Consumer behavior and brand loyalty are the key to brand management. People usually follow a certain pattern when choosing or buying things. A good brand manager is one who knows the pulse of customers, understands their buying behavior and pattern, and is able to engage consumers to try their brand.
It is very true that in all markets there will be customers who are loyal to a particular brand and others who are not. Those who are not loyal to your brand will be loyal to other brands. Understanding which segment is loyal to your brand and which is not makes it easier for you to target specific brand promotional activities to attract non-loyal prospects to try your brand. The key to getting the response from this potential new segment is to seek greater participation through increased awareness.
Knowing in depth the customer’s purchasing pattern is the most important information for the brand manager’s strategy to increase market share and market penetration. There are many market research companies that have been researching and recording data on consumer behavior and buying patterns, especially in the consumer goods segment, for over fifty years. Data analysis based on actual purchasing patterns of registered consumers over multiple years gives us real insight into consumer behavior. This market research analysis is available and covers various segments as well as regions and countries. Consumer behavior is different in different countries. While people in the UK prefer to mail order and buy smaller quantities or numbers of items, US consumers prefer to buy items in bulk and store at home. Geographic distances and places of purchase also contribute to consumer behavior.
Data on consumer behavior alone will not be enough to make a decision regarding a brand. Knowing the pulse of the consumer means understanding much more about the market and buyers. While with most established brands you will find brand penetration to be stable, the same is not true for newer brands. Whenever a new brand is introduced or a promotional event takes place, consumers, while loyal to other brands, are likely to try the promotional item. The 80:20 rule is valid even in the case of consumer brand loyalty, that is, eighty percent of sales are made through twenty percent of brand loyal buyers. So the challenge is to ensure that the goal of the promotional event is to urge more and more consumers to engage with the brand on a trial basis and thus pave the way for more brand awareness. Brand managers then need to work at the next level to engage test consumers to become preferred consumers.
The advent of social networks has altered the purchasing behavior of consumers in general. Prospects and brand loyalists, as well as dissatisfied consumers of a brand, have instant access to the vast network where they can share, exchange information and experiences, as well as start discussions and form opinions. Brand managers have no choice but to learn about this platform and interact with customers through social media. This channel is a powerful tool for brand managers to use while building communities of support for the brand and interacting with prospects and users of the brand thus extending the relationship. However, the risks of negative publicity for the brand are also very high and brand managers must constantly monitor and interact with social media to avoid such interactions.