More than half (57%) of United States shoppers do not consider themselves loyal to brands producing consumer products (CP), including food, soft drinks, health products and other daily goods. That’s according to new data released from SAP Emarsys ahead of its upcoming CP guide launching in April.
The research, which surveyed 4,000 U.S. consumers, reveals best practices for CP brands looking to build direct engagement with their audiences.
“Consumers are shifting their brand loyalties,” said Sara Richter, Chief Marketing Officer at SAP Emarsys. “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.”
According to the SAP Emarsys research, CP brands 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.
However, the report reveals a silver lining for CP brands, which suggests that brands can now more easily retain customers who might otherwise be tempted to switch due to convenience, price or curiosity for something new through AI-driven personalization.
John Frieda, a global leader in the haircare industry, exemplifies the art of creating impactful customer connections through highly targeted, data-driven omnichannel marketing strategies.
By leveraging SAP Emarsys’ Customer Engagement solutions, John Frieda perfected its product launch campaigns. John Frieda saw a 4.2x conversion rate (CVR) compared to its average CVR and reached 4x its average number of contacts. This success allowed John Freida to not only retain but expand its devoted customer base and consequently reinforce its position as a beloved brand.
“Over 88% of users who purchased an ULTRAfiller+ product purchased two or more products within the line,” said Lyla Holt, Global Digital Marketing Manager, Consumer Care at John Frieda. “This launch not only had a huge impact on the success of the ULTRAfiller+ but also shaped how we go to market with NPD (New Product Development) in the future.”
Direct-to-consumer subscriptions are also becoming a key driver for loyalty. Of those shoppers who describe themselves as ‘loyal’ to a CP brand, one in five (20%) now buy via a monthly subscription service. Loyalty programs are also growing more important, with 29% of CP shoppers having joined a new loyalty scheme in 2024.
To grow this type of repeat engagement, SAP Emarsys urges CP brands to focus on creating an emotional connection with customers. This is where a value exchange is key to a personalized customer experience as part of an AI-leveraged omnichannel strategy.
The SAP Emarsys platform empowers brands to deliver seamless experiences across all channels, simplifying the customer journey and helping consumers stay connected to their preferred brands. This is a must-have given it costs brands five times more* to acquire a new customer than to retain an existing one. By making it easier for customers to stay loyal, brands can increase both lifetime value and profit.
To learn more about how brands like John Freida are approaching customer loyalty, dive into SAP Emarsys’ latest Customer Loyalty Index.
