LOYALTY AND
BRAND PERFORMANCE
We present all our major findings on:
1. Customer loyalty - what individuals say and do
2. Brand loyalty - loyalty metrics are predictable!
3. The importance of 100% loyal customers
4. Defection and acquisition
These findings come together in some surprising implications
for marketing targets & strategy.
This briefing provides a very basic introduction to the
'Double Jeopardy' law, and the Dirichlet model of choice
behaviour that describes loyalty patterns in many different
markets. Dirichlet provides practical benchmarks and helps us
understand why these patterns occur.
This session takes 2 hours plus discussion time.
TARGETING
In this popular seminar we look seriously at some of the
assumptions of modern marketing. The research results &
their implications are surprising.
Do brands sell to segments ?
How much should we concentrate on our best customers ?
Retention vs Acquisition - which is really cheaper ?
Cross selling - how much is reasonable to expect ?
Myths of CRM & Database marketing
80/20
SMART
TARGETING
A special preview of the forthcoming report.
In an era of accountability & media fragmentation some
targeting makes sense, but like adding salt to a dish, too
much targeting can undo the good.
And it's easy to get targeting wrong. We show that counter to
widespread belief the statement that "targeting is more
effective than mass marketing" is not automatically true - in
theory or in practice. Indeed in real-world practice it very
often turns out to be false.
We reveal the little known traps of targeting - and provide
guidelines for getting targeting right.
GROWTH
Real results documenting how brands grow & decline. The
implications of a great practical value for those who plan
for growth.
Landmark results that show:
What happens to loyalty (& other metrics) when brands
grow or die ?
How does churn (defection & acquisition) affect
growth ?
How fast do new brands build loyalty ?
DOUBLE
JEOPARDY
A marketer not knowing about Double Jeopardy has been likened
to an engineer not having heard of Newton's laws of motion
– or gravity even ! Yet textbooks don't cover it, or
get it wrong. This briefing addresses this gap.
Smaller market share brands are bought by far fewer buyers in
any time period, and these buyers are a little less loyal (in
both behaviours and attitudes). This near universal 'double
jeopardy' pattern gives meaning to many marketing metrics.
This briefing explains why Double Jeopardy occurs, what it
really means, and the practical marketing implications and
applications. It is very important for understanding how to
deliver growth.
PROFILING
YOUR CUSTOMER BASE
What sort of customer buys our brand ?
And how are they different from the customers of other brands
?
This briefing covers award winning research, showing you what
you customer base should be expected to look like. Essential
knowledge for the correct interpretation of segmentation
studies.
And important implications for marketing and advertising.
BRAND
PERSONALITY
Do buyers attribute personality traits to brands?
How much do personality traits vary between brands?
Does brand personality matter?
How stable are personality traits over time ?
Brand personality is now a popular tool for creating brand
identity. Our R&D provides serious empirical
research on this hot topic, with some exciting & useful
findings.
DIFFERENTIATION
While much has been written on differentiation but there has
been little fundamental empirical research.
In this briefing we address this gap, and answer some
important questions:
Do buyers see the brand they buy as differentiated?
Do more successful brands have unique qualities (ie qualities
associated only with them not competitors)?
How does differentiation relate to brand performance?
Do markets vary in differention levels ?
The findings are provocative, refreshingly clear, and
important – for advertising, brand strategy and how
marketers should be appraised.
DIFFERENTIATION VERSUS
DISTINCTIVENESS
This seminar is for those involved in decisions about
branding and communication content decisions.
It shows the extent to which brands are considered
differentiated by their buyers
Explains what distinctiveness is, and why it is a desirable
strategy... and how it differs from differentiation
Discusses, with case studies, how distinctiveness works
BRANDING
MATTERS
Competing brands vary considerably in market share (why ?),
yet comparatively little in loyalty (why ?).
Do emotional bonds to brands matter ?
How do consumers use brands ?
What does good branding really look like?
And what does this mean for advertising and media strategy?
We show why branding matters - but not for the reasons taught
at business school, nor for the reasons advertising agencies
pronounce.
WHAT IS
GOOD BRANDING ?
Making your brand distinctive, easily noticed is essential.
The same applies to your advertising; it has to be well
branded, distinctive, and unmistakably yours.
This special preview briefing gives our early findings on
what makes good branding, and how to measure it - for
advertising & packaging.
Includes empirical results on the ad likeability - correct
branding relationship.
BRAND
SALIENCE
Contemporary marketing theory downplays the importance of
awareness, and focuses on brand attitude/evaluation. We turn
this thinking upside down, put simply as marketers we got
awareness wrong for decades. This briefing presents a whole
new world view and:
what we mean by 'salience' - not awareness, not 'top of
mind', not attitude
we show why brand salience matters so much
and how it explains patterns in loyalty metrics & brand
buying
and how it can be measured
This leads to practical guidelines for advertising, and
advertising testing.
HOW BRANDS
COMPETE
Who competes with whom ?
How do brands really compete in real world markets ?
Which brands will you gain or lose most customers to ?
Brand segmentation
This briefing shows how to predict which other brands your
customers will buy. It provides benchmarks for
'cannibalisation' (eg for brand extension and new brand
launches) and for sharing customers.
WHAT
ADVERTISING (REALLY) DOES FOR YOUR SALES AND BRAND
This briefing draws on discoveries about buyer behaviour and
brand performance.
Why advertising is needed
Persuasion or Creative Publicity
What advertising tries to do - TV, print, and www
Implications for how to advertise, how much and when.
SINGLE
SOURCE - AND WHAT IT CAN DO FOR ADVERTISING AND MEDIA
EFFECTIVENESS
Much advertising produces little in the way of sales uplifts
- even when it is producing sales. We explain why, and show
how the 'single source method' can reveal which ads are
having sales effects and which are not.
A special preview of the our report documenting the
tremendous promise of single-source analysis. And what has
been learnt from single source over the past 3 decades.
CHANGING
PRICES: PREDICTABLE PATTERNS IN CONSUMER REACTION TO
PRICE
This briefing covers a variety of pricing issues that the
R&D Initiative has investigated.
We show predictable patterns concerning the impact of price
changes on sales. Price elasticity, the usual measure of how
much a brand's sales change with a change in price, is not
fixed for a brand, but varies with circumstances. Our
large-scale experimental work identifies factors that lead
consistently to bigger and smaller elasticities.
We look at both "real" price changes and price promotions.
Academic research on pricing has shown a wide range of
confusing results. But recent R&D has discovered patterns
in the sales reactions to both price promotions and price
changes in general.
How important is price when buyers buy ?
What do price promotions do ?
Who buys on special ?
How to predict price elasticities
The (now known) conditions which affect reactions to price
LOYALTY
PROGRAMS & PRICE PROMOTIONS
What can we expect from a loyalty program ?
Do loyalty programs enhance loyalty ?
Do price promotions attract new customers ?
Do price promotions erode loyalty ?
We give answers to the above questions and show how loyalty
programs and price promotions affect buying behaviour.
SERVICE
QUALITY & SATISFACTION BENCHMARKS
Firms typically spend considerable funds, and management time
tracking customer satisfaction and perceptions of service
quality. But how should this information be interpreted ?
What targets are reasonable to aim for ? This research
provides grounded benchmarks that give context and meaning to
satisfaction data.
We answer questions like:
Is my satisfaction score high, low, or normal ?
Should I benchmark against competitors or firms in other
industries ?
Does the data collection method affect results ? Is this
predictable ?
How is satisfaction linked to loyalty ?
This briefing is demolishes many of the myths surrounding
this area.
ATTITUDE
& BEHAVIOUR
What attitudes really reveal
What is our brand tracking really telling us ?
How to predict future behaviour
What is image tracking and perceptual mapping good for ?
We show some very surprising, and little known, facts about
attitudes. And discuss the implications for market research,
advertising, and marketing objectives in general.
SURVIVING
RETAIL POWER
This briefing looks at the increasing concentration of
retail, particularly in the grocery trade. Building on our
R&D concerning buyer behaviour and media consumption we
examine the degree of power retailers have, and whether media
fragmentation has reduced the power of national brands.
In short, we offer a realistic picture of how to live with
and protect your brand against retailer power.
PRIVATE
LABELS
Who buys private labels ?
Is there loyalty to private labels...and national brands ?
Which brands do they compete with ?
How do they compete ?
How are premium private labels changing things ?
This briefing presents our R&D on private label buying,
along with managerial implications.
MEANINGFUL
MARKETING METRICS & MEANINGFUL MARKET MODELLING
- what to measure
- marketing metrics for products and services
- how to give metrics context and meaning
- Double Jeopardy, Duplication of Purchase law, the Dirichlet
model
We explain how to get real value and meaning out of your
data.
And how to avoid the traps of modern statistical modelling.
We introduce simple techniques, using tables and graphs, to
help you see for yourself and communicate to senior
management.
TV VIEWING
IN THE NEW ENVIRONMENT
Cable and Digital TV has dramatically changed the number of
channels many households have access to. Also the nature of
TV channels has changed qualitatively.
Our R&D looks at patterns of viewing amongst households
that have access to many channels. We examine channel loyalty
and whether fragmentation has led to segmentation.
UNDERSTANDING MEDIA
EFFECTS - OUR AGENDA
Typically consumer brand companies spend on media an amount
equivalent to their entire annual profits. Excitingly, there
is tremendous opportunity for efficiency & effectiveness
gains.
This special preview briefing is based on a foundation study
interviewing advertisers, and advertising & media
agencies on how they actually buy & plan media strategy.
This briefing goes on to covers our top priority media
questions, with preliminary findings & insights.
Topics include reach vs frequency, clutter effects, how
people consume multiple media, measuring direct advertising
sales effects, predicting TV ratings.
WORD OF
MOUTH
Do consumers produce more positive or negative word of mouth
(WOM)?
Does this vary by category?
Is there a segment prone to give WOM? Are they older?
younger? brand 'loyals' or 'switchers' ?
Which really has more impact - positive or negative WOM ?
This briefing provides startling new research, as well as
practical suggestions for managing WOM.
PRE-TESTING
& AD LIKEABILITY
Being able to predict if your ad campaign is likely to be
successful is a useful skill to have. In this seminar we look
at:
What is pre-testing? Is it predictive? Diagnostic? Both?
How is it done - what are your options?
What is known about pre-testing effectiveness?
Given the empirical results suggesting Ad Likeability is an
effective predictor of sales we specifically examine:
What is likeability? What makes an ad likeable?
How do you measure likeability?
What should you expect in terms of likeability levels? Will
this vary for brand users versus non-users?
Pre-v Post test effectiveness measure.
The results will broaden your perspective on what makes an ad
likeable (it doesn't have to be humour). And maybe change the
way you pre-test or use benchmarks to judge ad effectiveness.
BEST
MARKETING PRACTICE
This presentation draws out many of the implications (the
do's and don'ts) of the R&D Initiative findings to date.
Normally we talk about a finding and then its implication.
This briefing turns things right around and focuses on
immediately on practical strategic directions.
It covers things like what we think people should measure and
worry about in brand (health, equity etc) tracking. What
directions to give to the ad agency. How to evaluate
marketing communications. Who to target. etc etc.
It's designed to be practical, upbeat and
positive.