Switching Sides
Embracing the Changes Demanded by Nudgeables
Predisposing the Nudgeables to your brand is where it starts. Getting that piece right is key if your brand is to grow penetration, the most important indicator of long-term brand growth.We have mapped how to find Nudgeables for any category and any market.
Our study reveals that, broadly speaking, shoppers have a 42% likelihood of switching to new brands. Conversely, brand support in the form of repeat purchases comes just 58% of the time. The likelihood of switching increases to 51% for Nudgeables globally. While this behaviour varies by category, it highlights a significant opportunity — targeting their inevitable switching behaviour can drive brand growth, even as private label products gain market share in many consumer goods categories.
Covering Brazil, Mexico, China, Great Britain, France and Spain, this analysis of consumers’ real purchase patterns and the quantification of their switching by household, category and country allows us to place each consumer on a proven scale that measures their likelihood to change brands. This scale reveals 'new space' where marketers can effectively change minds and capture new buyers.
By understanding where each consumer falls on this scale, marketers can tailor their strategies to target the sweet spot of those most receptive to brand influence and change.
The soft drink category below offers an example:
Their inherent proclivity for brand switching is at the centre of the Nudgeable narrative. This case study from Britain focuses on the performance of soft drink brands over five years. We found that 87 brands were experiencing penetration growth and within these, 77% had more than their fair share of Nudgeables showing their powerful impact on brand growth.
To illustrate this we will focus in on the top 6 medium sized brands in terms of 5-year average penetration growth – Costa, Monster, Red Bull, London Essence Co., Lipton Ice, and Rubicon. Concurrently, these brands reported significant over-representation of Nudgeables vs. their category.
Though these brands tend to over-perform with younger consumers, we see a similar trend running through most other consumer goods categories.
The study highlights a correlation between the five-year penetration growth and the five-year average percentage of Nudgeables for medium-sized soft drinks. This correlation suggests that brands with higher rates of Nudgeables in their fold tend to achieve better penetration growth over time.
