The on-stage session "Building Loyalty in an Era of Fickle Shoppers and Unified Commerce" at Groceryshop 2024, featured Ram Krishnan, CEO of PepsiCo North America Beverages, and Joe Laszlo, Head of Content for U.S. Groceryshop.
They discussed key trends shaping consumer behavior and retail strategies, focusing on how retailers and brands must adapt to maintain loyalty in an increasingly fragmented market.
Key Themes and Takeaways
Personalized Value
- Krishnan emphasized the growing importance of personalized experiences in modern commerce. He explained that consumers now expect brands and retailers to recognize them individually and tailor their shopping experiences accordingly. Krishnan remarked, “The consumer's expectation is every time I interact with the retailer or brand, you know me and you know me well.”
- This shift has moved beyond traditional personalization, incorporating personalized value—offering products and pricing tailored to the shopper’s unique needs and context. Krishnan discussed how this understanding drives brand loyalty and consumer lift, particularly in a landscape of rising prices and inflation.
Joy and Wellness:
- Another emerging trend is consumers' focus on joy and wellness in product choices. Krishnan highlighted that Gen Z prioritizes mental and emotional well-being as much as physical health, seeking products that align with this holistic approach. Meanwhile, Baby Boomers are looking for ways to enhance their quality of life as they age. Krishnan said, "The Gen Z cohort is looking at mental and emotional well-being equally as important as physical well-being."
Unified Commerce and Omnichannel Shopping:
- The session delved into unified commerce, blending digital and physical shopping experiences. Krishnan explained that even when consumers shop in physical stores, their journey often begins online through digital touchpoints like mobile apps, which guide their purchasing decisions. He predicted that by 2026, 20% of grocery shopping will be digital, up from around 12% in 2024.
- The blurring of lines between digital and physical commerce is a permanent shift, requiring retailers to adapt to how consumers navigate both spaces seamlessly.
