62% of consumers make brand preferences permanent, and pricing affects brand loyalty

During the COVID-19 pandemic, low inventory levels , changing lifestyles, and evolving consumer purchasing behaviors have altered brand loyalty, causing shoppers to purchase new products and switch brand allegiances. According to Ketchum , 62% of people who changed their brand preferences will make that change permanent before the COVID-19 pandemic is over.

For example, if one brand of toilet paper is out of stock, consumers will likely be willing to try another brand, providing an opportunity to steal customers’ hearts and wallets for years to come. This provides a chance for private labels to elevate themselves and differentiate themselves from recognized national brands.

While consumer behavior continues to evolve, one thing remains constant: the importance of price. Given consumers’ price sensitivity, value remains the main reason why consumers try new brands and new places to shop. So, as brand loyalty shifts due to the COVID-19 pandemic , how can grocers use pricing to adapt to consumer preferences and capitalize on evolving trends?

Leverage real-time data analytics

First, grocers should determine the right price to protect profits while satisfying customer interests. As shoppers tend to add new products and brands to their assortment, it will become increasingly important to dynamically adjust prices as brand preferences evolve.

To respond to changing brand loyalties, grocers can collect advanced analytics and real-time data to modify pricing decisions based on changes in customer behavior and expectations.

Additionally, grocers can use this data to determine which products to index their own private label prices to, thereby creating a competitive strategic structure that will not cut into demand. Having this information to understand key shifts in brand loyalty will allow grocers to react quickly and respond to the latest customer brand preferences, driving sales and improving profits.

Develop a seamless omnichannel pricing strategy

The COVID-19 pandemic has spurred the use of e-commerce, whether through home delivery , curbside pickup, or in-store pickup. Grocery is one of the fastest-growing e-commerce sectors, leading to a permanent shift in consumer behavior as shoppers continue to choose online ordering for their grocery shopping needs.

However, building customer loyalty in an omnichannel world can be challenging, especially when preferences between online and in-store shopping change rapidly . Developing a strong omnichannel strategy is , in part, about being able to determine shopping behavior by channel, identify patterns, and account for changes in channel behavior.

Grocery stores should also refine their channel strategies to align with consumers’ omnichannel expectations. Otherwise, the disconnect between online prices and in-store promotions and sales could create a disjointed shopping experience for consumers, reducing shopper satisfaction and profitability.

Maximize promotional effectiveness to drive sales

As shoppers identify new products and brands to try, it is more important than ever for grocers to align their promotional calendars and strategies with shopper behavior. This can be achieved by finding ways to create innovative promotions for items that resonate with this evolving demand, which will engage consumers with their newfound preferences and boost sales.

Grocery stores can also run grocery store promotions based on brand preference . Traditional promotions that worked one or two years ago will no longer work this year. By identifying winners, eliminating underperformers, and identifying opportunities for brands to stand out, grocery stores can maximize the effectiveness of promotions.

Build loyalty with new buyers

In summary, the COVID-19 pandemic has changed shoppers’ purchasing habits and provided new opportunities for grocers to understand the shifts in brand loyalty. With the right analytics and strategies, grocers can identify and determine ways to meet customers’ changing needs and attract new customers, either through branded products or their own private labels. A strong pricing strategy that can shift brand loyalty will be key to building outstanding customer loyalty in a changing market environment.

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