The last year has demonstrated to the consumer package goods industry that brand loyalty is fickle, as shoppers continue to navigate uncertain economic conditions. In fact, according to Insider Intelligence, 71% of consumers worldwide had switched brands at least once over 2021-2022. As a result, CPGs are toeing the line of keeping brand loyalists interested while also enticing those shoppers looking for price, level of quality, customer service, or convenience that matches their needs, whatever the brand.
How can CPG marketers help fight the switch and gain new consumers while they're at it? We have five tips to help your brand stay top of mind with shoppers as you navigate your 2023 strategy.
According to eMarketer, two-thirds of shoppers switching brands during 2021-22 were looking for better deals. CPG advertisers must recognize shoppers’ drive to seek out perceived value when making purchases. You must remain nimble, researching your competitors' offerings and reacting with your own value proposition.
If your brand can’t budge on pricing, you must underscore what makes your product worth it to the consumer. If your message resonates, you are closer to keeping your loyal customers. Still, if your higher costs seem indefensible to the shopper, you may see them abandoning your items for another brand.
Product innovation draws an audience to your new features and products and reinvigorates your original brand base. Dedicating efforts to product innovation and product marketing will keep your brand fresh in consumers' minds as you release periodic updates with your ideal consumers’ tastes in mind.
Innovation keeps your brand from stagnating and maintains customer interest, especially when their eyes begin to wander to the latest and greatest that your competitors may be trialing. Whether introducing new products to the market or finding new ways to highlight your existing brand, your innovations will be noticed, keeping your brand ahead of the pack as a CPG leader.
Provide Excellent Customer Service
The customer experience is crucial in building brand loyalty. Nearly 50% of consumers who switch brands say poor customer service will cause them to look for alternatives. As a CPG brand, ensure you are providing excellent customer service by answering questions, resolving issues, and providing a positive shopping experience where you can. Any glitch in responding to customer issues can result in a lost customer and, even worse, a public admonishment of your brand. By prioritizing customer service as a prime brand value, you will help create a strong relationship between your brand and your customers, which can help reduce brand switching.
Use Data-Driven Marketing Strategies
Modern brands must employ data-driven marketing strategies to understand customers' needs and preferences. Customer surveys, focus groups, or market research return valuable insights when employed with a timely and well-designed approach. A savvy brand will use this information to create tailored marketing campaigns that resonate with its target audience and, in turn, will help increase brand loyalty.
Get Your Brand on Shopper’s Lists
One surefire tactic that CPG brands use to supercharge customer loyalty is through engaging shopping list marketing. This advertising strategy uses proprietary technology to serve highly relevant ads to consumers using digital shopping lists. By reaching shoppers exactly when they show intent to buy, you exponentially increase the chances of getting your branded product into shoppers' e-carts, as 81% of list-builders buy everything on their lists.
The staying power of getting on shoppers' mobile lists is unmatched. Once your brand reaches digital lists, it becomes easier and faster to add your brand again and again to future purchases. AdAdapted, a leading ad tech solution for the CPG industry, partners with large and emerging brands to get their products on consumer lists. From awareness to loyalty, AdAdapted helps brand advertisers convert shoppers down the funnel, driving measurable results.
In summary, demonstrating product value, continuing to innovate, providing excellent customer service, using data-driven marketing strategies, and getting your brand onto shoppers’ lists can all work in tandem to fight brand switching and maintain your ideal consumers.
If you’re looking to employ shopping list marketing as a part of your 2023 marketing mix, reach out today to learn more from our experts!