Excerpt from Retail Today: The State of the Grocery Industry 2023
After a few tumultuous years, retail’s rough ride is far from over. Inflation continues to impact consumer loyalty and buying behavior, and customer engagement and retention are a top priority for CPG brands in 2023.
As John Furner, president and CEO, Walmart U.S., said in a keynote at NRF 2023: Retail’s Big Show, “Loyalty in retail is the absence of something better.” The challenge for retailers is to be the best choice for its customers and to deliver personalized, unique value every time a shopper interacts with their brand. As retailers set their ad strategies for 2023, there are three key trends that can help ensure success: creating personalized shopping experiences, delivering compelling video content and aiming for omnichannel excellence.
Create a Personalized Shopping Experience
Consumers now expect a more personal and customized shopping experience, with nearly half (49%) of consumers stating they will likely become repeat buyers after a personalized shopping experience. Brands that prioritize delivering personalized and relevant ads to their shoppers can align consumer preferences with promotions and targeted advertisements. Doing so provides a personalized experience using AI and customer targeting based on previous and current shopping list data. This type of relevant, contextual advertising helps build customer loyalty and increase sales.
For example, consider a shopper that regularly uses a mobile app to build a grocery list that includes ingredients for pasta recipes. This creates a great opportunity for a pasta brand to advertise its most relevant product to the shopper while using the app — meeting its customers where they are and providing direct value. In 2023, the CPGs that offer the most innovative and individualized personalization strategies will be the ones that stand out.