When it comes to consumer products, more than half (58%) of Australians don’t pay attention to the brands they’re buying if the product meets their needs. That’s according to new research by SAP Emarsys in association with Deloitte, which surveyed more than 2,000 Australian consumers and 100 senior marketers at multinational brands on shifting attitudes towards consumer products.
The Consumer Products Engagement: Australia report, introduces the Customer Engagement Maturity (CEM) score, ranking consumer product brands on their customer engagement strategies. The new research builds on Bain & Company’s findings, which highlight a major industry shift toward ERP and SAP S/4HANA. This shift underscores the need for consumer product brands to break down silos, accelerate operations and engage customers more meaningfully.
To thrive in the ‘Engagement Era,’ as defined by SAP Emarsys, brands must establish a robust data foundation across their entire business. Embracing AI-driven, omnichannel strategies is crucial, as it transforms fragmented data into actionable insights, building long-term relationships and achieving ‘true’ customer loyalty and lifetime value.
Forming an elite group of leaders, just 15% of brands excel in the new engagement-driven landscape while the remaining rest are falling behind. This ‘Engagement Era,’ success depends on a personalised omnichannel approach across the entire customer lifecycle with leading brands in real-time engagement—like SAP Emarsys customers Krispy Kreme and Ferrara, with its 35+ candy brands—already putting these strategies into action:
- Optimising engagement in real time: 49% of CP brands say they can engage with consumers in the moment—but only 30% of brands are doing so.
- Predicting future consumer behaviours: 84% of CP brands say they can predict future consumer behaviour but only 16% are doing so.
It is no surprise consumer brands are struggling. As Australians continue to grapple with the cost of living, 60% have switched to own-label alternatives because they are more affordable—and more than half (55%) think the quality of own-label alternatives is comparable to branded ones.
For example, one of the leading global consumer product brands, Krispy Kreme’s omnichannel success highlights the importance of AI in scaling customer engagement. The brand witnessed an astounding 53% boost in leads and significantly improved engagement across channels. Carolina Figueiredo, E-commerce and Digital Solutions Manager at Krispy Kreme, commented “It is really important that we provide a unified experience. So having digital partners that really allow that seamless integration is essential.”
Krispy Kreme leverages brand collaborations beautifully to keep its offerings fresh and exciting, consistently delighting fans to drive engagement. The donut manufacturer’s recent collaboration with Hershey’s is the perfect example, blending iconic chocolate flavours with its beloved doughnuts to create irresistible new treats that keep fans coming back.
As consumer apathy towards brands grows, 79% of marketers think they need to overhaul engagement strategies in 2025 – yet only 26% believe their company can effectively personalise marketing, and of more concern, while just 74% are doing so.
“Aussie consumers aren’t just becoming less loyal to brands – they’re ignoring them entirely.” said Sara Richter, CMO at SAP Emarsys. “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. 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.”
Where Does Your Brand Stand in the Engagement Era?
The Customer Engagement Maturity (CEM) Index reveals three types of brands:
Brands in the ‘Predictive’ category are demonstrating that to truly excel in the Engagement Era, a robust ERP foundation, bolstered by a customer engagement platform, is essential. Yet, many brands are behind with just 33% of CP marketers integrating customer engagement data with their financial and operational systems, such as Enterprise Resource Planning (ERP).
For those clinging to outdated strategies, investing in AI-driven, real-time engagement is no longer a luxury—it’s an essential. This investment could be the critical factor in whether a brand achieves its revenue targets in the Engagement Era.
