5 Challenges for CPG Brands and Customer Loyalty
Every business wants to crack the code on customer loyalty.
Maintaining a loyal customer base is difficult across industries, but especially when it comes to consumer packaged goods (CPG) brands. These brands face several pain points when it comes to loyalty. Here are 5 of the most common ones:
1. Limited direct customer interaction:
Unlike retailers, CPG brands often have limited direct interaction with end consumers. This lack of direct communication can make it challenging to gather customer feedback, understand preferences, and build strong relationships.
2. Brand switching:
Consumers today have access to a wide range of options and are increasingly open to trying new brands. This makes it challenging for CPG brands to retain consumers and build long-term loyalty.
3. Lack of differentiation:
Many CPG categories are saturated with numerous brands offering similar products. Brands struggle to differentiate themselves from competitors, leading to a perception of homogeneity among consumers and making it difficult to build strong loyalty.
4. Changing consumer preferences:
Consumer preferences and trends evolve rapidly, and brands need to keep up. Failure to adapt to changing consumer needs, such as demands for sustainability, ethical practices, or healthier options, can lead to decreased customer loyalty.
5. Ineffective marketing strategies:
Brands may struggle with ineffective marketing efforts, including misaligned messaging, lack of personalization, or inadequate engagement with consumers. These issues can hinder the development of a loyal consumer base.
Building a loyal consumer base requires brands to consistently deliver value, exceed customer expectations, and cultivate meaningful connections with their audience.
But how can CPG brands deliver affordable prices in a way that encourages brand loyalty?
One answer to this question is the mobile wallet channel.
Mobile wallets bridge the gap between real world engagement and in-store commerce. Mobile wallets like Apple Wallet and Google Wallet come pre-installed on almost every smartphone. Dynamic pass updates and location- and time-based notifications facilitate an omnichannel consumer journey from consideration to conversion.
For brand marketers, the mobile wallet is an ideal channel to reach consumers on mobile, while adding convenience and value. CPG brands can now offer personalized mobile promotions that drive loyalty through a channel that’s native to today’s mobile-first shopper.
With added benefits like increased convenience, engagement, security, and relevant deals that drive retention and loyalty, it is no surprise that mobile wallets are capable of driving customer lifetime value for CPG brands.
ZenAgain is your one-stop shop for designing, distributing, updating, measuring, and optimizing your mobile promotions and loyalty rewards. Work with us to develop the most effective methods of reaching and engaging your best customers on mobile in order to drive in-store commerce.
