countering the confusion of consumer packaged goods


Customers who are loyal to a brand tend to buy mostly from it; customers who are disloyal shop around.

Loyalty is generally expressed in terms of an individual customer’s purchases within a category. So if Customer A spends £100 each year on soft drinks, and £75 of those purchases are of Coca Cola, then we can say that Customer A is 75% loyal to Coca Cola in soft drinks.

We know from Byron Sharp that loyalty generally goes hand in hand with penetration. Brands that are bigger also command more loyalty, and niche brands generally have worse loyalty.

Category: Marketing
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