{"id":8051,"date":"2025-03-12T01:08:33","date_gmt":"2025-03-12T05:08:33","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2025\/03\/12\/3-ways-brands-can-connect-with-2025s-astute-consumer\/"},"modified":"2025-03-12T03:24:54","modified_gmt":"2025-03-12T07:24:54","slug":"3-ways-brands-can-connect-with-2025s-astute-consumer","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/3-ways-brands-can-connect-with-2025s-astute-consumer\/8051\/","title":{"rendered":"3 Ways Brands Can Connect with 2025\u2019s Astute Consumer"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Allie Naughton, Client Strategy Manager, Listrak\u00a0<\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">With access to more choices, platforms and content, today\u2019s consumer is smarter than ever before. At the same time, inflation has placed pressure on their spending habits, making them more discerning about when and where to spend.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The combination of consumer savvy and price consciousness means that it is increasingly competitive for retailers and brands to win \u2013 and retain \u2013 customers.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Here are three key ways that retailers and brands can connect with consumers in 2025:<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Be transparent with prices &#038; strategic with discounting:\u00a0<\/strong>\u00a0For many consumers today, price matters above all, and astute consumers are less likely to be brand loyal unless they understand that the brand\u2019s superior quality is worth the price.\u00a0If a brand doesn\u2019t adequately explain why their product is worth premium prices, consumers may be just as happy to pay less for a \u201cdupe,\u201d as evidenced by last year\u2019s headline-making\u00a0<a href=\"https:\/\/www.yahoo.com\/lifestyle\/target-athleisure-sets-going-viral-172505222.html\">athleisure<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.cbc.ca\/news\/world\/walmart-wirkin-bag-1.7423682\">handbag\u00a0<\/a>dupes.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Brands need to clearly communicate why their products are worth it, whether it is because of their sustainable ingredients or the quality of their materials and craftsmanship.\u00a0 This transparent communication will be rewarded by shoppers.\u00a0For example, according to\u00a0<a href=\"https:\/\/www.pwc.com\/gx\/en\/issues\/c-suite-insights\/voice-of-the-consumer-survey.html\">PwC\u2019s 2024 Voice of the Consumer Survey<\/a>,\u00a0\u00a0consumers are willing to spend an average of 9.7% more on sustainably produced or sourced goods, even amid cost-of-living and inflationary concerns.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">All retailers, no matter the quality and sustainability of their product, also need to be strategic in their discount strategies this year. Some consumers are willing to wait until large discount times of year (i.e. Black Friday\/Cyber Monday) to feel like they are stretching their dollar farther, and brands need to be there to meet that demand. Most brands heavily discount on average five times a year with their biggest discounts timed around the holidays. As we look into 2025, it will be critical for brands to balance value-driven discounting as well as transparent positioning to succeed.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Make consumer loyalty worth their while:\u00a0<\/strong>\u00a0In 2025, consumer loyalty is not something to be taken for granted. Even among older consumers, long courted by brands for their supposed fidelity, loyalty is waning, with<a href=\"https:\/\/www.mckinsey.com\/industries\/consumer-packaged-goods\/our-insights\/state-of-consumer\">\u00a0McKinsey\u00a0<\/a>reporting,\u00a0\u201cSpeaking of older shoppers, it turns out that the brand loyalty they\u2019ve long been known for is a thing of the past.\u201d<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Astute consumers want to receive something in exchange for their loyal business, and brands must reconsider what they can do to incentivize their very best customers. According to<a href=\"https:\/\/www.emarketer.com\/content\/retailers-launch-loyalty-programs-rapid-pace-amid-membership-increases\">\u00a0eMarketer,<\/a>\u00a0\u201cUS consumers held an average of 19 loyalty program memberships per person in 2024\u2014the highest rate in 10 years.\u201d\u00a0\u00a0Last year, major brands like\u00a0<a href=\"https:\/\/www.modernretail.co\/marketing\/how-sephora-is-evolving-its-loyalty-program\/\">Sephora\u00a0<\/a>and<a href=\"https:\/\/brand-innovators.com\/news\/target-comes-full-circle-with-its-loyalty-program\/\">\u00a0Target\u00a0<\/a>debuted leveled-up loyalty programs.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">When rethinking their existing loyalty programs, retailers should prioritize personalization. eMarketer reports, \u201cThe top aspect of a personalized shopping experience consumers value is a loyalty program that\u2019s tailored to their shopping preferences.\u201d<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Retailers should also be looking to improve the ease of using loyalty points, such as enabling shoppers to\u00a0pay with loyalty points at the point of sale (POS), to improve engagement and enhance the shopping experience.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Plus, look for ways to offer more experiential rewards such as trips and sporting events for the very best customers. For example, Starbucks recently linked its reward program with Marriott Bonvoy, about which the\u00a0<a href=\"https:\/\/about.starbucks.com\/press\/2024\/new-starbucks-rewards-and-marriott-bonvoy-relationship-unlocks-exclusive-benefits-for-loyalty-members-to-fulfill-their-passions-for-travel-and-coffee\/\">companies said<\/a>,\u00a0 &#8220;By enrolling in both programs and linking accounts, members can earn Marriott Bonvoy points and Starbucks Stars and be on their way toward free stays and coffee as well as access to curated travel experiences.&#8221;<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Unify in-store and digital experiences:\u00a0<\/strong>\u00a0As they do their homework before they buy, smart consumers are combining online shopping and research with the tactile experience of handling products in store. Over the past year, digitally-native brands like Skims and Wayfair opened physical stores, highlighting the importance of both brick and mortar and digital experiences.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The challenge for brands: consumers expect one unified and personalized experience that accounts for all their shopping habits. According to\u00a0<a href=\"https:\/\/www.salesforce.com\/blog\/retail-predictions\/\">Salesforce<\/a>\u00a0research, \u201c84% of shoppers expect a seamless shopping experience across a retailer\u2019s app, website, and in store, but 29% feel retailers don\u2019t deliver on that expectation.\u201d<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">In order to keep pace with consumer behavior, brands and retailers need to work to unify their data from all platforms, as well as in person shopping, to better understand and communicate with their consumers.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The bottom line: Astute consumers require leveled-up strategies&nbsp;<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Consumers today have become better informed, more sophisticated and more discerning. In order to compete for, win and keep their business, retailers, in turn, will need to be more transparent with prices, more rewarding of loyalty, and better able to provide a seamlessly unified shopping experience across platform and brick-and-mortar stores.\u00a0<strong>\u00a0<\/strong><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The challenges facing brands and retailers also represent great opportunities to level-up their game with strategies that will make 2025 their best year yet.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><strong>About the Author<\/strong><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><em>Allie Naughton is Client Strategy Manager at\u00a0<a href=\"https:\/\/www.listrak.com\/\">Listrak<\/a>, which recently issued its\u00a0<\/em><a href=\"https:\/\/www.listrak.com\/2025-retail-outlook\"><em>2025 Retail Outlook<\/em><\/a><em>.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The challenges facing brands and retailers also represent great opportunities to level-up their game with strategies that will make 2025 their best year yet.\u00a0<\/p>\n","protected":false},"author":7,"featured_media":8052,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[16],"topics":[2],"class_list":["post-8051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-retail","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>3 Ways Brands Can Connect with 2025\u2019s Astute Consumer | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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