Table of Contents
Executive Summary
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- Big brands dominate
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- Figure 1: Top 10 brands, by total usage, January 2014-March 2016
- Figure 2: Top 10 brands, by usage in the last 12 months, January 2014-March 2016
- Digital lifestyles influence frequency of usage
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- Figure 3: Top 10 brands, by usage described as “All the time” by users, January 2014-March 2016
- Amazon the standout performer on favouritism
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- Figure 4: Top 10 brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Brands with high commitment drive usage in the last year
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- Figure 5: Proportion of brand commitment (agreement with “This is a favourite brand” or “I prefer this brand over others”), by proportion of total users who have used in the last year, January 2014-March 2016
- Less of a pattern when it comes to frequent usage
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- Figure 6: Proportion of brand commitment (agreement with “This is a favourite brand” or “I prefer this brand over others”), by proportion of total users who describe their usage as “All the time”, January 2014-March 2016
- Aspirational categories can drive commitment without active engagement
- Energy and service providers rely on inertia
- What we think
Brand Loyalty Overview – What You Need to Know
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- Big brands dominate on usage
- Digital lifestyles influencing most frequently used brands
- Brand favouritism and commitment generally reflect usage
- Strong correlation between usage in the last year and commitment…
- …but little correlation between commitment and high-frequency usage
Brand Usage
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- Size matters
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- Figure 7: Top 10 brands, by total usage, January 2014-March 2016
- Popular brands stay popular
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- Figure 8: Top 10 brands, by usage in the last 12 months, January 2014-March 2016
- Digital lifestyles influence frequency of usage
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- Figure 9: Top 10 brands, by usage described as “All the time” by users, January 2014-March 2016
- Some categories open to lapsed users
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- Figure 10: Top 10 brands, by lapsed users, January 2014-March 2016
Favouritism and Commitment
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- The power of emotion
- Amazon the standout performer
- Technology habits drive favouritism
- The giants of CPG benefit
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- Figure 11: Top 10 brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Food brands attract more casual preference
- Proof that Apple fanboys exist
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- Figure 12: Top 10 brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
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- Figure 13: Proportion of brand commitment (agreement with “This is a favourite brand” or “I prefer this brand over others”), by brand favouritism (agreement with “This is a favourite brand”), January 2014-March 2016
Where Usage and Favouritism Meet
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- General correlation between usage in the last year and commitment
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- Figure 14: Proportion of brand commitment (agreement with “This is a favourite brand” or “I prefer this brand over others”), by proportion of total users who have used in the last year, January 2014-March 2016
- Lower correlation between frequent usage and commitment
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- Figure 15: Proportion of brand commitment (agreement with “This is a favourite brand” or “I prefer this brand over others”), by proportion of total users who use “All the time”, January 2014-March 2016
- Loyalty differs by sector
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- Figure 16: Consumer perceptions of how well different firms reward loyalty, December 2015
Sector Review – What You Need to Know
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- Low emotional connection in finance markets, despite high involvement in consumer lifestyles
- Low engagement with travel brands means few opportunities to build loyalty
- Technology service providers can lock consumers in, but new entrants apply pressure
- Major food and drink brands drive greater favouritism
- Automotive and fashion represent more aspirational categories
- Energy sector defined by inertia
- Function beats glamour in building preference in BPC markets
- Newspaper brands are tribal and divisive
Finance
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- Finance brands often criticised
- Insurance brands face an even tougher task to build loyalty
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- Figure 17: Factors influencing insurance purchases, September 2015
- Low favouritism reflective of lack of financial services glamour
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- Figure 18: Top 10 financial services brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Niche proposition can add favouritism to finance brands
- Heritage built in other sectors assists Post Office and AA
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- Figure 19: Top 10 finance brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
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- Figure 20: Statements associated with purchasing, by method of purchasing car insurance, December 2015
- High street banks earn high frequent usage
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- Figure 21: Top 10 financial services brands, by usage described as “All the time”, January 2014-March 2016
- Supermarket brands offer more visible rewards for loyalty
- Certain credit card brands perform better than the category itself
- Comparethemarket.com promotions influence perception of loyalty
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- Figure 22: Top financial services brands, by agreement with “A brand that rewards loyalty”, January 2014-March 2016
- Lack of heritage holds supermarket banking brands back
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- Figure 23: Brand commitment, by agreement with “A brand that rewards loyalty”, January 2014-March 2016
- Traditional inertia to switching bank accounts may be changing
- Change in cost of Santander 1|2|3 account leaves door open for other brands to step in
- Churn within insurance sector evident
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- Figure 24: Top 10 brands, by lapsed users in the finance sector, January 2014-March 2016
Retail
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- Amazon is a standout brand
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- Figure 25: Top 10 retail brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Online-only retailers impact market
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- Figure 26: Top 10 retail brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- Online set to become a bigger factor
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- Figure 27: Which shopping locations are being used more or less compared with a year ago, April 2015
- Location influences decision-making in supermarket category
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- Figure 28: Factors in choosing where to shop, August 2015
- Supermarkets dominate category on frequent usage
- Niche retailers also keep customers coming back
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- Figure 29: Top 10 retail brands, by usage described as “All the time”, January 2014-March 2016
- Loyalty schemes encourage a third to spend more
- Tesco’s Clubcard is a strength
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- Figure 30: Agreement with “A brand that has a strong loyalty scheme”, September 2014
- Discounters influence shift towards EDLP
- Type of retailer influences lapsed users
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- Figure 31: Top 10 brands, by lapsed users in the retail sector, January 2014-March 2016
Travel
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- Loyalty schemes in travel sector favour the bigger spenders
- Full-service airlines stand out
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- Figure 32: Top 10 travel brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Premium airlines foster greater preference…
- …while accessible hotels are preferred to exclusive ones
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- Figure 33: Top 10 travel brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”)
- Low usage limits opportunities for travel brands to engage
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- Figure 34: Top 10 travel brands, by usage described as “All the time”, January 2014-March 2016
- Loyalty increases with frequency of trips
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- Figure 35: Levels of holiday brand preference, April 2015
- Sporadic travel brand usage means high proportion of lapsed users
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- Figure 36: Top 10 brands, by lapsed users in the travel sector, January 2014-March 2016
Technology Service Providers
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- Contracts create an environment for engagement
- Content is king
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- Figure 37: Top 10 technology services brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Sky has potential to expand further
- BT lags behind Sky
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- Figure 38: Top 10 technology service provider brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- TalkTalk usage based on locked-in customers
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- Figure 39: Top 10 technology service provider brands, by usage described as “All the time”, January 2014-March 2016
- Streaming services instilling loyalty
- O2 best placed of mobile network providers
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- Figure 40: Top 10 ranking of technology service provider brands, by agreement with “A brand that instils loyalty”, January 2014-March 2016
- Low proportion of lapsed users highlights inertia
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- Figure 41: Top 10 brands, by lapsed users in the technology services sector, January 2014-March 2016
Food
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- Own-label is a key factor across many food categories
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- Figure 42: Types of own-label and branded products bought, September 2015
- Major food brands are favoured
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- Figure 43: Top 10 food brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Chocolate category has less of an own-label influence
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- Figure 44: Top 10 food brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- Seasonal food brands suffer on frequent usage
- Chocolate eaters likely to switch brands, crisps eaters less so
- Genius creates frequent usage among select group
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- Figure 45: Top 10 food brands, by usage described as “All the time”, January 2014-March 2016
- Own-label food and drink brands lack favouritism…
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- Figure 46: Favouritism and commitment shown towards own-label food and drink brands, September 2014
- …but frequency of usage remains relatively high
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- Figure 47: Ranking of own-label food and drink brands, by usage described as “All the time”, January 2014-March 2016
- Tired and boring brands struggle to maintain usage
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- Figure 48: Top 10 brands, by lapsed users in the food sector, January 2014-March 2016
Foodservice
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- Coupons provide short-term enticement but could damage true loyalty
- Quality more important than loyalty schemes for coffee shops
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- Figure 49: Factors influencing where hot drinks are purchased out of home, September 2015
- Proven consistency creates favouritism among foodservice brands
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- Figure 50: Top 10 foodservice brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Figure 51: Top 10 foodservice brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- Few foodservice brands visited frequently
- Some smaller foodservice brands have loyal followings
- Harris + Hoole takeover offers chance to capitalise on frequent usage
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- Figure 52: Top 10 foodservice brands, by usage described as “All the time”, January 2014-March 2016
- Pubs and restaurants suffer a greater proportion of lapsed users
- Restaurant brands hit by increase in competition
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- Figure 53: Top 10 brands, by lapsed users in the foodservice sector, January 2014-March 2016
Automotive
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- Consumers align themselves with aspirational car brands
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- Figure 54: Top 10 automotive brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Volkswagen commitment holds up despite scandal
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- Figure 55: Top 10 automotive brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- Frequent usage not dependent on preference
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- Figure 56: Top 10 retail brands, by usage described as “All the time”, January 2014-March 2016
- Aspiration in the car category increases churn
- Changing family status changes customer needs
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- Figure 57: Top 10 brands, by lapsed users in the automotive sector, January 2014-March 2016
Drink
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- Own-label less of a factor in drinks sector
- Range of drink categories represented
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- Figure 58: Top 10 drink brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Brands with wider appeal in top 10 for brand commitment
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- Figure 59: Top 10 drinks brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- High sugar content limits regular usage
- Diet Coke earns as much frequent usage as Coca-Cola
- British love for tea and coffee shines through
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- Figure 60: Top 10 drinks brands, by usage described as “All the time”, January 2014-March 2016
- Alcoholic drinks brands dominate lapsed user list
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- Figure 61: Top 10 brands, by lapsed users in the drinks sector, January 2014-March 2016
Energy
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- Energy brands struggle to create much positivity…
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- Figure 62: Comparison of brand satisfaction for energy brands and average across all brands, January 2014-March 2016
- …yet few switch provider
- British Gas dominates
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- Figure 63: Favouritism and commitment towards energy provider brands, July 2015
- Frequent usage high among bigger brands
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- Figure 64: Top energy provider brands, by usage described as “All the time”, July 2015
- Inertia evident within the energy sector
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- Figure 65: Proportion of lapsed users in the energy provider category, July 2015
Beauty and Personal Care
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- Functionality beats glamour on favouritism
- Male grooming brands on the rise
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- Figure 66: Top 10 BPC brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Biggest brands in their categories earn wide appeal
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- Figure 67: Top 10 BPC brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- Gillette and Colgate earn high frequent usage too
- Niche BPC brands create reason for frequent usage
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- Figure 68: Top 10 BPC brands, by usage described as “All the time”, January 2014-March 2016
- Branded chosen over own-label in most beauty categories
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- Figure 69: Usual brand preferences of beauty products, December 2014
- Boots No7 the standout
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- Figure 70: Brand favouritism and commitment towards own-label beauty brands, January 2014-March 2016
- Niche brands struggle to maintain customers
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- Figure 71: Top 10brands, by lapsed users in the beauty and personal care sector, January 2014-March 2016
Media
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- Readership of magazines and newspapers in decline
- Newspapers’ political stances ensure more tribal loyalty
- Daily Mail online content cements favouritism
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- Figure 72: Top 10 media brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Newspapers are divisive
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- Figure 73: Top 10 media brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- The Times’ paywall results in lower usage than favouritism suggests
- Niche Men’s Health has more frequent readership than level of commitment shown
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- Figure 74: Top 10 retail brands, by usage described as “All the time”, January 2014-March 2016
- Magazines have higher proportion of lapsed readers
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- Figure 75: Top 10 brands, by lapsed users in the media sector, January 2014-March 2016
Technology Products
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- Ecosystems could help create inertia to switching
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- Figure 76: Reasons for choosing smartphone owned, November 2014
- Google and Apple have a real advantage
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- Figure 77: Top 10 technology product brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Apple promotes strong emotions
- Google has potential to extend its influence
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- Figure 78: Top 10 technology brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- Constant interaction with devices drives high frequency of brand usage
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- Figure 79: Top 10 technology brands, by usage described as “All the time”, January 2014-March 2016
- Users also loyal to operating systems
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- Figure 80: Favouritism and commitment within operating system brands, January 2014-March 2016
- Brands must maintain reputation for innovation
- Premium headphones brands struggle to maintain user base
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- Figure 81: Top 10 brands, by lapsed users in the technology product sector, January 2014-March 2016
Fashion
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- Fashion dependent on exclusivity
- Lack of engagement and similar proposition limits favouritism
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- Figure 82: Top 10 fashion brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Premium fashion brands create commitment without active engagement
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- Figure 83: Top 10 fashion brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- Despite low usage, Rolex performs strongly across metrics
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- Figure 84: Top 10 fashion brands, by usage described as “All the time”, January 2014-March 2016
- Exclusivity limits high proportion of lapsed users
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- Figure 85: Top 10 brands, by lapsed users in the fashion retail sector, January 2014-March 2016
Household
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- Own-label affects loyalty towards brands in some household markets
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- Figure 86: Branded versus own-label product purchasing for household care products, April 2015
- Fairy’s performance particularly impressive
- Yankee Candle adds glamour to functional category
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- Figure 87: Top 10 household care brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Branded washing-up liquids seen as more effective
- Dyson benefits from style and reach
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- Figure 88: Top 10 household care brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- Niche household brands have small band of loyal followers
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- Figure 89: Top 10 household care brands, by usage described as “All the time”, January 2014-March 2016
- Lack of upbeat brand image causes customer drift
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- Figure 90: Top 10 brands, by lapsed users in the household care sector, January 2014-March 2016
Home
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- Brand important in choice of next fridge
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- Figure 91: Factors influencing choice of next fridge, January 2015
- Pyrex follows up high level of trust with strong favouritism
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- Figure 92: Top 10 home brands, by agreement with “This is a favourite brand”, January 2014-March 2016
- Le Creuset’s lifetime guarantees promote commitment
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- Figure 93: Top 10 home brands, by commitment (net agreement with “This is a favourite brand” and “I prefer this brand over others”), January 2014-March 2016
- White goods regularly used
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- Figure 94: Top 10 home brands, by usage described as “All the time”, January 2014-March 2016
- Smeg’s lower recommendation ties in with fewer repeat purchases
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- Figure 95: Top 10 brands, by lapsed users in the home sector, January 2014-March 2016
Factors Influencing Loyalty – What You Need to Know
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- Consumer attitudes are different to behaviour
- Other factors come into play
- Energy and finance sectors lack reputation for customer service
- Some brands used on basis of necessity rather than experience
Trust in Brands
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- Correlation between trust and commitment…
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- Figure 96: Agreement with “A brand that I trust”, by commitment, January 2014-March 2016
- …but trust does not necessarily determine frequent usage
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- Figure 97: Agreement with “A brand that I trust”, by users who describe their usage as “All the time”, January 2014-March 2016
Brand Differentiation
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- Consumers align themselves with differentiated brands…
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- Figure 98: Perceived differentiation, by commitment, January 2014-March 2016
- …but little difference when it comes to frequent usage
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- Figure 99: Perceived differentiation, by users who describe their usage as “All the time”, January 2014-March 2016
Customer Service
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- Accessibility influences link between customer service and commitment
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- Figure 100: Perceived great customer service, by commitment, January 2014-March 2016
- Little link between customer service and frequent usage
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- Figure 101: Perceived great customer service, by users who describe their usage as “All the time”, January 2014-March 2016
Brand Satisfaction
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- Few brands have satisfaction of lower than 50%
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- Figure 102: Positive satisfaction (net of “good” or “excellent”), by commitment, January 2014-March 2016
- Energy sector is an outlier
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- Figure 103: Positive satisfaction (net of “good” or “excellent”), by users who describe their usage as “All the time”, January 2014-March 2016
Brand Recommendation
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- Inertia even influences brands with lower likely recommendation
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- Figure 104: Recommendation, by commitment, January 2014-March 2016
- Concern for Vodafone and TalkTalk
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- Figure 105: Recommendation, by users who describe their usage as “All the time”, January 2014-March 2016
Cross-category Comparison – What You Need to Know
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- Aldi and Lidl growth not just based on price
- While still cautious, more consumers are ready to engage with finance brands once more
- Preference and usage of technology brands still on the rise
- iOS benefiting from increasing influence of operating systems
Aldi and Lidl Increasing Emotional Bond
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- Shift in supermarket preference
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- Figure 106: Proportion of users who describe their usage as “All the time”, August 2012-August 2015
- Change in habits not solely linked to price
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- Figure 107: Brand commitment (agreement with “This is a favourite brand” and “I prefer this brand over others”) shown towards supermarkets, August 2012-August 2015
Finance Brands: Re-engaging with Consumers
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- Increase in trust reflected by increase in commitment
- Banking brands showing promise…
- …but it is taking longer for some
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- Figure 108: Brand commitment shown to selected high street banks, January 2012-November 2015
- Upturn in fortunes not limited to banking brands
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- Figure 109: Brand commitment shown to selected price comparison websites, April 2012-May 2015
- Insurance brands also increasing proportion of commitment
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- Figure 110: Brand commitment shown to selected insurance specialists, January 2012-November 2015
Technology Users Bound to Their Devices
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- Technology changing attitudes towards brands
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- Figure 111: Apple and Samsung brand favouritism and commitment, November 2011-November 2015
- Frequent usage also increasing
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- Figure 112: Usage of Apple and Samsung described as “All the time”, November 2011-November 2015
- Operating systems become as important as handsets
- iOS benefiting the most
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- Figure 113: Operating system favouritism and commitment, December 2013-November 2015
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
Appendix – Brands Covered
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