Mastering Discovery to Win Loyalty Amid Fluid Shopper Expectations
For decades, retailers have been running programs offering incentives like discounts, sweepstakes and giveaways to encourage shopper loyalty.
Brands have simultaneously stressed their long histories and reliability in an effort to build relationships with shoppers that will last a lifetime and even establish preferences that will be passed on to a new generation.
But the rise in direct-to-consumer challenger brands, social media's emphasis on novelty, and shifting shopping behaviors have upended those tried and true strategies.
Today's contenders need to rewrite their playbook. Loyalty is increasingly fluid, discovery is fragmented, and shoppers are evaluating products through a blend of price, identity, inspiration and convenience. P2PI research reinforces this fragmentation: 7 in 10 shoppers say they frequently or sometimes notice brand ads in-store after seeing them online, and 83% are reminded of products they previously considered by online ads and like when retailers suggest new products.
That interplay between channels is reshaping how discovery unfolds. To stay in the consideration set, both brands and retailers must rethink how they guide exploration, reduce friction and build relevance at every step of the journey.
Reimagining Loyalty for Multi-Brand, Multi-Channel Shoppers
Even with consumers' current price sensitivity, legacy messages and discount-driven programs no longer anchor shoppers the way they once did. With challenger brands and constant digital novelty reshaping expectations, companies must rethink how loyalty is built.
"The rise of challenger brands is reshaping the way consumers build their consideration sets," Carly Johnson, Momentum Worldwide SVP, group director of strategy, told the Path to Purchase Institute. "Shoppers are no longer confined to the same handful of legacy options, and they’re exploring alternatives, even in categories once considered fully commoditized.
"Today, you can walk — or scroll — down almost any aisle and find a challenger brand that has redefined value by pairing functional performance with a stronger story, whether that’s lifestyle fit, design or health," she noted.
The bevy of options makes it even more important for brands to avoid out-of-stocks or other friction that might lead to product switching. But retailers and brands have the opportunity for growth if they can connect with shoppers who are looking for inspiration either in the store or before their trip. More than half of shoppers expect retailers to recommend products that match their preferences and needs, according to a July Valtech report.
"We're seeing interest in discovery happen in truly omnichannel and fluid ways as the lines blur between digital and physical," said Raphaela Walsh, CVS Media Exchange vice president, head of product. "Not only are shoppers seeking recommendations digitally before heading into the store, but impulse-driven purchases are also increasing as consumers are influenced by what they see when standing in the aisle."
Trusted national brands still have plenty of power. More than 60% of shoppers default to buying the branded products they know and trust, an April report from NielsenIQ found.
But that trust can also be placed in private labels: The same study found that 59% of U.S. consumers say they trust retailer-endorsed store brands.
"Shoppers have become 'selective switchers,'" said Chris Galloway, Brandmovers EVP of strategy and design. "In the wake of recent inflation, some are still trading down or branching out when the value equation is better, but trust and familiarity continue to anchor baskets in CPG."
Brands and retailers might assume that they could lower prices to ensure loyalty in these cases, but affordability isn't always their highest priority.
"While price remains an important driver, consumers are increasingly willing to trade up when a brand offers them something more relatable, inspiring or aspirational," Johnson said. "This dynamic makes clear that loyalty is no longer guaranteed. Consumers don't have to settle for brands when fresh options exist that better reflect their values and deliver a richer value proposition."
Mary Kate Huffman, Blue Chip senior director, commerce and investment strategy, told the Path to Purchase Institute that many categories are facing challenges with loyalty, but guiding discovery can lead to sales.
"It's working well with social and inspiring people with influencers, because people are looking for things that they can be passionate about," she said. "That comes to life in different channels — maybe not [always] at-shelf, but we are often including multiple channels to inspire and to drive that action."
Leaning Into Retail Media to Connect Insight, Discovery and Conversion
Retail media now plays a central role in supporting exploration and steering shoppers toward relevant options across every interaction point. Using data to personalize offers and track how discovery leads to actual sales allows retail media operators to make this process smoother.
"Retail media connects consumers to products like never before, both in-store and digitally," CVS's Walsh said. "As the industry matures, it has rapidly changed from first-party data activation to full-funnel, omnichannel influence across the shopper journey. With the ability to reach consumers across formats from connected TV to in-store activations, retail media doesn't just drive product discovery, it creates lasting brand connections."
Companies need to understand the role search is playing in driving product discovery, whether consumers are looking for products based on occasion or benefit or just typing in the name of a trusted brand. But traditional search itself is declining in prominence as shoppers instead look to social media and community platforms for recommendations.
For example, CVS sought to capitalize on this behavior by launching a partnership with Reddit to reach consumers seeking health, wellness and beauty products on the social platform and track attributed sales.
"Through this collaboration, brands can tap into authentic, interest-based conversations that help shape everyday decisions and consumer brand choices," Walsh said.
Brands of all sizes can benefit from retail media's ability to drive discovery.
"For legacy brands, retail media helps reinforce loyalty and ensure visibility in crowded categories by strengthening consideration and conversion to maintain or grow market share," Walsh said. "They're also typically looking to expand household penetration and increase basket size."
Challenger brands, meanwhile, can leverage retail media to create breakthrough opportunities to build credibility, drive awareness and consideration, and reach high-intent audiences they may not otherwise access, she said.
The omnichannel reach of retail media is important: Walsh noted that a third of CVS shoppers use the app while in stores to research and compare products and find savings. Such offers can be paired with in-store audio and displays to secure a sale.
Momentum's Johnson said that while consumers may be expected to discover brands online, especially through social media, more captive discovery moments are happening in-store.
"Consumers in a shopping mindset are far more open to new or new-to-them brands when they are navigating a retail environment and exposed to something that catches their attention," she stressed. "It makes the role of the in-store experience that much more important for brands looking to recruit new buyers and keep their loyalists."
Turning Discovery Into Long-Term Loyalty
Customer relationship management is key to closing the loop to gather insights such as receipt and SKU-level e-commerce data on what worked, which will allow brands to fine-tune future campaigns.
"Most social discovery converts off platform, so when discovery starts on social but the purchase lands elsewhere, be sure to capture the data and tailor next-best recommendations," Galloway said.
Consumers are no longer monogamous to brands, but even as they try new products, they still tend to stick to a small set of brands in their shopping repertoire.
"Loyalty program owners and managers should leverage their program data to lean into consumers' desire for novelty and discovery," Galloway said. "Personalized and targeted offers that cross categories or introduce new offerings generate real return due to your audience’s existing relationship with your brand."
More than 80% of shoppers often notice personalized offers and product recommendations on retailer sites and apps, according to P2PI research, making these moments prime territory for nudging the next purchase.
Galloway suggests retailers and brands collaborate to channel shopper curiosity into loyalty. Customers could receive early access to new products through personalized discovery boxes or be given missions to try three brands within a given portfolio in order to earn credits redeemable for trial coupons.
"Consumers still prioritize financial value and flexibility, but younger cohorts also expect digital, personalized experiences, perfect for steering curated trial," he said. "Loyalty programs should recognize and reward exploration within your portfolio and across moments, not only repeat of a single hero SKU."
Using Innovation and Partnerships to Stay Relevant and Spark Discovery
Product innovation and cross-category collaborations are becoming more common as brands seek to build audiences and make a splash on social media. Mondelez International has been using limited-edition Oreos to bring shoppers to the snack aisle, which also boosts purchases of its base cookies.
Rachel Lawson, director of shopper marketing at Mondelez, told Modern Retail that while 28% of the people who buy its limited-edition SKUs don't buy the base flavor, the Space Dunk SKU launch helped them appeal to new and lapsed shoppers.
"Loyalty isn't just about being the best or being consistent; it's the ability to evolve in ways that show up as both trusted and surprising for consumers," Johnson noted.
Even the most established brands need to look for ways to stay relevant in their customers' lives, something that has driven a wave of acquisitions like PepsiCo buying the prebiotic soda brand Poppi to capitalize on the explosive growth of the functional beverage category and Unilever buying DTC personal care brand Wild to appeal to shoppers looking to reduce their use of single-use plastics.
But companies should also find ways to use their understanding of a consumer's evolving needs and behaviors to find ways to make their existing portfolio feel fresh and meaningful.
"This often means expanding the brand's relevance across new usage occasions, cross-category collaborations, partnerships and beyond," Johnson said. "Reframing the brand in unexpected but credible ways that spark curiosity and excitement help to take iconic brands and reintroduce them to loyal consumers and new audiences as they move through different life stages."
