Over two thirds (69 per cent) of UK 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 which reveals best practices for CP brands looking to build direct engagement with their audience. It is supported by a survey of 2,000 UK consumers, providing valuable insight into CP and DTC (direct-to-consumer) brands.
The research finds that consumer products 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 personalisation. 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 (19 per cent) now buy via a monthly subscription service. Loyalty programmes are also growing more important, with 41 per cent of CP shoppers having joined a new loyalty scheme in 2024.
To grow this type of repeat engagement, SAP Emarsys’ urges consumer product brands to focus on creating an emotional connection with customers. This is where a value exchange is essential to a personalised customer experience as part of an AI-leveraged omnichannel strategy. The SAP Emarsys platform empowers brands to deliver seamless experiences across all channels, simplifiying 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.
Sara Richter, CMO at SAP Emarsys explains, “Consumers are shifting their brand loyalties. 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.”
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 was able to perfect its product launch campaigns. John Frieda saw a 4.2x conversion rate (CVR) compared to their average CVR and was able to reach 4x their average number of contacts. This success allowed to retain but also expand its devoted customer base and consequently reinforce its position as a beloved brand.”
Lyla Holt, global digital marketing manager, Consumer Care, John Frieda, commented, “Over 88 per cent of users who purchased an ULTRAfiller+ product purchased 2 or more products within the line. 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.”
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