More than half (62%) of Australian shoppers no longer feel bounded by brand loyalty when it comes to consumer-packaged goods (CPG), including food brands, soft drinks, health products, and other daily goods, according to new research from SAP Emarsys.

Despite facing challenges such as supply chain disruptions and market saturation, there’s a silver lining for CPG brands. With the right tools, brands can more easily retain customers who might otherwise be tempted to switch due to convenience, price or curiosity for something new.

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.

According to the SAP Emarsys’ report, consumer products are also struggling with collecting and integrating the first-party data needed to target today’s consumers. With consumers increasingly shopping around, loyalty programs are growing more important, with almost one in three (31%) of CPG shoppers 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.

To drive this type of repeat engagement, SAP Emarsys urges consumer product brands to focus on fostering emotional connections with customers, creating value exchanges, and adopting AI-leveraged omnichannel personalisation.

SAP Emarsys regional vice president of revenue for Asia Pacific and Japan, 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 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.”

Krispy Kreme e-commerce and digital solutions manager, Carolina Figueiredo commented, “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.”