Five strategies to remain relevant to consumers
1. Find new ways to uncover hidden value
We know consumers are looking for value in a wide range of categories to get the products and services they want at the prices they can afford. Their decision hierarchy has changed, and they aren’t shopping by rote. Instead, they are looking in their peripheral vision at new options, including where they shop and what they buy. It is critical that brands tap into this new value paradigm and continue to evaluate ranges, pack sizing, bundling, and pricing. Immediate discounts and rewards, from free shipping to vouchers, are highly compelling. In fact, nearly three-quarters of consumers surveyed for the CommBank Consumer Insights Report5 said these incentives were purchasing triggers.
2. Elevate omni-channel engagement
Of consumers planning to engage in sales events, 38% said they’d shop equally online and in-store. Another 32% said they would take part mostly online. We know customers are often using a range of sources to undertake research before making a purchase, with search engines their first choice. The message here is clear: you need to be ready to engage with customers across a range of channels as they explore, research, and transact
3. Invest more, not less, in loyalty
It can be tempting for companies to be conservative and to pare back on programs that drive loyalty and underpin personalisation. However, the opposite is critical to building rapport and maximising both consideration and conversion. FCI 13 finds 35% of consumers globally are willing to pay extra for brands they trust — and this is up 10% from February 2022. Loyalty programs abound, but when done well, they provide a powerful competitive edge in difficult conditions. Consideration needs to be given to better use of data and exploring a wider range of targeted and unique reward types, from time-sensitive incentives to exclusive online events, early product releases to personalised experiences.
4. Embrace emerging technology
We are seeing brands6 use generative AI (GenAI) to streamline CX and underpin content creation to deepen engagement. Some global brands are employing GenAI to create and refine new product formulations; others are integrating it into consumer campaigns.
5. Use data to target a profitability uplift
In a time of consumer constraint, there is a need to protect margins and drive efficiency across a portfolio. The opportunity for brands lies in optimising trade promotions, maintaining a clinical focus on the end consumer pricing strategy and taking a hard-nosed review of the portfolio.
