Tuesday, September 13, 2011

Major Packaged-Goods Brands Lost 46% of Loyalists

The top 100 packaged-goods brands saw reduced loyalty from 46% of their loyal consumers in the past year, exacting a steep toll on sales, according to a study by Catalina Marketing based on shopper loyalty-card data. 

The big brands fared better than the 52% rate of lost loyalists shown in a Catalina study two years ago that looked at a broader group of 685 brands. So bigger brands commanded more loyalty -- just not a whole lot more.

On average, the 100 brands in the study grew sales 2.2% during a 52-week period ended early July, according to Catalina. But had the brands held onto their loyalists, they would have grown an average of 8.5% more.

Of course, that assumes a brand holds onto its own loyalists while also snaring defectors from others. But it also shows the potential power of maintaining loyalty, according to Todd Morris, exec VP-brand development at Catalina. 

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