Is it fragile? An unusual shape?

The current packaging may meet these requirements but in an inefficient way. Thinking creatively is key. In the modern world, it pays dividends to consider alternatives rather than sticking with what we know: alternatives to our usual diet, alternatives to zoom, alternatives to our everyday lifestyle. Be your own disruptor and take advantage of new ideas.

Step 2 – study the supply chain

Once the product leaves your premises, it will be subjected to all kinds of treatment. It may be exposed to humidity, air or rough handling, for example. Determine the conditions all along the supply chain. Then make sure your packaging is up to the task.

Step 3 – design some options

This is where you let your imagination loose. There are many fun ecommerce packaging ideas already out there for you to take inspiration from. Or maybe you can innovate and come up with something better?

Step 4 – testing

Before you send out your new packaging into the world, it’s vital to do proper testing. That means subjecting it to the supply chain conditions you identified in step 2. You can replicate road stress by using vibration machines, for example. At this stage, it’s worth hiring engineering expertise to do the job properly.

Putting all your packaging options through this is a terrific way of finding out which performs best.

Step 5 – review

No matter how much testing you do, you won’t know how your new packaging will perform in the wild until it’s out there. So it’s important to keep everything under review. Keep an eye on wastage and be ready to rethink if necessary.

Packaging optimization is an iterative process. Using real-world feedback is crucial for making incremental improvements over time. Modern smart packaging solutions with embedded sensor tech can make this job easier. You can use them to trace your packages through the supply chain and control the environment of your products in transit.

Solution in a box

The past few years have seen companies dealing with a range of new challenges, such as how to implement pandemic protocols and how to manage a remote workforce. So it’s understandable if packaging hasn’t been your top priority.

For any forward-looking business, though, taking a serious look at the packaging choices you make can have a profound impact on the bottom line. The cost savings can be substantial, yes. But the benefits to be reaped in terms of customer engagement and satisfaction should not be overlooked.

A little emotional intelligence, creativity and a good testing system is all it takes. Optimizing your packaging solutions represents a wonderful opportunity. So why not get started today?

Grace Lau - Director of Growth Content, Dialpad

Grace Lau is the Director of Growth Content at Dialpad, an AI-powered business phone system for better and easier team collaboration. She has over 10 years of experience in content writing and strategy. Currently, she is responsible for leading branded and editorial content strategies, partnering with SEO and Ops teams to build and nurture content. Grace Lau also published articles for domains such as Tapfiliate and Easy Affiliate. Here is her LinkedIn.