Startling Results Demand Radical Rethink On Brand
Tracking
·
Insight from 39,000 consumers from 17
markets
·
Across automotive, beverages, hair
care, payment methods and retail categories
A survey
undertaken by TNS, a global custom marketing research organisation which
operates in over 80 countries has discovered that 42 per cent of consumers may
not end up buying their first preferred brand.
“The finding is critical for brand managers
across sectors as the research shows that the trend even applies to relatively
low-priced, frequently-bought goods, such as laundry detergent and hair care as
well as higher priced products, such as cars,” said Steve Hamilton-Clark, CEO
of TNS MENA.
“Brand managers preoccupied with being the
customers’ preferred choice could do well to understand that there are other
factors too that need their attention.”
Hamilton-Clark explained that fast moving
consumer goods are more prone to consumers moving in and out of brands,
resulting in no true behavioural loyalty from many consumers while the overall
brand usage may appear to be stable.
Steve Hamilton-Clark, CEO of TNS MENA |
“In the Middle East markets we see that
customers are not switching service providers completely. Therefore even if
service provider brand measures do not track well, other factors are likely to
influence customers continuing on with the service provider. What may be at
stake here is share of wallet rather than complete switching.”
The TNS study, entitled ‘The Commitment
Economy,’ canvassed 39,000 consumers in 17 markets and covered eight key
sectors – automotive, beverages, coffee, hair care, headache remedies, laundry
detergents, payment methods and retail.
“The survey shines a light on why customer
preference doesn’t translate into sales success,” explained Hamilton-Clark. He
said the survey results has helped pinpoint three marketing levers that account
for why people don’t buy what they most want – affordability, availability and
shared decision-making.
“These marketing levers show why, in an
increasingly competitive marketplace, popularity doesn’t necessarily mean
purchases,” added Hamilton-Clark.
He went on to say that the survey has
unearthed a need for a radical rethink on brand tracking approaches.
Steve Hamilton-Clark, CEO of TNS MENA |
“It is no longer about simply tracking
brand health. It is also about understanding the decision making context,
as well as tracking a variety of emotional and market factors that influence
the purchases those consumers actually make,” Hamilton-Clark concluded.
The research was conducted using TNS’s
market-leading and recently re-engineered ConversionModel technology which
evaluates two critical factors affecting brand choice – power in the mind and
power in the market. It helps brands calculate exactly how much revenue they
are missing out on due to the marketing levers.
No comments:
Post a Comment