New data suggests that 62% of Australian shoppers are not sticking to brand loyalty when choosing consumer-packaged goods (CPG).
Research by SAP Emarsys has found that food brands like soft drinks and other daily goods are no longer chosen by customers who are loyal to specific brands.
This marks a shift in consumer behavior, prompting brands to consider how they can retain brand loyalty and engage with customers based on their preferences.
Australian-based Ecommerce News reports that SAP Emarsys has released a new report aimed at helping businesses build direct customer engagement.
Consumers make choices on convenience and preferences for flexibility.
Prioritizing flexibility and convenience
According to SAP Emarsys, consumer products face plenty of obstacles. Consider the growing supply chain disruptions and market saturation.
These days, customers have more options, with more stores opening nearby. One way to remain connected with customers is using AI technology. This helps create a personalized experience, making it more straightforward for the consumer to buy from your brand than experimenting with others.
Loyalty problems taking the spotlight
Loyalty programs have become increasingly important lately. Data shows that 31% of CPG shoppers joined new loyalty schemes in 2024.
Researchers have also noticed an interesting trend: direct-to-consumer subscriptions. One in five loyal shoppers turns to monthly subscription services to save money.
Silvana Tagand, from SAP Emarsys, believes Australians are reassessing their brand loyalties. ā[This is] driven not only by cost considerations but also by a desire for convenience and personalized experiences.”
Brand loyalty compared to the COVID-19 period
Locate2u previously reported that customer loyalty was at its highest during the COVID-19 pandemic in 2020. However, due to economic changes, brand loyalty has shifted.
With tough economic times ahead, consumer confidence and brand loyalty dropped even further than in 2023.
Last year, customers reported these factors impacting brand loyalty: longevity, neutrality on political issues, building an iconic brand, and being a dominant market leader.
NOW READ: Building customer loyalty with ālifetime returnsā
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
