New SAP Emarsys research reveals that 60% of surveyed Australians have switched to own-label alternatives because they are more affordable.
The research identifies that 55% of respondents think the quality of own-label alternatives is comparable to branded ones as well.
Today, 58% of those surveyed don’t pay attention to brands they’re buying as long as the product meet their needs.
In its ‘The Global Consumer Products Engagement Report: Australia Edition’, SAP Emarsys introduces the customer engagement maturity (CEM) score, ranking consumer product brands on their customer engagement strategies:
- Reactive: Still stuck in batch-and-blast marketing, sending the same message to everyone.
- Proactive: Using mobile and messaging but still relying on manual processes.
- Predictive: Leveraging AI to anticipate needs, deliver real-time, personalised offers, and build long-term relationships.
“The new research builds on Bain & Company’s findings, which highlight a major industry shift toward enterprise resource planning (ERP) and SAP S/4HANA,” says SAP Emarsys.
“This shift underscores the need for consumer product brands to break down silos, accelerate operations and engage customers more meaningfully.”
To thrive in the ‘engagement era,’ as defined by SAP Emarsys, brands must establish a robust data foundation across their entire business.
“Embracing AI-driven, omnichannel strategies is crucial, as it transforms fragmented data into actionable insights, building long-term relationships and achieving ‘true’ customer loyalty and lifetime value,” says SAP Emarsys.
Forming an elite group of leaders, just 15% of surveyed brands excel in the new engagement-driven landscape while the remaining are falling behind, according to SAP Emarsys. This engagement era success is said to depend on a personalised omnichannel approach across the entire customer lifecycle.
SAP Emarsys cites Krispy Kreme as a leading example. Using AI across its omnichannel operations, the brand is claimed to have witnessed a 53% boost in leads and significantly improved engagement across channels.
“It is really important that we provide a unified experience,” says Krispy Kreme E-commerce and Digital Solutions Manager Carolina Figueiredo. “So having digital partners that really allow that seamless integration is essential.”