Small + infrequent = LIGHT

Posted by Oliver Koll on Jan 29, 2016

1_2Buyers_figureThe smaller your brand and the lower the purchase frequency of your category the more you rely on light brand buyers. This is the result of a recent analysis within our BG20 database including 1,500 brands from the US and the UK across 79 FMCG categories.

For example, take a frequently bought category like yoghurt: Light shoppers (1&2 time buyers) contribute only 19% to the total sales of a large brand, but about one third for a smaller competitor. The same general pattern applies to toothpastes, but given the lower purchase frequency of the category the contribution is substantially higher. For a large brand, 1&2 time buyers contribute 78% of the total sales, whereas light buyers are responsible for 87% of sales for a smaller toothpaste brand.

While heavy brand buyers are certainly more valuable individually, most brands simply don’t have many of them.