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Brand loyalty fades,
Shoppers seek personal touch,
AI leads the way.
Brand loyalty wanes as Australian shoppers seek flexibility and personalisation: SAP Emarsys
New research from SAP Emarsys reveals a significant shift in Australian consumer behaviour, with 62% of shoppers reportedly no longer loyal to consumer-packaged goods (CPG) brands.
The study, based on a survey of 2,000 Australian shoppers, highlights the challenges CPG brands face, including supply chain disruption, market saturation, and difficulties in collecting and integrating first-party data.
In a landscape where 31% of CPG shoppers have joined a new loyalty scheme this year, SAP Emarsys encourages brands to foster emotional connections with customers, create value exchanges, and adopt AI omnichannel personalisation to drive repeat engagement.
One company that has seen success in this area is Krispy Kreme. After partnering with SAP Emarsys, the doughnut giant reported a 19% increase in e-commerce orders.
RVP of Revenue for APJ at SAP Emarsys, Silvana Tagand, said: "In the current economic landscape, Australians 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. 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."
E-commerce and Digital Solutions Manager at Krispy Kreme, Carolina Figueiredo, said: "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."
The research also revealed that 14% of shoppers who describe themselves as ‘loyal’ to a CPG brand now buy via a monthly subscription service, further highlighting the shift in traditional brand loyalties due to consumer preferences for flexibility and convenience.
SAP Emarsys' platform helps brands create seamless, AI-leveraged personalised experiences across all channels. To further illustrate the success of this approach, SAP Emarsys is offering a webinar featuring Krispy Kreme’s success story.