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The Database: Turning Shopper Disloyalty into Brand Opportunity

2 minute read | April 2019

Episode 20

Today’s retail landscape has a cheating problem. That’s because consumers have more choice and access to products than ever, and they’re growing increasingly comfortable with trying new brands. While choice and access are fantastic for shoppers, manufacturers and retailers now have an incredible burden to bear—make an offering so great that consumers won’t seek an alternative elsewhere.

This cheating problem isn’t small potatoes. In the U.S., more than half of the top grocery retailers have lost share of wallet over the past five years specifically because of customer disloyalty. Additionally, a recent Nielsen survey found that 32% of Americans say they’re more product-disloyal than they were just half a decade ago.

In addition to an abundance of product choice and access, floor space at brick-and-mortar retail outlets is shrinking. In the U.S., today’s brick-and-mortar store is 7,500 square feet smaller than it was 10 years ago, yet there are 9,000 more products available for people to choose from. So not only do brands need to make great products, they need to secure appropriate shelf space to be seen.

That said, not all of the news is bad. Some categories, particularly in the consumer packaged goods (CPG) space, continue to experience high levels of loyalty that run generations deep. However, we can’t ignore the fact that brands spend billions each year to retain or obtain customers—a very traditional approach to foster loyalty. So perhaps there’s a better way. What if we flip the model and embrace disloyalty? Embrace it by steering away from mass marketing and toward personalized, life-fulfilling marketing strategies that encourage shoppers to try something new.

On this episode, we’re exploring why consumers are cheating on brands; what brands can do to turn the trends into opportunity; how brands can use reference data to create personalized experiences; and which data puts them in the right position to succeed.

Our guests on this episode include Scott McKenzie, Nielsen Intelligence Leader, Lauren Fernandes, manager of strategy and analytics at Nielsen, Julie Currie, who leads Nielsen’s global retail product team, and Joel Percy, head of business consulting at ciValue, a Connected Partner company.

Looking for more episodes? Subscribe to The Database on iTunes, Google Play, Stitcher or Spotify, and catch up on previous episodes on our Megaphone page.

Episode transcript.

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