Brand switching 101: How to change consumer brand preference and drive purchases
By Team Fetch
April 8, 2023
As disruptor brands are challenging notions of brand loyalty, brand switching is becoming increasingly important to CPG companies. Companies who need to command a larger market share have several strategies to encourage this consumer behavior, including targeted campaigns, audience segmentation and more.
But CPG companies need strategies that build lasting behavior. That’s where Fetch can help. The Fetch app can help drive consumer behavior through personalized offers that attract and keep customers coming back. Here’s how brand switching is essential for businesses – and how Fetch can help.
What is brand switching?
Brand switching is converting a long-term consumer of a particular brand to a loyal consumer of another brand. In other words, it changes shopper behavior. Brand switching is the opposite of brand loyalty.
Why do brands matter to consumers?
Brand-loyal consumers typically have an emotional attachment to the brand they prefer. They trust the product and believe it adds value to their lives. For some, brands can reflect the shopper’s values, such as when customers buy eco-friendly products or items from women-owned companies.
How does consumer preference impact a brand or business?
Repeat customers are vital to a business’s growth. Companies want to prevent customer switching for many reasons.
- It costs 500% more to acquire a new customer than to maintain an existing one
- Brand-loyal consumers purchase 90% more frequently than new consumers
- Existing customers are up to 13x more likely to make a purchase than new customers
How can retail businesses encourage brand switching?
Brands have several strategies to convince consumers to change brand preference.
- Understand who is most likely to buy a product
Understanding consumer preference is key to finding new customers. Seek out shoppers with a history of buying in a category or those who have purchased a competing brand’s products.
- Conduct targeted campaigns
Use data-driven insights to build marketing campaigns geared towards the shoppers most likely to switch. Brand preference metrics can help identify these shoppers.
- Partner with related brands
Simplify decisions for consumers by working with related brands to market products more effectively within a category. For example, a dish soap company might partner with a cleaning scrubber company to offer consumers a deal. This also benefits buyers who are suffering from decision fatigue.
- Tap into ready-made solutions
Platforms like the Fetch app help brands connect with millions of active shoppers across all retailers without having to build their own retail media networks. With omnichannel verified purchasing information and a proven ability to drive consumer behavior, the Fetch app can shift consumers’ brand loyalty through targeted, in-app rewards.
Strategies to activate brand love and change consumer preference
- Be genuine: Consistency and authenticity in your messaging across all channels is important to consumers. 88 percent of consumers say authenticity is important when deciding which brands they support.
- Stay in touch: Make it easy for consumers to contact you and be responsive when they do. Social media makes it easy to keep interested customers up-to-date on the latest brand news.
- Leverage the “Noble Edge Effect”: Brands that care about causes – from sustainability to workers’ rights – are perceived as having better-quality products. But beware of tactics like greenwashing – consumers will see through it. Once again, authenticity is a must.
- Offer value: This goes beyond having a quality product. Use purchase behavior to understand what your consumers want and need, then provide more of it. For example, the Fetch app’s omnichannel approach can help provide personalized value at scale.
FAQs about brand switching
Here are some of the most common questions about changing brand preferences.
Why do consumers switch brands?
- Value: If customers notice a decline in product value, they may purchase another brand that provides more.
- Cost: If consumers perceive that the quality of a product doesn’t match up to the price, they will seek out a product that offers either a higher value or a lower cost.
- Communication: There’s no reason to be unreachable in the digital age. Consumers must be able to contact customer service easily – and customer service needs to be friendly, responsive and efficient.
- Innovation: Brands that are behind the times, whether in tech, marketing or creativity, will be abandoned in favor of more up-to-date options.
How can brands and retailers strategically get their audience to change brand preferences?
Partnering with a platform like the Fetch app is the most efficient, cost-effective way to influence brand choice. The app influences buyer behavior by providing personalized and targeted offers to shoppers, which produce measurable results and a verified return.
How do brands capture purchase intent?
Measuring purchase intent requires 360-degree data that combines shoppers’ demographics, purchasing habits and more. For example, Fetch app users supply this information in the form of snapping receipts. They are then rewarded for the purchase with Fetch points, the platform’s in-app currency. This process allows Fetch brand partners to have a holistic picture of consumer behavior and purchase intent.
How much does it cost to capture a buyer’s attention?
Customer acquisition cost varies by company, but the average CAC for the consumer goods industry is estimated to be $22.
How brands can become a consumer’s product of choice
- Create a truly superior product: Quality components and manufacturing will stand out in a crowded field.
- Provide excellent value: This isn’t just about price. Value also concerns what the product adds to consumers’ lives, whether that’s sustainability, reliability or excitement.
- Relevancy and personalization: Utilizing an omnichannel approach to understand consumers allows brands to anticipate and meet their needs.
- Invest in brand marketing that builds community: Shared values and interests (and a place to express them, like social media) will help consumers connect to a brand outside of the shopping experience.
- Target customers most likely to convert by partnering with Fetch: The Fetch app rewards users for snapping their receipts, allowing brand partners to provide personalized rewards to make it easy to find and convert potential buyers.
Cut down on months of research, campaign planning and technical implementation. Change consumer preferences with Fetch.
Fetch offers a solution to understanding and influencing consumer behavior. Simplify the brand-switching process and boost market share with the Fetch app.
Reach out to the Fetch for Business team for details.
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