McKinsey's Consumer Pulse Report of May 2022 reveals
a steep rise in the number of US consumers switching brands or switching retailers this year.
How can CPG brands address the loyalty shake-up
and protect their share of online sales?
McKinsey’s report reveals that US Consumers who shopped for a different brand in 2022 rose by a shocking 13 percentage points. The percentage of consumers who shopped with a different retailer also rose by 9 percentage points. Surprisingly, 90% of those consumers who have switched brands or retailers this year say they will continue to do so.
So what’s causing the shopper behavior trend in 2022?
Value, innovation and ethics
While availability problems during the pandemic fuelled a trend of brand-switching during 2020 and 2021, report authors at McKinsey have found that today’s consumers choose brands based on either their value (more than one third said they had purchased private labels) or for their novelty factor. Consumers want to experience something different and new. Brands should focus on innovation to fight brand fatigue and McKinsey suggests that brands that can deliver innovation at a good price will do well.
Brands also can’t ignore the rising trend McKinsey reveals of (primarily Millennials and Gen Z) shoppers increasingly making conscientious choices when shopping. Today’s shoppers want to purchase from companies that demonstrate inclusivity or place people before profits, and from brands that care about the environment or use natural ingredients.
Three digital shelf strategies for brands facing loyalty challenges
- Be consistent
With a further 9% of US shoppers switching retailers this year, you can’t afford to have all of your eggs in the same basket. Consistency in content execution will help shoppers find and recognize your brand wherever they shop. - Consider values when creating product landing pages
If your product is eco-friendly, GMO-free, cruelty-free or vegan, say so. And make sure it is included in your keyword strategy. - Win on Search in each of your key accounts
The rise of private labels is making search increasingly difficult as retailers offer preferential ranking to their own products. More than ever, it’s important to have tailored search strategies that are designed with the idiosyncrasies of each e-store’s algorithm in mind. In some cases, be prepared to "pay to play"
If you’d like to share your thoughts or challenges on building brand loyalty among US digital shoppers, please get in touch with me. I’d be happy to talk
in more detail about any of these strategies or hear some of your own.
- Measuring the effectiveness of your search strategy and helping you improve
- Managing compliance across multiple retailers when it comes to content execution and price
- Monitoring the competitive moves of every product in your category
