marketing strategies to retain customers

CPG brands should use these 4 marketing strategies to retain customers

The average CPG brand counts on 0.7% of shoppers—the loyalists—to comprise 80% of their sales volume. A 5% increase in customer retention can increase company revenue by 25-95%. Brands can’t afford to throw away millions in revenue as their most loyal customers defect. Instead, they should be utilizing marketing strategies to retain customers.   

Retention Has Never Been More Crucial for CPG Brands

It’s a nerve-wracking time for CPG brands. Last year, private labels outpaced national CPG brand growth 3:1. By 2027, it’s estimated that retailer white-label brands will reach over 25% of market share. Upstarts and direct-to-consumer brands contribute to the growing threat against established household names—some of which have enjoyed recognition and favorable rapport for 50 years or more. Customer retention has never been more important. The question is: When faced with a plethora of choices, why will consumers choose you, and what will lead them to continue to choose you?

4 CPG Brand Marketing Strategies to Retain Customers

  1. Content Marketing with a Purpose: Research suggests 47% of shoppers will leave a brand that “lacks a purpose.” More than half of shoppers prefer to support brands that share their values and represent “a great culture.” Now is a good time to rethink your mission and philanthropic standpoint. You might consider charitable campaigns or partnerships, or reimagining your employee culture. Particularly for millennial shoppers, charitable giving, sustainability, and eco-friendly initiatives are important. They also care about employee welfare, human rights, and work/life balance, so corporate policies should reflect these ethics—which will also help you attract and retain top talent. Your website, social media pages, and marketing materials should communicate your values.
  2. Touchpoint Mobile Marketing: So much of what we purchase involves receiving the right message at the right time. For CPG brands, the emphasis should be on digital out-of-home engagement—whether it’s at the train station for a morning commute, in the coffee shop during an afternoon break, or at the grocery store after work. A recent survey found 1 in 3 shoppers were directly influenced to try new products when exposed to mobile ads. A whopping 91% of consumers surveyed say they prefer an “in-store experience” for CPG products. For example, you might consider partnering with the popular mobile shopping app Shopkick to connect with shoppers in-store. With Shopkick, you can guide shoppers to your product at shelf, play a branded video while your product is in their hands, and reward them for their engagement and future loyalty.
  3. try these marketing strategies to retain customersDigital Rewards Marketing: While it’s true that you can command higher prices if you’re a CPG with great brand affinity, shoppers still love a bargain. In the supermarket sphere, 95% of those surveyed said they want coupons, and 51% say they actually plan their shopping trips around advertised deals. Another report found 92% of shoppers use coupons, with 45% “always using them,” and 86% asserting that coupons can influence their purchasing decisions; three-quarters of those surveyed said they prefer digital coupons over paper coupons. Offering digital rewards makes it easier for shoppers to redeem these offers, as they need only bring their smartphones into the store for access. 
  4. Video Marketing: Video marketing shows no signs of slowing, with analysts predicting brands to spend over $100 billion a year on video content by 2023. This year, CPG brands spent 27% more on video marketing than they did in 2018. Videos are a versatile form of media that work well on websites and social media platforms, in email, and in third-party apps. It’s no surprise that so much is invested here, and the results speak for themselves: 95% of people have watched a video to learn more about a product or service, and 81% have been convinced to buy a product by watching a video. Shopkick’s groundbreaking, omnichannel video platform allows brands to tell their stories while their products are in shoppers hands. Shopkick helps deliver marketing messages to shoppers at-home when they’re planning their trip, and while they’re right in the aisle, boosting consideration and inspiring shoppers to purchase.

Mobile Marketing With Shopkick

CPG brands need to remain at the forefront of shoppers’ minds. Why not be the brand on everyone’s mind the moment they walk into a retail store? Targeted mobile marketing strategies recognize how modern consumers like to shop—browsing online for ideas before buying in-store. Shopkick can fuel all of the aforementioned CPG marketing strategies with powerful results.  

Shopkick can fuel all of the aforementioned CPG marketing strategies with powerful results. 

Kraft partnered with Shopkick to turbo-charge its holiday marketing strategy. The brand first reached shoppers at home with holiday-inspired content and in-app recipes to boost awareness and build pre-shop consideration. In-store, Shopkick sent consumers on a scavenger hunt through the store to find the featured products and scan their barcodes in exchange for rewards points. Putting the products in shoppers’ hands helped to drive trial and consideration. Shoppers who bought all three promoted baking products were further rewarded. The campaign achieved an ROI greater than 7:1, and drove more than 9 million in-store interactions. All told, 55% of the purchases were spontaneous and “unplanned.”

Continue reading how Shopkick CPG partners benefit from our app or contact us to learn how Shopkick can fit into a larger marketing strategy to drive retention and loyalty. 

Image courtesy of wavebreakmedia



Shopkick is the fun and easy way to earn free gift cards for the shopping you already do. Download the app now!

Connect with our team

Shopkick Partnerships deliver lasting results for your business. Fill out this form to learn more about Partner benefits.

Get the Shopkick Insights newsletter

Research and inspiration delivered to your inbox each month.

Follow us on Facebook


[instagram-feed cols=2 num=2]

Latest Tweets

Recent Pins

We’d love to hear from you!

Learn how Shopkick can deliver results for your business. Fill out this form and someone from our team will be in touch within one business day.

Dima Volovik

EVP of Product and Engineering

Dima Volovik is the EVP of Product and Engineering at Trax Retail — Shopkick.

Dima Volovik is the accomplished product and engineering leader who led teams to deliver innovative and commercially successful e-commerce products, marketplaces, and enterprise solutions for Amazon, Comcast, Fandango, and Universal Music. Before joining Trax, Dima was the Director at Amazon, where he led product development and Engineering for Amazon Appstore and Amazon Prime Video, CTO at Fandango, and Paciolan, head of technology at Golf Channel/Golf Now, and Global VP of Direct to Consumer Technology at Universal Music Group. Dima’s expertise includes developing consumer products, marketplaces, and enterprise solutions.

Dima grew up in Baku, Azerbaijan, where he received his MS in Electrical Engineering from Azerbaijan Oil Academy, and he currently resides in Los Angeles, California, with his family.