The relationships between brands and retailers are on the cusp of a fundamental and needed shift. There’s always been a strict reliance on these two disconnected entities to provide consumers with necessary goods and services, leaving shoppers wholly dependent on specific shops to secure needed items. We saw the detriment this caused throughout the pandemic, with many items vanishing from shelves across the country.
Additionally, with the advent of the internet and mobile commerce, transaction fluidity increased so much that the notion of ‘retailer and brand loyalty’ has become more transient than ever before. When this is paired with shoppers’ inability to secure needed or desired items, it only worsens. Interestingly, a report from McKinseyOpens a new window found 75% of American shoppers changed their brand preference based on the ongoing instability in the world. It’s no secret that winning and retaining consumers is becoming increasingly challenging for brands. However, there are new opportunities emerging that can rekindle loyalty and even form unseen relationships with consumers. These opportunities are more timely than ever, particularly as we enter our third year of COVID-19 and journey through a critical period of global supply chain issues.
See More: Why Immersive Commerce Is the Next Standard in Customer Experience
Here’s a look at key considerations brands and marketers need to keep in mind as we move through this year.
Digital Transformation Leads to Retailer Agnostic ApproachesÂ
The pandemic forced a mass digital transformation for many brands across industries. The ongoing supply chain issues prove another wave of forced evolution, particularly as brands struggle to deliver desired goods via traditional sales channels.
This reality puts new pressure on brands to identify strategies that maintain consumer attention and create fresh tactics for providing various goods or services to them. We’re seeing marketers double-down on digital marketing campaigns that showcase the effort brands are putting in to provide new inventory to consumers. For example, Kellogg’s spoke about the lengths they underwent to evolve their supply chain and resource partners when faced with a massive surge in demand amid the pandemic. Not only did they mention the innovations made around automation, but also how their staff pulled together to ensure consumer demands were met as quickly and seamlessly as possible.Â
 A new industry perspective is coming to the surface that brands need to take a more retailer agnostic approach. I’m not saying brands should discredit and avoid optimizing retailer partnerships or agreements, but they should look at the state of consumerism through the lens of modernity. Consumers have been conditioned to expect streamlined and frictionless engagements across most aspects of life, especially when shopping. With this in mind, brands and brand marketers must shift their digital marketing efforts to simplify engagements further.Â
For example, many CPG and food brands promote recipes online, offering inspiring ways to use their products. These recipes can be commercialized through shoppable media, with brands providing a seamless path for people to add all the recipe items directly to a shopping cart. Given our lingering supply chain issues for various products, the brand can help consumers find the nearest location to purchase the needed items or offer guidance on the next best substitute from their product catalog.
Strategies like this help display how brands can take an active role in helping customers when they’re looking to complete shopping efficiently.Â
There are also more ways to provide benefits to consumers while helping instill recurring brand touchpoints.Â
See More: 4 Tips To Solve Your Shopping Portal’s Out-of-Stock Struggles
Living in a Subscription Service WorldÂ
One thing that’s become apparent is the widespread adoption and consumer appreciation for subscription-based offerings. A recent reportOpens a new window from eMarketer found that subscription ecommerce grew by 41% through 2020 and that 3% of U.S. retail ecommerce sales will come from subscriptions in 2021, equating to $27.67 billion — up more than $10 billion from two years ago. Despite much of the world’s return to normalcy, it’s forecasted that the increase in usage, and overall reliance, on subscription services will remain, especially as we grapple with new COVID-19 variants and the looming shadow of city or town shutdowns.Â
Brand marketers should take advantage of this and realize that the subscription business model dovetails naturally with their core functionality. It also provides value that the traditional supply chain cannot. Subscriptions provide a direct relationship with consumers, generate valuable first-party data, support brand loyalty, improve demand forecasting, and offer opportunities for cross-selling other products in the CPG’s portfolio. It’s why PepsiCo launched PantryShop.com and Snacks.com, and Heinz UK launched ‘Heinz to Home’ in 2020 and why P&G announcedOpens a new window it would grow its DTC presence after its ecommerce sales jumped 50% in Q3 2020.
The reverberating trend here is the need for brands and brand marketers to implement a strategy that facilitates a continued and frictionless path-to-purchase for consumers. In doing this, brands will bolster newfound loyalty and engagement in desired audiences.Â
What strategies do you have in place to bolster consumer loyalty in the wake of global supply chain issues? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .