Shopper selectivity in CPG branding and loyalty

Understanding the factors influencing shopper selectivity helps prioritize on-pack communication and build brand loyalty.

Shopper selectivity refers to how discriminating consumers are in their purchase decisions and brand choices. It is a mental filtering process by which people’s attitudes and beliefs organize and select information that fits their preconceptions. Through this subconscious process, the human brain attempts to make sense of a complex environment, like a grocery store.

As brand builders/evolvers in the CPG food space, we get more granular and focus on the degree to which shoppers carefully evaluate and compare different options before purchasing.

These consumer insights can help overcome potential barriers to purchase. Even better, there is a world in which you can inspire shoppers to switch to your brand!

The following factors all influence selectivity, but not all are controllable by brand experience:

Brand Loyalty, Price Sensitivity, Quality Perception, Demographic Differences, Switching Behavior

Brand love = loyalty. In the CPG food world, brand loyalty is based on the category and is often flavor-driven. For example, we frequently see brand preference in snacking due to trust and indulgence, also tied to reward-driven eating. Conversely, commodities in produce or dairy are more susceptible to unpredictable loyalty if better prices or special offers arise. Brand loyalty is the most critical factor in “weathering” the storm through shortages, inflation, and innovation. The more brand loyalty you can cultivate, the better. Many factors lead to loyalty, but authenticity, origin stories, connected brand experiences, messaging, and just plain good design can all drive brand loyalty.

Demographics matter. Frequent or budget-conscious consumers are capable of brand loyalty, but they are big believers in private label. For example, according to Mintel, 60% of younger consumers believe store brands offer similar quality. However, region or location can have an impact. Urban shoppers tend to lean more toward brand labels, whereas suburban or rural can switch back and forth. Knowing where your brand has the largest footprint can influence your messaging and ability to connect.

Switching behavior is the next best thing. While unpredictable, I see switching brands in shopper selectivity as an opportunity. Samples, focused design, new shopper segmentation—these are all opportunities to drive trial and “steal” some loyalty from competitors. Identify your CPG food brand and product’s point of differentiation to create a compelling, unique brand experience and empower the shopper to leap.

More shoppers are now aware of brands’ influence on them. This can be positive if you can genuinely empower them to choose your brand on their own.

Curious about brand loyalty in pet food packaging? Check out this article.

Source: Kantar Profiles/Mintel, March 2024