In Brand Management, it is critical to understand consumer loyalty in the context of the competitive set in which a brand operates. There are many important consumer loyalty issues to consider such as:
- Are consumers loyal to a size/form/flavor?
- What line extension should be considered?
- Are consumers loyal to a manufacturer?
- How loyal are frequent category buyers?
Consumer Purchasing Dynamics
Brands with the greatest loyalty are the most profitable because consumers will seek them out and will accept higher prices for a product they are loyal to. Understanding the consumer is fundamental and knowing the dynamics between your brand and the competitive set will help set your brand strategy. Key issues related to loyalty include:
- What else do consumers buy – categories and brands?
- What is mix of basket per purchase?
- What other brands are important alternatives?
For retailers, consumer loyalty is a key driver of repeat traffic and volume growth. Retail focused loyalty issues include:
- What categories attract consumers to a store?
- How does pricing and promotion affect store loyalty?
- What is the impact of frequent shopper programs?
- How is consumer loyalty influenced by private label products?
Nielsen Can Help
Capture key consumer purchasing information from a representative panel of households with Homescan to help segment buyers based on loyalty, understand the competitive set, and drive loyalty building programs. Find out more.
Through the eQ suite of services, we can help you identify customer equity and vulnerability by highlighting the drivers of satisfaction and loyalty. You can study customers' evaluations of the services provided at key “touch points” and uncover their respective strengths and weaknesses for determining resource allocation priorities. This allows customer segmentation and value analysis and the benchmarking of competitive strengths and weaknesses. Find out more.