The loyalty loop: Brands will connect on-premise and off-premise beverage consumption
As beverage brands expand their ready-to-drink beverage options, in terms of products, quality and even purchase points, brand presence across the omnichannel consumer journey becomes much more difficult to connect. In 2024, brands will develop new ways to connect consumer data between on-premise consumption in cafes, bars or restaurants and retail touchpoints.
This journey is not just about the physical route a product takes from the cafe or bar to the consumer, but also about the digital footprints left by consumers across the various purchase channels.
For example, a consumer might buy a chilled Starbucks drink from a convenience store, but this transaction doesn't feed into Starbucks' customer data. The company is still blind to the consumer's behavior in this segment, missing out on valuable insights that could enhance their brand strategy.
These interaction points with the brand present a significant opportunity for beverage companies to better understand their customers and tailor their offerings accordingly. The same principle applies to the alcoholic beverages and premium spirits sector. Whether a consumer is savoring a premium spirit on-premise (in a bar) or off-premise (purchased to drink at home), it's challenging to attribute the consumer identity across both spaces.
The challenges and opportunities of in-store retail technology
Attempts to connect touchpoints and collect consumer data in retail have been rocky, and most in-store technology is still in the early stages. For example, digital cooler screens that display beverage ads on doors in convenience stores can often glitch or become overwhelming for consumers, creating a negative experience that’s difficult for brands to control or oversee. Instacart has also rolled out a pilot program of AI-powered smart carts to automatically track consumer purchases in real time and make recommendations. The carts use computer vision to sense which products are being added to the cart, keeping track via a digital checklist, and seeing real-time, personalized ads on a small screen based on the additions.
By leveraging technological capabilities to connect consumer identities and manage first-party data across experiences, beverage companies can gain valuable insights. This not only reduces costs but also provides a competitive edge in the market.
However, if the focus is primarily on the technology rather than the consumer experience, the return on investment from these opportunities may be compromised. This is because the added complexity may not justify the potential benefits. By placing the consumer at the heart of the process and adopting a holistic approach to designing the consumer journey, the integration of new technology can be made seamless.
Publicis Sapient’s customer journey transformation solution
The future of the beverage industry in 2024: how to get started
By adapting to these trends, embracing technology and prioritizing consumer needs, beverage brands can navigate the evolving landscape and secure success in 2024 and beyond.
