In a stunning wake-up call for consumer product brands, new research reveals that 58% of Australians don’t care about brand names when buying goods, as long as the product gets the job done.
With cost-of-living pressures pushing 60% of shoppers toward cheaper own-label alternatives, brands are scrambling to stay relevant. But a select few are thriving, turning consumer apathy into a competitive edge. A groundbreaking report from SAP Emarsys, in collaboration with Deloitte, unveils how 15% of marketers are cracking the code in the “Engagement Era” by leveraging AI and real-time strategies to build true customer loyalty. Here’s how they’re doing it.
Brands take a backseat
The Consumer Products Engagement: Australia report, surveyed over 2,000 Australian consumers and 100 senior marketers, exposing a seismic shift in shopping habits. With 55% of Aussies believing own-label products match branded ones in quality, loyalty to big names is eroding fast. Sara Richter, CMO at SAP Emarsys, doesn’t mince words: “Aussie consumers aren’t just becoming less loyal to brands – they’re ignoring them entirely. That’s a wake-up call for marketers. Without a strong data foundation, it’s impossible to deliver the real-time, personalised experiences needed to achieve that all-important ‘true’ loyalty.”
The report introduces the Customer Engagement Maturity (CEM) Index, ranking brands on their ability to connect with customers. Only 15% of brands rank as “Predictive,” using AI-driven, omnichannel strategies to engage consumers across their lifecycle. The rest? They’re stuck in outdated “Reactive” or “Proactive” modes, struggling to keep up.
The elite 15% are setting the pace by engaging customers in the moment. Brands like Krispy Kreme and Ferrara are leading the charge, using SAP Emarsys’ platform to deliver seamless experiences. Krispy Kreme, for example, boosted leads by 53% through omnichannel integration. Carolina Figueiredo, E-commerce and Digital Solutions Manager at Krispy Kreme, explains their success: “It is really important that we provide a unified experience. So having digital partners that really allow that seamless integration is essential.” Their recent Hershey’s collaboration, blending iconic chocolate with doughnuts, keeps fans hooked, proving that fresh, engaging offerings can combat apathy.
Yet, while 49% of consumer product brands claim they can engage in real time, only 30% actually do. The gap highlights a critical opportunity for brands to invest in technology that delivers instant, personalized interactions.
Predicting consumer needs with AI
To stay ahead, brands must anticipate what customers want before they know it themselves. The report finds 84% of marketers believe they can predict consumer behavior, but only 16% are putting it into practice. Predictive brands use AI to analyze data across silos, turning insights into tailored offers that build long-term relationships. Richter emphasizes the stakes: “Without a strong data foundation, it’s impossible to deliver the real-time, personalised experiences needed to achieve that all-important ‘true’ loyalty.” By integrating customer engagement data with ERP systems, something only 33% of marketers currently do, brands can unlock predictive power and stay one step ahead of consumer needs.
With 79% of marketers admitting they need to revamp engagement strategies in 2025, the urgency is clear. But only 26% feel confident in their ability to personalize marketing effectively. The CEM Index shows that “Reactive” brands, stuck in mass-marketing mode, risk falling further behind. “Proactive” brands, using mobile and messaging but relying on manual processes, are a step ahead but still lack the agility of “Predictive” leaders. Figueiredo’s Krispy Kreme exemplifies the latter, leveraging digital partners to ensure “a unified experience” that resonates across channels.
The message is stark: brands that cling to outdated strategies will lose ground in the Engagement Era. Investing in AI-driven, real-time engagement isn’t just a nice-to-have it’s a must. As Richter notes, “Krispy Kreme is an outstanding example of a brand hitting their business goals while winning the hearts and minds of customers by making every interaction count.” With consumer apathy on the rise and own-label alternatives gaining traction, brands must act fast to build robust data foundations, embrace omnichannel strategies, and deliver the personalized experiences that turn casual buyers into loyal advocates.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
