A Nation of Floozies
Ehrenberg-Bass’ Byron Sharp taught us all to give up on loyalty to grow a brand, but new research from Nielsen has revealed just how promiscuous we are when it comes to shopping around with brands.
The study of more than 30,000 consumers by Nielsen reveals brand loyalty is dead. Globally, as much as 92 per cent are ‘playing the field’ when it comes to choosing retail products, and that number is only slightly lower in Australia at 87 per cent.
Yet few marketers have made adjustments to their marketing initiatives or innovation pipeline and continue to throw money against marketing efforts aimed at holding or growing loyalty without a clear benefit proposal. For brand marketers and advertisers, the implication is significant. If you are one of those marketers who has always relied on the 80/20 rule as a benchmark for sales success, then you can no longer expect 20 per cent of your portfolio to drive 80 per cent of sales.
Brand disloyalty is being driven by numerous factors, including the Amazon effect, convenience, and social media. In Australia, the key influencers are the newness factor, value for money, wider availability of products, and changes in shopping behaviour amongst younger consumers.
Read the full article on B&T.
