How loyal are my customers?
How many of your customers also buy other products within the category? And do my customers or common customers have a similar profile?
Case
A supplier wants to know if the profile of his customers is the same as that of the competitors. This way, he can adjust his communication or assortment if necessary.
How loyal are the customers?
About 22% of their customers only buy their products, all others also buy articles from competitors.
When we look at the profiles, we find that the loyal customers have a non-standard profile. We see an overrepresentation among 65-plus and families with older children. Families with younger children buy your products much less.
Source of the tables: in the 'Venn Diagram' (available in the Advanced Pack), go to the 'Venn Diagram' tab and select the products.
The assortment analysis of the Premium Pack allows you to analyze how much of their budget customers spend on your brand. If this is high, it means that your customers spend a large part of their budget on your products. If it is low, they also buy items from other brands.
In this case, we can see that one of my brands is doing quite well compared to the other brands.
However, for the other reference, it is among the lowest scores. Low brand loyalty can be explained by the presence of complementary products in the category that are not in your offer. Another reason could be that customers do not see much difference between the various brands and easily switch between brands depending on promotions.
Source of the tables: in the ‘Assortment Report’ (available in the Premium Pack), go to the ‘Brand Loyalty’ tab and select to show the brands.
In the same analysis, you can also check which other references they buy. Do they buy references from your own brands, or do they buy references from other brands?
Here we see that all customers who bought product 10 also buy product 2. If product 10 is yours and product 2 is not, it might be interesting to investigate whether you can add to your existing product or launch a new product to meet this need. Conversely, we see that only 14% of buyers of product 2 also buy product 10. Here there may be potential to link those buyers to your product 10.
Source of the tables: in the ‘Assortment Report’ (available in the Premium Pack), go to the ‘Cross selling’ tab and select a product segment.
Conclusion
The loyal customers clearly have a slightly older profile. The supplier can choose here:
- Either he focuses even more on his loyal customers by aligning his communication and product range with them.
- Or he sees potential in the other segments and goes in search of products that appeal to them more and adjusts his communication to a younger target group.
There still seems to be potential within his assortment, because for one of the brands, brand loyalty is slightly lower, and one of the products is always purchased together with another product.