When launching a new product, many brand owners believe ‘it’ll be love at first bite’. And the majority of the work is done once a consumer makes a purchase. So if they go on to make a couple of purchases that consumer’s loyal. Right?
Wrong. The truth is of course very different – and there’s a long way to go…
Nielsen data shows that, on average, it takes about seven repeat purchases for a consumer to become a truly loyal buyer and the brand to form part of the repertoire of purchasing.
And the fall out rate at the early stages is high. Between the trial purchase and the first repeat purchase, a brand will lose approximately half of its buyers. From the first repeat purchase to the second, the brand will again lose half of the remaining buyers.
And so it goes on until around the eighth purchase.
It’s generally accepted that if a product isn’t delivering a strong and unique product experience and a clear differentiated purpose it’ll be forgotten – and won’t make it to that eighth purchase.
So a more “me too” product can be successful – if the brand really engages with the consumer. Here, how ‘The Brand’ (e.g. their personality, tone of voice, one to one interactions, customer service) interacts with their customers at every touchpoint – becomes the distinct point of difference that leads to success.
But the road is long. And, given the proliferation of new entrants, promotions, and consumer interest in trying something new – the perils of being one of the 90% of launches that will fail is ever present.
Source: Setting the record straight on innovation failure
2018 the Nielsen Company