This post was created in partnership with Fetch
Key takeaways
- For consumers, price certainly matters, as consumers seek the best value when they purchase.
- Value is more than just price; it can also include rewards programs, consumer experience, and product use.
- It’s easy to fixate on metrics, but lifetime value shows the impact of building relationships, while new approaches can reach new consumers.
Consumers aren’t spending less this holiday season. But they are becoming more selective about what they buy, weighing price, quality, convenience, rewards, and the experience a brand provides.
During an ADWEEK House Advertising HQ group chat co-hosted with Fetch, industry leaders discussed how changing shopping habits are redefining value, how shoppers decide what’s worth buying, and how brands can turn holiday transactions into lasting customer relationships.
Decision-making before the cart
Jacqueline Willemsen, general manager of omnichannel and agency at Fetch, urged marketers to consider the trade-offs everyday Americans face this holiday season.
“Those trade-offs are important for us to understand. We need to understand what value means to them,” Willemsen explained. “We know that it’s not just a price war where discounts earn their attention. We have to find ways that create a relationship with a consumer.”
Jessica Brown, executive director of marketplace and partnerships at WPP Media, pointed to an earlier hurdle in the purchase process: decision fatigue. She said brands and shopping platforms need to “make it easy for consumers to make a decision.”
Brown noted that while shoppers feel the pressure of inflation, spending hasn’t slowed. Willemsen added that Fetch’s data shows consumers are actually spending more but changing what they buy to get better value.
When deciding which purchases are worth it, shoppers are also looking for ways to come out ahead. Alex Stone, SVP and managing director of enterprise partnerships at Horizon Media, explained, “Consumers are trying to win with every purchase.” “They want more value from what they’re buying.” He added that knowing they’ll earn extra points for buying a particular CPG brand factors into their decisions.
Little indulgences and a great experience
The conversation turned to how—even in uncertain times—consumers still want to treat themselves. Lauren Newman, chief revenue officer at Button, said consumers weigh into what she calls the “grief to dollar ratio.”
In other words, a consumer may know something is expensive, but there are other considerations when purchasing, like, “Is it really going to impact my life? And how much do I use this? What is the necessity?”
Willemsen added that rewards programs shine by playing into that desire to treat yourself, since Fetch users often redeem points for small delights they don’t usually buy.
Rewards can build relationships that outlast the offer
For brands, understanding why consumers buy is only part of the equation. The next challenge is using behavioral data to offer something relevant enough to influence their decisions.
Because Fetch users earn points for every receipt they upload, Willemsen shared that the platform sees what they buy across categories. That information helps brands tailor rewards around specific goals, like attracting first-time customers or encouraging repeat purchases.
That connection between rewards and loyalty sparked a discussion about shoppers switching to less expensive duplicates. Newman shared that she often sees consumers choosing dupes, driven by challenger brands paying higher commissions to creators and cashback platforms. That said, Willemsen noted that many shoppers still splurge on brands they have a relationship with, like a preferred coffee.
Amie Owen, chief client officer at Flywheel, saw truth in both points. In her experience, consumers often switch brands, like a shopper choosing store-brand pain reliever over Tylenol. But consumer decisions vary by category and come down to how brands message the audiences they want to reach. “Branding still matters,” Owen explained. “But by the same token, it depends on what that category is, and who you’re reaching.”
A bigger picture of marketing performance
Panelists also questioned whether traditional media metrics adequately capture how marketing impacts business.
Owen argued that ROAS can become misleading when teams evaluate it without considering broader commercial results. “I think at the end of the day, we should be looking at business results, and it’s not just that one-sided view,” Owen shared. “I think that we get stuck on the numbers.”
Newman extended the argument to incrementality. She questioned whether brands place too much emphasis on distinguishing new customers from existing shoppers moving between channels, particularly when a transition to an app can produce a more valuable customer relationship.
For Newman, the more important measure is what happens afterward. “Lifetime value of the customer. That, to me, is the measure of success on every partnership,” Newman explained.
Make holiday loyalty last beyond the season
As the conversation returned to the holidays, panelists considered how brands can tell whether a campaign created a one-time transaction or a more valuable customer relationship over time. Newman called the season a critical window to turn first-time buyers into loyal customers in the new year.
The holidays offer a chance to establish relationships that brands can then nurture long after the initial transaction. “Use this holiday as the moment to build a relationship with a customer,” Willemsen said, emphasizing the importance of “continuing to build a relationship throughout the next year.”
Featured Conversation Leaders
- Jessica Brown, Executive Director, Marketplace and Partnerships, WPP Media
- Lauren Newman, Chief Revenue Officer, Button
- Amie Owen, Chief Client Officer, Flywheel
- Alex Stone, SVP, Managing Director, Enterprise Partnerships, Horizon Media
- Jacqueline Willemsen, General Manager, Omnichannel and Agency, Fetch
- Zoë Ruderman, Chief Content Officer, ADWEEK
