I read an article today that “loyal” consumers of packaged goods are no longer as loyal as they used to be… this article states that last year, the average brand lost 33% of their customers’ brand loyalty:
The report found that for the average brand, 33% of its “high loyal” customers—defined as those who made 70% or more of their category purchases with a single brand during a year—actually defected completely from those brands between 2007 and 2008, while still continuing to buy within the category.
Another 15% reduced their loyalty in 2008, occasionally buying a rival CPG brand in the category. All told, the average CPG brand in the study saw 52% of its highly loyal customers in 2007 taper off or disappear completely in 2008.
I’m sure the recession has a lot to do with this… but I’d bet anything that coupons do too. Our brand-specificness tends to fly out the window when the deals come around…
J.R. says
But the flip side of that is that manufacturers use coupons to build their brand loyalty.
If WishBone runs coupons for salad dressing, they are going to take business from Kraft. So then Kraft will run coupons to get their business back. It’s a win for us.
But there are still plenty of products where I’m pretty brand loyal. Usually it’s because of product quality, or dietary restrictions (low fat-cholesterol-sodium) that make me choose one item over another in spite of the price.
I’ve been very satisfied with the Presidents Choice stuff at Jewel, but it seems that they discontinue all the stuff I like: the volcano salsa, the sheppard’s pie, and now the grated 3 cheese blend.