Saturday, October 6, 2012

Truths About Brand Loyalty

Swedish grocery store where private label prod...

No longer can brands expect long-term loyalty, even from its most faithful customers.  As economic pressures mount, competitive landscapes shift, and life simply happens, it may seem pointless for companies to try to lock-in customer loyalty.

1. Price does not equal value.
2.  As brand loyalty increases, consumers are less sensitive to price changes.
3. Private label enjoys loyalty too.
Concluding recommendations come straight from the report:
  • Invest heavily in establishing and strengthening brand loyalty, focusing in on and delivering against the most meaningful needs of key and target shoppers.
  • Leverage frequent and granular assessments of core and target shoppers to ensure a comprehensive and always-current understanding of value drivers for key categories and brands.


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