More than half of U.S. shoppers (57%) no longer consider themselves loyal to any particular consumer product (CP) brands, including food, beverages, and personal care items. According to SAP Emarsys, this shift highlights a challenge for brands in an era where convenience and personalisation take precedence over traditional brand allegiance.
The findings show that cost remains crucial, but customer expectations are evolving. Today’s shoppers prioritise seamless experiences and personalized engagement.
“While cost continues to be important, increasing value is placed on convenience and personalised experiences. The right approach to omnichannel engagement will not only help brands adapt to changing economic conditions, but will also empower them to build meaningful, enduring relationships with their customers,” said Sara Richter, chief marketing officer at SAP Emarsys.
The challenges
CP brands face many obstacles, including supply chain disruptions, an oversaturated market, and increasing difficulty collecting and integrating first-party data for effective marketing. However, brands that embrace AI-driven personalisation can improve retention and re-engage consumers who might otherwise switch brands based on price or curiosity.
Subscriptions & loyalty programs
Direct-to-consumer subscriptions are emerging as a key strategy for maintaining customer engagement. Among shoppers who still identify as brand-loyal, 20% subscribe to a monthly service.
In addition, 29% of CP shoppers joined a new loyalty program in 2024, emphasising the growing importance of rewards and personalised experiences.
The key to loyalty
To retain customers in today’s competitive landscape, brands must create emotional connections through tailored experiences. AI-powered omnichannel strategies make it easier for brands to maintain engagement across platforms, streamlining the customer journey. This is critical, considering it costs brands five times more to acquire a new customer than to retain an existing one.