The value of customer loyalty for CPG brands

Customer loyalty in Consumer Packaged Goods (CPG) is more important than in other, more durable goods.

Building brand loyalty with a durable product is easy because the product won't expire or be used up by next month. It'll be around for a long time before its replaced so the customer will get a lot of usage out of it (economic utility).

CPG products on the other hand might be consumed in a matter of days and often the packaging is thrown away or recycled. That means if you haven't captured the customer's loyalty they might not buy from you next time. They might not even remember your name and just buy the cheapest/most-available/most-interesting when it comes time to reorder.

Cultivating and keeping that brand loyalty is critical for CPG brands. You can use coupons/discounts, welcome campaigns, prominent placements, or anything else to influence loyalty. You can't just write off loyalty as out of your control.

To measure your customer loyalty, you'll want to compare the Repeat Purchase Rates. I'd recommend watching your overall rate, the rate for different customer cohorts, and the rate for each product. Each will tell you a different story about loyalty.

Repeat Customer Insights will measure all of those for you, along with dozens of other metrics. It comes with a free trial or a demo so you can see how it works.

Eric Davis

Discover where your best customers come from

Going beyond simple attribution, Repeat Customer Insights lets you analyze and segment your customers by who first sent that customer your way.
This will let you find the best sources of long-term customers, not just anyone who orders.

Learn more

Topics: Customer loyalty

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