The majority of surveyed Australian shoppers (62%) no longer feel bounded by brand loyalty when it comes to consumer-packaged goods (CPG), according to SAP Emarsys.
The research, accompanied by a new guide from SAP Emarsys on best practices for building direct consumer engagement, is based on a survey of 2000 Australian shoppers. It discusses the current landscape where traditional brand loyalties are being redefined by consumer preferences for flexibility and convenience in their purchasing decisions.
Despite facing challenges such as supply chain disruptions and market saturation, there’s a silver lining for CPG brands, says SAP Emarsys.
“With the right tools, brands can now more easily retain customers who might otherwise be tempted to switch due to convenience, price or curiosity for something new,” it says. “The SAP Emarsys platform empowers brands to create seamless, AI-leveraged personalised experiences across all channels, making it simpler for consumers to remain connected to their preferred brands.”
According to the SAP Emarsys’ report, consumer products are also struggling with growing supply chain disruption, market saturation, and difficulty collecting and integrating the first-party data needed to target today’s consumers.
With consumers increasingly shopping around, loyalty programs are growing more important, with 31% of the surveyed CPG shoppers joining a new loyalty scheme in 2024.
Direct-to-consumer subscriptions are also becoming a key driver for loyalty. Of those surveyed who describe themselves as ‘loyal’ to a CPG brand, one in five (14%) now buy via a monthly subscription service.
To drive this type of repeat engagement, SAP Emarsys urges consumer product brands to focus on fostering emotional connections with customers, creating value exchanges, and adopting AI-leveraged omnichannel personalisation.
“In the current economic landscape, Australians are reassessing their brand loyalties, driven not only by cost considerations but also by a desire for convenience and personalised experiences,” says SAP Emarsys APJ RVP of Revenue Silvana Tagand.
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