Insight Overview:
Seek’s Brand switching insight leverages millions of transactions from Loyalty data to help companies better understand brand preferences and the purchase behavior of consumers. By analyzing the factors that influence brand switching, such as share of wallet and exclusivity, brands can identify opportunities to attract new customers, retain existing customers, and increase market share.
Insight Benefits:
- Develop targeted marketing campaigns: Based on the insights gained from the brand switching data, marketers can develop targeted campaigns that highlight the unique features and benefits of their products.
- Offer incentives and promotions: By offering cashback incentives and other promotions, brands can encourage customers to try their products and reduce the risk of switching to a competing brand. For example, offering a discount or cashback incentive for purchasing a product can help retain customers and reduce the likelihood of brand switching.
- Improve product quality and features: By analyzing the reasons why customers switch brands, brands can identify areas for improvement in their products.
- Monitor competitor activity: By analyzing brand switching data over time, brands can monitor competitor activity and identify changes in consumer behavior. This can help brands develop strategies to counteract the competition and retain customers.
Key Metrics:
- Substitutability: Percent of purchases made not for your brand of customers who do buy your band. The lower the substitutability the more exclusive customers you have.
- Substitutability Rank: Brand ranking based on substitutability score
- Share of Wallet: Percentage of wallet for your brand within the category
- Dollar Sales: Dollar sales for your brand
- Unit Sales: Unit sales for your brand
- Purchases: Purchases for your brand
- Customer Demographics: Understanding your different customer groupings
Actions You Can Take:
- Competitive analysis: Utilize brand switching insights to conduct a thorough analysis of your competitors. Identify the reasons why customers are switching to those brands and analyze their strengths and weaknesses. Use this information to differentiate your brand and offer unique value propositions that address customer needs and concerns.
- Enhance product offering: Assess the insights to understand which features or aspects of your product are driving customers to switch brands. Work on enhancing those features or developing new offerings that align with customer preferences. By continuously improving your product, you can retain existing customers and attract new ones.
- Develop targeted marketing campaigns: Leverage brand switching insights to create targeted marketing campaigns that highlight the unique value and benefits your brand offers compared to competitors. Focus on addressing the specific pain points or concerns that customers have when switching brands, emphasizing why your brand is the better choice.
- Retention strategies: Implement strategies to retain existing customers who may be considering brand switching. Offer loyalty programs, exclusive discounts, or personalized offers to incentivize them to stay with your brand. Strengthen the relationship with your customers through ongoing engagement and communication.