Shifting Consumer Habits and Brand Engagement Strategies
Ask anyone how the economy is doing these days and you’re likely to get an eyeroll. Recent numbers point to a continued strong job market, and consumer sentiment is shifting toward a more positive outlook, but are consumer purchasing habits in alignment with government reports?
While inflation has fallen considerably, it’s not a straight line to the 2% the Federal Reserve is seeking. Consumers still feel pinched by prices that rose quickly during the pandemic but have been much slower to fall. Shoppers are taking action. A recent Kroger consumer survey found nearly 50% of U.S. shoppers prefer to buy store brands, compared to 37% who prefer national brands. Retailers have noticed too, placing in-house brands more prominently on store shelves. For example, Target just announced a new line of 400 staples, some priced under a dollar, to bring shoppers into the store and compete with more expensive national brands.
Adapting to New Consumer Expectations
This shift poses a challenge for brands looking to maintain and grow their customer base. Savvy brands understand that to keep shoppers onboard, they need to work a bit harder. This is a pivot from two to three years ago when high demand and supply chain logjams had brands and retailers struggling to just keep products on the shelf. Today, a solid, modernized strategy for promotional campaigns remains key to brand engagement in 2024. Brands must focus on creating lasting connections with their consumers by providing tailored experiences that resonate with their evolving needs.
For some industries, this may involve a fresh outlook on loyalty programs. Points and members-only deals aren’t just for airlines anymore. Loyalty programs help brands gain better insights into their customers, offering more customized experiences that shoppers have come to expect. From free birthday gifts and tiered rewards to friends and family discounts, loyalty programs not only tie shoppers to specific brands, but also encourage them to spend more, further strengthening brand engagement.
Promotions as a Key to Staying Competitive
Food and beverage brands are particularly affected by inflation fatigue. These brands face pressure from shoppers jumping to cheaper store brands, and they may be losing market share to new products. As states continue to legalize cannabis, the adult beverage industry is seeing an influx of CBD and THC products hitting the shelves, just as movements like Dry January grow and alcohol consumption declines among younger generations. Rebates and coupons are especially important in these industries to gain new customers and keep existing ones.
When price is a consideration between two brands, rebates or coupons might make the difference or entice a shopper to try something new. For current customers, these offers might give them another reason to stick with their brand.
Creating a Successful Strategy for 2024 and Beyond
How you craft and implement your promotions strategy is key to success. Are you leveraging the latest technology to ensure not only value but also a positive experience for customers? Do you require customization? A white-glove experience for loyalty program members? Are there legal considerations specific to your industry, and how will they be met? And for any brand, are you compliant with all rules and regulations in every region where your campaign takes place?
A well-planned promotions strategy will help customers find your brand and provide reasons for them to become or remain loyal. As shoppers keep an eye on their wallets, no brand can afford to ignore modern approaches to brand engagement.
Ready to elevate your brand engagement strategy in 2024?
Contact us today to explore how tailored promotional campaigns can boost loyalty, drive sales, and create meaningful connections with your customers. Let’s work together to make this year your brand’s best yet!
