by Bjorn Vandemeulebroucke
Globally, within the last year, approximately 70% of The Insiders’ activations launched news brands. These clients mainly sought to bring new consumers to their brands or in some cases to a whole new category, as it was in a recent case with a robot vacuum brand. Leading marketers seeking to grow market share choose to partner with The Insiders because of our track record in winning over consumers.
The Cost to Bring a New Consumer to Your Brand
When done right, bringing a new consumer from a competing brand can be cost-effective and carry long-term rewards. The last 30 brand activations we ran for a leading global CPG company, exclusively targeting consumers from competing brands, averaged out a trial and repeat rate of 15%, along with consumers purchasing in average 12 items per year, under an affordable cost per consumer converted of only $25 USD (IPSOS).
Overall, our benchmark in sales lift from new consumers ranges from 9% to 33%, depending on the industry and category. Complementary, our activations yield an average of 18% consumers converted from competing brands, amounting to an average ROI of 2.3 (IRI). Drawing from our experience, there are specific tactics sure to help any brand grow market share by converting consumers from competitors.
How to Convert Consumers from Competing Brands
Convey Your Value – Obviously, you need to clearly articulate your brand differentiators to attract your competitors’ consumers, but you will never be effective in doing that if you lack consumer insight. Be strategic, you need more than transactional data, you need to understand what makes your target consumer tick. This will necessarily require qualitative data as well, so start by asking. Survey your target to understand why they buy from the competition and what problems competitors are yet to solve for them. Then, finetune your unique selling proposition, and you will be well-positioned to convey your brand benefits to your consumer. Hint: Do not focus on price if you have long-term brand equity goals.
Form Brand Advocates – Invest in consumer education to form ambassadors. Then, tap on your brand ambassadors to explain in their authentic voices what sets your brand apart. Intensively engage consumers with the right profile to become brand ambassadors and they will be eager to recommend your brand. Ambassadors are keen on engaging peer-consumers in face-to-face conversations about why they swear by your brand. Ambassadors are also devoted to creating all types of user-generated content—social posts, reviews, photos, videos—sharing their experiences with your brand and swaying shoppers to try your product.
Nurture Brand Loyalty – Instigate a sense of belonging to create emotional connections with your target, increasing the likelihood of their loyalty to your brand. Invite your target consumers to be part of an exceptional community. An effective way of doing that is by communicating that your brand stands up for something your target wants to be known for. Don’t just sell computers, commit to tech innovation, Apple. Don’t just sell dog food, stand up for dog rescue, Chewy. Don’t just sell makeup, support breast cancer research, Estée Lauder. Elevate the value of your brand by building a consumer tribe that cares for a social cause. It both adds value to your brand and allow you to cultivate engagement with your target.
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