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Seventy-three percent of US consumers are open to considering a new brand in at least one shopping category, according to a report from Criteo sent to Business Insider Intelligence. This doesn’t mean that consumers are constantly looking to abandon the brands they’re loyal to, but it does suggest brands are always at risk of losing customers.
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Consumers are interested in trying new brands across a number of categories. The majority of consumers (52%) reported being “very likely” to try a new grocery brand, while an additional 29% said they’re “likely” to and 16% noted they’re “somewhat likely” to, making it the category shoppers are most interested in for trying new brands.
But categories including apparel; consumer electronics; home & garden; health & beauty; shoes, handbags & accessories; and books & stationary all had over 80% of consumers select one of those three responses, so this interest in new brands is present throughout retail.
Consumers’ interest in new brands cuts both ways as companies must work to keep their customers, but also have the chance to woo new ones.
- For brands working to keep their loyal consumers, value, selection, and customer service are key. A brand that offers the best value, lowest prices, and best selection is more likely to have customers return to it, with 66%, 53%, and 49% of respondents, respectively, citing these as their top reasons to return. Meanwhile, two of the top reasons shoppers have stopped buying from a brand they were loyal to are a decline in quality and rising prices (53%) and poor customer service (43%). This means that retailers that want to defend their customer base from competitors need to make sure their value and shopping experiences stay attractive. One surefire way to do this is to build a loyalty program that enables customers to take advantage of discounts and feel like VIPs, as new brands will struggle to offer such value during a customer’s first shopping experience.
- Brands looking to steal customers from competitors should lean on discounts, samples, and word-of-mouth.Consumers listed discounts (54%), receiving a trial or sample (54%), and a recommendation from a friend (52%) as the top reasons they’d try a new brand. All of these options can incentivize a consumer to give a brand or product a shot, and if the company’s products, price, and shopping experience are impressive enough, they can win return visits from that shopper. The power of recommendations from a friend suggests that word-of-mouth can have a serious effect, and brands looking to maximize its value should try to convince its existing customers to post about it online or write reviews to get more exposure. Brands should encourage consumers to post on Facebook in particular, as it’s the digital channel consumers are most likely to use to discover new products, with 49% using it.
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See Also:
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- Chipotle is giving away free guac — here’s how to get some
- US retail sales bounced back in January
SEE ALSO: The three types of Amazon buyers — and how other e-tailers can lure them away
Source: Business Insider – dkeyes@businessinsider.com (Daniel Keyes)