ST. PETERSBURG, Fla., Sep 07, 2011—New     research conducted by Catalina,      the leader in precision brand building, finds that total revenues of the Top     100 brands in the nationwide Catalina     Network of grocery, drug and mass merchant stores grew by just 0.7     percent during a 12-month period ending in early July. The report also     demonstrates that brand defections and reduced share among previously     highly loyal     consumers represent a major drag on individual brand performance.

“The     2011 Mid-Year Performance Review is a strong argument for making     loyalty a more significant part of brand strategy,” said Todd Morris,      executive vice president, brand development, for Catalina. “Staying     close and in touch with the changing needs and purchase behaviors of     your brand’s most valuable consumers is the best way to retain loyal     customers and grow revenue.”

The average brand in the Top 100 grew revenues 2.2 percent during the     past 12 months. However, the average brand also experienced a lost     opportunity equal to 8.5 percent of revenues due to defections and     reduced share among shoppers who had been highly loyal buyers a year     earlier. For the average brand, 46 percent of previously highly loyal     consumers either completely left the brand (20 percent) or reduced their     loyalty (26 percent).

The study also shows that the fastest-growing brands tended to hold onto     more of their loyal consumers, while large revenue decliners tended to     lose more loyal consumers. On average, the lost opportunity due to     loyalty erosion equaled 11.1 percent of revenues for the five largest     revenue decliners in the Top 100, versus 6 percent for the top gainers.

Brand defection often occurs suddenly, according to the study. One out     of three shoppers who were 100 percent loyal to a brand in the first     year of the study completely abandoned the brand for the next year after     just one competitive purchase.

About the Study

The     2011 Mid-Year Performance Review is based on sales and individual     consumer purchasing behavior observed across 21,000 US grocery, drug and     mass merchant stores. Although this does not include all stores in the     Catalina Network, the conclusions in the report are generally in line     with total network results. Highly loyal consumers are defined as those     who make 70 percent of all category purchases with a single brand during     a 12-month period. The study looks at the impact of defections and     reduced loyalty during the 12 months ending in early July of 2011 among     consumers who were highly loyal to Top 100 brands during the previous     12-month period. (Link to report:  http://info.catalinamarketing.com/halftime-report/  )

About Catalina Marketing

Catalina is committed to helping manufacturer and retail brands deliver     unprecedented performance and healthier outcomes. With proprietary and     integrated in and out-of-store marketing platforms—including     CouponNetwork.com (  http://www.couponnetwork.com   ),      Catalina enables the delivery of the right message to the right audience     in the right environment. Catalina leverages the world’s largest,      transaction-level, shopper-data warehouse to develop, deliver, and     measure shopper and patient-driven engagements to approximately 90M     households and 130M health consumers, annually. Media distribution     channels include 50,000 food, drug and mass locations worldwide,      including 18,000 US pharmacies. Catalina is based in St. Petersburg,      Florida, with operations in the US, Europe and Japan. To learn more,      please visit   http://www.catalinamarketing.com   .

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