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Brand loyalty declines in Canada

News, 22 March 2016

TORONTO: Over 40% of Canadian shoppers believe they are less loyal to consumer packaged goods brands than was the case in the past, a study has revealed.

BrandSpark, the insights group, polled 45,000 consumers regarding their attitudes towards products in 133 different categories.

And 45% of the research participants agreed their loyalty to specific brands has declined – a trend posing major challenges to the marketing industry.

"The fact that Canadians are becoming less brand loyal makes it more important for marketers to remind shoppers of the trusted relationship they and other shoppers enjoyed with the brand's products," said Robert Levy, President/CEO, BrandSpark International.

Elsewhere, the company reported that 66% of Canadians will try new offerings introduced by the brands that they trust the most.

Fully 74% of interviewees would also purchase items enjoying this exalted status when they are on sale instead of choosing generic or own-label alternatives.

Consistently providing positive experiences is one of the vital factors behind building such trust. Innovation played an important role for newer entrants hoping to achieve this position, too.

"Brands need to continue to provide consumers with reasons to believe in the superior performance or value of their products, and increasingly that is coming from the recommendation of other consumers," said Levy.

Responding to problems quickly and transparently also has a significant influence on popular attitudes, as does being "fair and ethical" – a description defined in many ways, from assisting good causes to charging reasonable prices.

"Today's shoppers are looking for content and information that is authentic and relevant to them, at their life stage and mindset," Levy added.

"Targeted marketing with targeted messaging effectively addresses the unique concerns of different shoppers and increases their interest and confidence in a brand.

"Speaking to consumers in a way that resonates with their mindset helps to create the emotional response that builds a foundation for a deeper level of trust."

Data sourced from BrandSparks; additional content by Warc staff