Driving Brand Loyalty Amid Supply Chain and Price Pressures

Brand loyalty can be a fickle thing, especially when consumers feel the pressure of high prices and the frustration of out-of-stocks. When shopping online, these issues can come across as even more impersonal, further hindering brand loyalty.

For example, after a long workday, there are perhaps fewer things more frustrating for a busy parent than an email notification that the milk is out-of-stock on their online order and can’t be replaced.

This is to say, digital engagement can have a huge impact on brand loyalty, and there are key digital tactics that brands and retailers can implement to strengthen loyalty during tough times.

Macroeconomic Pressures Cut Loyalty by Half

A McKinsey consumer survey found that roughly half the respondents will switch a brand or retailer when facing product shortages, while an 84.51 consumer survey reported half the respondents will brand-switch to find a lower-priced product.

Both data points show that consumers are quick to switch when things aren’t going well. Making matters worse for CPGs, inflation continues to drive up food prices, allowing challenger and private brands to squeeze in on national brand loyalty.

For brands to weather the storm they must enhance their digital content.

Digital Strategies That Feel Personal

If there’s one thing national brands can control, it’s how they market and communicate to consumers. Digital content can speak directly to loyal shoppers and what they’re going through. Here are three ways to drive loyalty through digital connection:

1. Play the long game with campaigns and be visible. Brands that develop digital ad campaigns that run for a longer length of time are proven to increase sales and build a long tail of loyalty. These campaigns work to get noticed, and it sounds simple, but brands need to get ads and shoppable content in front of consumers on apps they like and where they shop. Consumers are seeking value in a variety of ways. Brands that help shoppers find what they’re looking for will grow loyalty.
2. Personalize content to grow consumer confidence. In the scenario of the parent completing an online order only to have the milk canceled, personalization can go a long way to make that shopper feel recognized. Messaging can directly speak to what occurred. In a happier scenario, personalized content can also increase engagement with ads that speak to their shopping history, their household, or the weather outside. What’s more, personalization can be about delivering shoppable content to a consumer via the apps they like and knowing when they like to engage. Personalization is more than knowing who a shopper is; it’s knowing where and when they want to shop. Personalization accounts for what they’ve purchased before and what they intend to buy in the future.
3. Reduce click friction. For retailers, shoppers that have a hard time finding products that meet their lifestyles as well as have a hard time adding them to a digital cart will switch stores. An easier online shopping experience will have consumers coming back, even if there are out-of-stock issues. Also, brands can help by delivering one-click conversions that make it very easy to shop online. Eliminating steps to get products into digital carts is half the battle and brands can leverage digital tactics to reduce the friction.

Building Back Loyalty

As retailers and brands continue to optimize supply chains to ensure products are stocked and prices are managed, they can also leverage digital tools to maintain a solid, meaningful relationship with shoppers. While uncertainty is inevitable in the short term, brands and retailers can use digital tactics to provide a reliable experience and deliver valuable content.

Matt Kates is senior vice president of marketing at AdAdapted, a leading advertising technology solution that increases the purchase intent of shoppers and gets brands onto shopping lists and into carts.