Our final edition of 2024 focuses on yearly changes in reach and frequency for winning vs losing brands since 2020
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Winners gain buyers – or are more successful in limiting churn
In the past few years finding more buyers for your brand was at some times easy and at other times difficult. In 2020, buyer numbers increased for a majority of brands (Covid-19 effect of more in-home consumption), while in 2021, 2022, and 2023 a majority of brands experienced a decline (post Covid-19 normalization, followed by inflationary pressure).
However, the winners over the past four years consistently beat the losers: they outperformed them in attracting buyers in 2020 and were much more effective in stopping the bleeding since.
Winners also managed to limit declines in frequency
In line with buyer numbers, frequency of buying also increased (a bit) for the average brand in 2020 and declined since. While the relationship between share and frequency change is less pronounced than its relationship with buyer numbers the most winning brands again stand out.
Let’s first focus only on buyers that purchase the brand in two consecutive years (i.e. retained buyers). For this group, winning brands managed to increase frequency of buying in 2020 more than losers and saw frequency decline much less than brands losing share in the subsequent years. Share-losing brands on average experienced a cumulative loss of almost one purchase occasion amongst their retained buyers over these four years.
New versus lost buyers and their buying frequency
When examining the respective purchase frequencies of new and lost buyers of a brand, we again find a remarkable link with winning or losing share. New buyers of the most winning brands (e.g. buyers that bought in 2020, but not in 2019) buy these brands more often compared to the buyers that these brands have lost over the previous year (e.g. buyers that bought in 2019, but not in 2020). Amongst the most winning brands, this difference amounts to 0.1 times more often in 2020 and 0.01 times more often in 2023. Amongst the losing brands, that difference is negative: buyers won buy less often than buyers lost.
