How to strengthen brand loyalty with shopper insights

In today's fast-paced retail environment, the two-way street of brand loyalty has many twists and turns. Our research shows that brand loyalty varies across categories and that brand loyalists of all stripes are open to trying new brands. By gaining shopper insights to understand motivations, attitudes and preferences, brands can foster stronger relationships – even in a world where brand loyalty is highly fickle.  

The fickle nature of brand loyalty

Research that we recently conducted on brand loyalty reveals that across diverse product categories, most shoppers demonstrate strong brand preferences but remain open to trying alternatives. This challenges the traditional notion of unwavering brand loyalty and presents both opportunities and challenges for brands. 

Key takeaways from our study examining brand loyalty across 16 product categories, from dairy products to pet food, include:   

• Category matters. For instance, 32% of respondents are brand-loyal in pet food, while only 5% show that same warmth to frozen foods. 

• It’s an open relationship: In most categories, 30-45% of respondents are willing to try other options, with a significant portion (24-35%) who enjoy experimenting with different brands. 

• Brand doesn’t always matter: In some categories, up to 25% of consumers give little thought to the brand name on the label. 

Why shopper insights are essential to building brand loyalty 

In a landscape where brand loyalty is highly fickle, understanding shopper motivations, attitudes and preferences through detailed insights can significantly help brands connect with shoppers.     With insights into what drives shoppers' decisions and their emotional connections to products, brands can tailor their marketing strategies to resonate more deeply with shoppers. This personalized approach not only enhances the shopping experience but also builds a stronger, more meaningful relationship between the brand and the shopper. Despite the inherent volatility in brand loyalty, these insights enable brands to stay agile and responsive, adapting quickly to changing consumer behaviors and preferences, ultimately fostering a more loyal customer base.    For example, the Plant Based Foods Association (PBFA) identified "flexitarians" as a high-potential growth group and hypothesized that placing popular plant-based products in the meat department would boost adoption. To test this, 84.51° partnered with Kroger to conduct an in-store test in two markets, measuring the impact on key performance indicators through causal impact analysis. Alongside the test, shopper interviews, emails and education for store personnel were conducted. 

The results showed a 23% increase in sales for plant-based items in the test stores compared to control stores. PBFA gained a deeper understanding of flexitarian shoppers and their motivations, discovering that reasons for choosing plant-based foods vary by generation. These insights guided merchandising and marketing decisions for plant-based meats and other alternative products, highlighting the value of shopper insights in driving growth and improving customer engagement. 

How can brands understand and engage shoppers?  

Ongoing research and analysis are essential for staying attuned to the shifting sands of shopper behaviors and preferences. Combining research techniques with cutting-edge data science technology can help brands answer questions such as:    

• Who is buying my brand and do they also buy my competitors?   84.51° Stratum, a self-serve analytics solution, combines customer behavioral insights with retail performance measures for deep customer understanding. Using a first-party transaction level data source in grocery retail, brands can measure trial and repeat for new items, penetration among household segments and see how many households only buy their brand.    

• How can I optimize product design to prioritize the elements shoppers value most? Measure the value shoppers place on different features and simulate real-world decision-making scenarios with an analytics tool like the Feature Optimization Suite. With this tool, brands can identify which features are most important to their customers and make informed decisions about product design.   

• How do I stay top of mind with shoppers when competitors are a click away or sharing shelf space? Kroger Precision Marketing makes advertising more effective by closing the loop between media exposure and store sales. Brands can create personalized and meaningful experiences with advanced science and exclusive Kroger purchase data to drive awareness, conversion and repeat purchases.   

• What can I do to build and retain loyalty among my customers?  Engage your customers and show them that you understand their needs with relevant, personalized offers. For example, our Best Customer Communication events such as Loyal Customer Mailers, MyMagazines and MyMagazine Extras do exactly that by offering personalized coupons that can be used in-store and online.  

Embracing the complexity of modern shopper behavior

While brand loyalty remains a significant factor in purchasing decisions, today's shoppers are more fluid in their choices, and subject to multiple influences throughout their path to purchase. By utilizing in-depth shopper insights to understand shoppers’ ever-changing needs and preferences, companies can craft strategies that respect brand preferences while also encouraging exploration.  

Drive lasting loyalty with deeper customer understanding and actionable strategies.