Creating brand loyalty remains important
July 17, 2007
by FoodBusinessNews.net Staff
LONDON — It takes much more effort to find a new customer than to keep an existing one, according to "How to create brand loyalty among today’s consumers," a new report from Datamonitor plc.
"Seeing new customers by increasing the pace of innovation is one way to attract new consumers," said Matthew Adams, consumer market analyst and author of the study. "However, this is inherently difficult as the pace of innovation must match consumers’ expectations and perceptions. There is still some loyalty in consumer goods markets and marketers need to make it a strategic goal as the markets they serve in developed countries have reached maturity and retention takes precedence over acquisition of consumers."
Brand loyalty is defined as longer-term repeated buying because of a brand commitment related to positive brand associations.
Datamonitor says according to some estimates, it costs nine times more to attract a new consumer than to retain an existing one. Additionally, because 90% of new consumer product launches fail each year, Datamonitor suggests long-term commitment is essential to retailers’ sales.
A 2006 Grocery Manufacturers Association survey reported that only 29% of brand loyal consumers would buy a different brand if their preferred choice was out of stock, with 67% of consumers reporting they would try to find the brand in another store or wait until their next shopping occasion.
Fifty-one per cent of Europeans and Americans appreciate brands matching their attitudes and outlook on life, and 56% value marketing reflective of their personal situation.
Datamonitor also reports a variety-seeking trend among U.S. and European consumers with more consumers valuing the importance of trying new things.