Three Keys Consumer Packaged Goods Brands Need To Consider For Inflation-Era Shopper Marketing

A version of this post was originally published on Forbes.com.

In 2024, inflation is still very much top of mind when it comes to the American consumer's approach to shopping. With pandemic-influenced lifestyle changes still in the mix, there has been an overall sea change in the average person’s buying behavior. What’s taking precedence in the retail aisles? Are consumer packaged goods (CPG) brand marketing strategies keeping pace with today’s consumer priorities?

Three key things CPG brands need to consider include:

1. Physical retail is roaring back, and consumers are open to new product discoveries.

With almost three years of the pandemic in the rearview mirror, many consumers are enthusiastically returning to shopping in-store: 60% reported they shop in brick-and-mortar stores more than they did compared to the same time last year, and—particularly relevant to brands—they’re looking for new finds while they’re out. Physical retail creates the perfect environment for consumers to use all of their senses to experience shopping, producing impulse-buying triggers that can translate into unplanned purchases. Survey findings bear this out, as the majority of shopper respondents said they discover new products as they traverse the aisles, to a far greater extent than while shopping online.

2. Consumers are keeping a disciplined eye on their wallets.

Shoppers are deal hunting and comparison shopping with a vengeance, as many budgets can’t keep pace with rising inflation. With an eye toward saving money, consumers are becoming much more selective about where they’re directing their expenses. Over half of consumers surveyed by our company indicated that they now adhere to a shopping budget more than in the past, with an even higher percentage prioritizing food and grocery items as they choose to limit eating out. And with grocery prices rising compared to the same time last year, 73% of consumers said they are turning to every savings tool possible—including retailer circulars, third-party digital apps and websites—to avoid sticker shock at checkout. Some are even choosing to switch from their favorite stores altogether, toward discount retailers.

3. Consumers are asking 'What have you done for me lately?'

Brand loyalty is a toss-up in this environment. Over half of those surveyed said they would choose a competitor when faced with an out-of-stock item from their favorite brand. The other half, however, expressed they would either buy a similar item from the same brand or wait until the product they like is available. So what serves as the great differentiator? More than ever, it’s coming down to how well a brand demonstrates value to its customer base. CPG brands (and retailer private-label brands) need to address consumers’ changing definitions of value (which can include quality, social stance, specific product benefits or others) and engage with them everywhere by delivering relevant messaging, promotions and loyalty programs that extend beyond the point of purchase.

How To Woo Your Customers

For the new year ahead, CPG brands have a real opportunity to step up their game and connect with customers on their terms. The good news is that price-conscious consumers are open to being wooed, but brands will have to make themselves attractive, engaging and available for discovery. How can they do this?

• Innovative strategies include leveraging the latest advancements in marketing technologies to connect with consumers inside and outside of the physical retail environment. Brand bets on retail media networks, digital out-of-home and advanced TV and shoppable content have all helped elevate shopper marketing by delivering targeted offers for in-store and online shoppers to win the price-comparison rumble.
• For some brands, loyalty programs can be drivers of deeper connection and engagement, offering the potential for hyper-personalized promotions and incentives.
• To stay top of mind (or get noticed in the first place) and drive engagement, consumer promotions like sweepstakes, rebates, gift-with-purchase, receipt-scan rewards and bank credit card-linked offers can all help brands create pathways to savings for eager consumers right now—when they matter the most.

For CPG brands, 2023 will be an uncertain year with inflation rising, continued layoffs and shoppers combining online and in-store channels to optimize deal-seeking and price comparisons on the path to purchase. Brands will need to leverage new shopper marketing strategies and technologies to get noticed, to stay top of mind, to drive engagement and loyalty, and to generate sales.

Keep Consumers Engaged to Stay Top of Mind

To stay top of mind with inflation conscious consumers, it's the right combination of engagment, promotions and loyalty strategies. To learn how Snipp, can help you, contact us here for a short consultation.

A version of this post was previously published on Forbes.com.