Australians shift loyalties in consumer-packaged goods brands
Many Australian shoppers (62%) are no longer constrained by brand loyalty when purchasing consumer-packaged goods (CPG) such as food brands, soft drinks and health products.
According to new research from SAP Emarsys, consumer product suppliers are also grappling with growing supply chain disruption, market saturation, and difficulty collecting and integrating first-party data.
This shift is reshaping the CPG industry, urging brands to innovate how they engage with consumers.
With comparison shopping on the rise, loyalty programmes are growing more important, with 31% of respondents joining a new loyalty scheme in 2024.
Direct-to-consumer subscriptions are also becoming a key driver for loyalty. Of those shoppers who describe themselves as loyal to a CPG brand, one in five (14%) now buy via a monthly subscription service.
The SAP Emarsys platform empowers brands to create AI-leveraged personalised experiences across all channels, making it simpler for consumers to remain connected to their preferred brands.
SAP Emarsys RVP of revenue for APJ Silvana Tagand said in the current economic landscape, shoppers are reassessing their brand loyalties, driven not only by cost considerations but also by a desire for convenience and personalised experiences.
“Krispy Kreme, a distinguished leader in the doughnut industry, exemplifies the art of cultivating genuine customer loyalty through AI-driven personalisation,” she said.
“By leveraging SAP Emarsys’ Customer Engagement solutions, Krispy Kreme has not only retained but expanded its devoted customer base, reinforcing its position as a beloved brand.”
Krispy Kreme e-commerce and digital solutions manager Carolina Figueiredo added: “Partnering with a sophisticated customer engagement platform like SAP Emarsys has been pivotal.
“It’s not just about maintaining loyalty; it’s about deepening those connections, which has led to a 19% increase in our e-commerce orders.”
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