Those 12 percent of highly loyal consumers are responsible for about 70 percent of the brands volume: a ratio of 6:1. The 14 percent of medium loyals only represent 25 percent of the brands volume or a ratio of slightly less than 2:1. Lose 50 percent of your loyal consumers and the 35 percent of your brands volume that they used to represent drops to about 12 percent, so you wind up with 23 percent less volumeand the need to create the next generation of loyal consumers.
The Bottom Line
From this study a few facts that can help a brand better understand its customer loyalty can be gleaned:
Loyal consumers, those who buy a brand day in day out, are the lifeline of any product
-
- Consumer loyalty is fickle, you can lose much more than you think in only a year
- Most products are purchased on a replacement basis so purchasing decisions are made on a weekly or, at least, a regular basis, moving us toward a steady state of advertising
Related articles:
Two Guys Walk Into A Bar??
In Advertising, Persistence Wins the Day
Brand Growth And The Randomness of It All
