Tough to keep more than 70% of last year’s buyers

Posted by Oliver Koll on Feb 28, 2017

Consumer churn is a major challenge for FMCG brands: The average top ten brand loses about half of its buyers from year to year. Comparing brand churn for 1000s of brands in 13 countries and 80 categories shows that for large brands in frequently purchased categories (more than ten occasions per year) there is a pretty good fit between size and churn. For example, a 40% penetration brand in a frequently purchased category is very likely to lose about 40% of its buyers. Not surprisingly, losses are worse for smaller brands and in less frequently purchased categories (less than five occasions per year).
What is noteworthy: Not a single brand in the database keeps more than 80% of its buyers from year to year.