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LAS VEGAS – A new study from SAP Emarsys, conducted in collaboration with Deloitte, reveals a significant shift in consumer behavior: 54% of American shoppers no longer prioritize brand names when purchasing consumer goods. As inflation and economic pressures persist, more consumers opt for private-label products, with 57% making the switch for affordability and 55% believing these alternatives offer comparable quality to branded goods.
The Consumer Products Engagement report, unveiled at the Shoptalk conference, highlights the growing challenge brands face in retaining customer loyalty. The report introduces the Customer Engagement Maturity (CEM) score, ranking brands based on their ability to engage customers effectively. While 19% of consumer product marketers have embraced data-driven, personalized engagement strategies to thrive in the so-called ‘Engagement Era,’ most struggle to keep pace.
Despite widespread recognition of the need for more personalized marketing, execution remains challenging. Among surveyed brand marketers:
- 88% acknowledge the need for an engagement strategy overhaul in 2025.
- Only 32% believe their company can effectively personalize marketing efforts.
- Just 24% report actively implementing personalized strategies.
- 43% claim to have real-time engagement capabilities, but only 26% actually engage consumers in the moment.
- 35% state they can predict future consumer behavior, yet only 17% act on those insights.
Sara Richter, CMO of SAP Emarsys, warns that brands failing to adapt risk being ignored altogether. “US 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, personalized experiences needed to achieve that all-important ‘true’ loyalty. Molton Brown and Ferrera are outstanding examples of brands hitting their business goals while winning the hearts and minds of customers by making every interaction count.”
Brands excelling in the Engagement Era, such as Molton Brown and Ferrara, leverage AI-driven, omnichannel approaches to integrate customer engagement with business operations. However, only 35% of consumer product marketers integrate engagement data with financial and operational systems like Enterprise Resource Planning (ERP).
“At Molton Brown, our customers are our top priority, so the technology we use is critical to our success and operational efficiency,” Naresh Krishnamurthy, Senior Manager of Business Transformation at Molton Brown, explains. “Our collaboration with SAP Emarsys has been exceptional from the start. It has empowered us to transform customer engagement by delivering seamless experiences across both digital and traditional channels, keeping our customers at the center of our business.”
To thrive in this new landscape, brands must move beyond outdated batch-and-blast marketing methods and adopt AI-based predictive engagement strategies to anticipate needs and create real-time, personalized interactions.
The CEM Index categorizes brands into three levels:
- Reactive: Still stuck in batch-and-blast marketing, sending the same message to everyone.
- Proactive: Using mobile & messaging but still relying on manual processes.
- Predictive: Leveraging AI to anticipate needs, deliver real-time, personalized offers, and build long-term relationships.
