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Brand Management
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?
Retailer Services
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?
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