Current State of Customer Loyalty With CPG Brands

  • How are different consumers reacting to available loyalty programs?
  • How does advertising impact loyalty, and how should marketing fit into a brand’s overall loyalty strategy?
  • What kinds of loyalty and rewards programs most entice consumers?

Key Findings:

  • Private label product loyalty is not far behind national brand loyalty. If a branded player loses a shopper to a private label, our data shows they may never get them back as private label loyalty is neck and neck with branded items.
  • Product and retailer loyalty varies across CPG categories. Pet products and retailers have the strongest loyalty, while baby item shoppers are the most product and retailer fluid based on convenience during a time precious life-stage.
  • Future consideration for loyalty programs is strongest among ages 18–34. Drivers to sign up vary based on the type of loyalty program. Loyalty program involvement is linked to stronger product loyalty.
  • Online shoppers for food and household skew significantly younger. Consumers ages 18–34 like personalized ads, while those 55+ like to see availability.
  • Overall, consumers love CPG ads that make them aware of new products or products they haven’t tried.

How Loyalty Varies Across Products, Manufacturers and Retailers

Interestingly, consumers are most loyal to brands and retailers when it comes to pet care products, while they’re least loyal when it comes to baby items. As Jeff Williams, Vertical Strategy Lead for CPG and Pharma, has quipped, “Americans are more loyal to their fur babies than they are to their actual babies.”

How CPG Loyalty Programs Can Impact The Bottom Line

Historically, the brand experience that CPG companies provide has hindered their ability to offer loyalty programs direct to consumers. After all, outside of direct-to-consumer (DTC) businesses, most CPG brands are reliant on retailers for their sales.

CPG Advertising Best Practices

What can CPG brands do to get the word out about their loyalty programs and other offerings? As past InMobi research has shown, mobile advertising is especially effective.

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Matthew Kaplan is the Content Marketing Manager at InMobi (www.inmobi.com)