Most Purchases Are Made While Shopping Around, Not From Loyalty

Do consumers tend to make the same brand choices time after time, or do mostly shop around with successive purchases?

Recent research from McKinsey comes to a troubling conclusion:

 

Few purchases are loyalty-driven, and the myriad new ways for consumers to judge brands and comparison shop doesn’t seem poised to change that.

 

To arrive at this conclusion, McKinsey dug into its CDJ database, which it says covers more than 125,000 consumers shopping for more than 350 brands.

After analyzing the data, it found that of 30 categories, just 3 were primarily loyalty-driven.

  1. Mobile carriers, as it emerges, stand to benefit most from brand loyalty: 81% of purchases in this category were driven by brand loyalty as opposed to shopping around.
  2. Not far behind, about three-quarters (76%) of purchases in the auto insurance category are loyalty-driven, per the report. That’s corroborated by recent research indicating that few auto insurance customers actively seek out better deals when their policy is up for renewal.
  3. Finally, the only other category of the 30 analyzed that was found to be loyalty driven was investments (69%).

Once you have a plan, you stick to it, it seems…

 

By contrast, most categories are skewed just as heavily – if not more – towards shopping than loyalty. The most competitive categories of all are:

  • shoe retail and cosmetics, with 97% and 96% of purchases, respectively, the result of shopping around.

 

The vast majority of consumer electronics purchases also appear to be from shopping around rather than sticking with the same brand choices: personal computers (91%), laptops (88%) and tablets (82%) each skewed heavily towards shopping around.

 

Loyalty is “Ephemeral”

The researchers delved further into the data to further analyze buying behavior, this time looking specifically at the 27 categories in which more purchases were the result of shopping around than loyalty.

Across these categories, an average of 87% of consumers shopped around, while 13% could be considered loyalists. Among those who shopped around, only one-third (33%) ended up remaining with the incumbent brand, while the remaining two-thirds were “tempted” away to another brand.

Overall, consumers’ purchase behavior across those 27 shopping-driven categories broke down as follows:

  • 13% – loyalists, who didn’t shop around;
  • 29% – shopped around, but ultimately stuck with the incumbent brand; and
  • 58% – switched to a different brand.

 

Finally, there’s an important note to the data:

It’s extremely important for brands to be top-of-mind. The analysts discovered that brands in the “initial consideration set” were twice as likely to be ultimately purchased as those brands that were considered later in the purchase journey. Overall, almost 7 in 10 brands purchased by those who switched were part of those consumers’ initial consideration set.

 

Consider checking out my loyalty card app for the company 7Leaves Cafe.

The app is overall very simple, but is relevant to the company as it saves them money by having them not print rewards/loyalty cards and buy stamps/ink.

Twitter Digg Delicious Stumbleupon Technorati Facebook Email

81 Responses to “Most Purchases Are Made While Shopping Around, Not From Loyalty”

  1. Everything is very open with a very clear description of the issues.
    It was definitely informative. Your website is very useful.
    Thanks for sharing!

  2. I like it when folks come together and share ideas. Great blog,
    keep it up!

  3. Greate post. Keep writing such kind of info on your page.
    Im really impressed by your blog.
    Hi there, You’ve done a great job. I’ll certainly digg it and personally recommend to my friends.
    I am confident they’ll be benefited from this web site.

  4. Wonderful website you have here but I was wondering if you knew of any
    discussion boards that cover the same topics discussed in this article?

    I’d really love to be a part of community where I can get feedback from other experienced people that share the same interest.
    If you have any recommendations, please let me know. Cheers!

  5. Hey there! Someone in my Facebook group shared this website
    with us so I came to look it over. I’m definitely
    enjoying the information. I’m book-marking and will
    be tweeting this to my followers! Excellent blog and excellent style and design.

  6. I couldn’t resist commenting. Perfectly written!

  7. I genuinely enjoy examining on this website, it holds excellent content. “The living is a species of the dead and not a very attractive one.” by Friedrich Wilhelm Nietzsche.

  8. I do not know whether it’s just me or if perhaps everybody else encountering problems with your blog.

    It appears like some of the text within your posts are running off the
    screen. Can someone else please comment and let me know if this
    is happening to them too? This might be a problem with my web browser because I’ve had this happen previously.
    Many thanks

  9. I was recommended this website by my cousin. I’m not sure whether this post is written by him as nobody else know such detailed about my difficulty. You are wonderful! Thanks!

  10. When someone writes an paragraph he/she retains the idea of a user in his/her brain that how a user can be aware
    of it. So that’s why this article is great.

    Thanks!

  11. Hey I am so grateful I found your site, I really found you by error, while I was looking on Google for something else, Regardless I
    am here now and would just like to say thanks for a tremendous post and a
    all round entertaining blog (I also love the theme/design), I don’t have time to read it all at the moment
    but I have book-marked it and also included your RSS feeds, so when I have time I will be back
    to read much more, Please do keep up the fantastic work.

  12. You made some nice points there. I did a search on the subject matter and found mainly people will go along with with your blog.

  13. Wow! Thank you! I continually needed to write on my site something like that. Can I implement a part of your post to my site?

  14. Very good info. Lucky me I found your website by accident (stumbleupon).

    I have saved as a favorite for later!

  15. Julie – This is the very first 4th of July inside my daily life, that I contain not expended at the shore! The good thing is, I stocked up upon sparklers yesterday and I am well prepared towards embrace the historical past. Make it possible for THE Background Start off!

  16. People new music really is transformational. Due for the form terms. Perspective yourself at my beloved Competition.Levi LandisExecutive DirectorPhiladelphia Folksong Societysponsor of Philadelphia Folks Pageant

  17. Ive by no means read anything like this just before. So nice to locate somebody with some original thoughts on this topic, really thank you for beginning this up. this web-site is something that’s needed on the net, an individual having a small originality. useful job for bringing one thing new to the web!

  18. hey there and thanks to your info – I’ve definitely picked up something new from right here. I did then again expertise a few technical points using this site, since I experienced to reload the website lots of times prior to I may just get it to load properly. I have been considering if your hosting is OK? No longer that I am complaining, but sluggish loading cases instances will very frequently impact your placement in google and could injury your quality score if ads with Adwords. Anyway I’m adding this RSS to my e-mail and can look out for a lot extra of your respective fascinating content. Make sure you update this again very soon..

  19. Hi Dear, are you actually visiting this site on a regular
    basis, if so then you will definitely get good know-how.

  20. Good day! This is my 1st comment here so I just wanted
    to give a quick shout out and tell you I genuinely enjoy
    reading through your blog posts. Can you suggest any other blogs/websites/forums
    that deal with the same subjects? Thanks a ton!

  21. Where Can I Buy Cialis Professional [url=http://cialtobuy.com ]cialis price[/url] Rx Health Drugs Viagra
    Can You Get High On Cephalexin
    Cialis Billig Auf Rechnung cialis Acheter Propecia France

  22. Cephalexin Stability [url=http://cialtobuy.com ]cialis[/url] Kamagra Sildenafil 100 Mg
    Where To Buy Silagra Cipla Pharmaceuticals Sildenafil
    Cialis Original Generico cialis Cheap Cialis Online Canadian P

  23. I am curious to find out what blog system you happen to be working with? I’m having some small security issues with my latest site and I would like to find something more secure. Do you have any recommendations?

  24. You could definitely see your enthusiasm in the work you write. The world hopes for more passionate writers like you who are not afraid to say how they believe. Always go after your heart.

  25. Thank you for the good writeup. It in fact was a amusement account it.
    Look advanced to more added agreeable from you! By the way, how can we communicate?

  26. Wow that was strange. I just wrote an extremely long comment but after I clicked
    submit my comment didn’t show up. Grrrr… well I’m not writing
    all that over again. Anyways, just wanted to say fantastic blog!

  27. Pretty nice post. I simply stumbled upon your blog and wanted to mention that I’ve truly loved browsing your blog posts.
    After all I will be subscribing on your rss
    feed and I am hoping you write again very soon!

  28. You really make it seem so easy with your presentation but I find
    this matter to be actually something which I think I would never
    understand. It seems too complex and very broad for me.

    I am looking forward for your next post, I’ll try to
    get the hang of it!

  29. Great web site. A lot of helpful information here.
    I’m sending it to several pals ans also sharing in delicious.

    And naturally, thanks for your sweat!

  30. Hey There. I discovered your blog the use of msn. That is a very
    smartly written article. I’ll make sure to bookmark it and come back to read
    extra of your helpful info. Thank you for the post.

    I’ll certainly comeback.

  31. What a stuff of un-ambiguity and preserveness of precious knowledge concerning unpredicted
    emotions.

  32. Thank you for writing this, I bookmarked this web page. I am additionally in search of facts about lic of india login, have you any idea exactly where I might find one thing such as this? I will be back in a little while!

  33. Thank you for sharing your thoughts. I really appreciate your efforts and I am waiting for your next write ups thanks once again.

  34. I really like your blog.. very nice colors & theme.
    Did you create this website yourself or did you hire someone to do it
    for you? Plz respond as I’m looking to create my own blog and would like to find out where u got this from.
    appreciate it

  35. Hi there. I recently noticed this amazing site and I certainly enjoy it. I love to chat about aptoide store at times. Good to be around, thanks a lot!

  36. Hello! I just wanted to ask if you ever have any issues
    with hackers? My last blog (wordpress) was hacked and I ended up losing a few months
    of hard work due to no data backup. Do you have any solutions to prevent hackers?

  37. Hello there, You’ve done an incredible job. I will certainly digg it and personally recommend to my friends. I’m sure they will be benefited from this web site.

  38. What i don’t realize is actually how you are now not really much more well-favored than you might be now. You are very intelligent. You already know therefore considerably with regards to this matter, made me for my part consider it from numerous numerous angles. Its like men and women are not fascinated until it’s something to do with Lady gaga! Your own stuffs nice. At all times handle it up!

  39. I used to be suggested this blog via my cousin. I am not positive whether or not this post is written through him as nobody else recognize such certain about my trouble. You’re amazing! Thanks!

  40. Magnificent web site. A lot of helpful information here.
    I’m sending it to several buddies ans also sharing in delicious.
    And naturally, thank you for your sweat!

  41. Fascinating blog! Is your theme custom made or did you download it from somewhere?
    A theme like yours with a few simple tweeks would really make my blog
    stand out. Please let me know where you got your theme.
    With thanks

  42. Hello everybody, here every one is sharing these experience, so
    it’s pleasant to read this weblog, and I used to go to see this webpage
    everyday.

  43. Wow, superb blog layout! How long have you been blogging for?
    you make blogging look easy. The overall look of your web site is magnificent, let alone the content!

  44. After exploring a number of the articles on your site,
    I seriously appreciate your way of blogging. I bookmarked
    it to my bookmark webpage list and will be checking back in the near future.
    Please check out my website as well and let me know your opinion.

  45. Wonderful, what a blog it is! This weblog gives helpful information to us, keep it
    up.

  46. It’s very effortless to find out any matter on web as compared to
    books, as I found this article at this web page.

  47. Howdy! I know this is kinda off topic however
    I’d figured I’d ask. Would you be interested in trading links or
    maybe guest authoring a blog post or vice-versa? My site
    covers a lot of the same topics as yours and I believe we could greatly
    benefit from each other. If you might be interested feel free to
    shoot me an e-mail. I look forward to hearing from you!
    Terrific blog by the way!

  48. I truly love your website.. Pleasant colors & theme. Did you build this site yourself?
    Please reply back as I’m looking to create my own personal website and want to know where you got this from or just what the theme is named.

    Thank you!

  49. With havin so much content do you ever run into any problems of
    plagorism or copyright violation? My blog has a lot of completely unique content I’ve either created myself or
    outsourced but it seems a lot of it is popping it up all over the web
    without my permission. Do you know any ways to help protect against content from being
    stolen? I’d really appreciate it.

  50. There is definately a great deal to learn about this issue.

    I love all of the points you made.

  51. Hey! I could have sworn I’ve been to this website before but after reading through some of the post
    I realized it’s new to me. Nonetheless, I’m definitely
    glad I found it and I’ll be book-marking and
    checking back often!

  52. This is the right blog for everyone who
    really wants to understand this topic. You realize a whole lot its almost tough to argue with you (not that I
    really will need to…HaHa). You certainly put a new spin on a topic
    that’s been written about for years. Great stuff, just great!

  53. Hey there! I just wanted to ask if you ever have any issues with hackers?
    My last blog (wordpress) was hacked and I ended up losing months of hard work due to no backup.
    Do you have any methods to prevent hackers?

  54. Hello, its fastidious post on the topic of media print, we
    all be aware of media is a fantastic source of information.

  55. Wow, incredible blog layout! How long have you been blogging for?
    you make blogging look easy. The overall look of your website is excellent, as well as the content!

  56. Aw, this was an extremely good post. Taking a few minutes and actual effort
    to make a really good article… but what can I say… I
    procrastinate a lot and don’t manage to get nearly anything done.

  57. Greetings from California! I’m bored to tears at work so I decided to check out your website on my iphone during lunch break.
    I really like the info you present here and can’t wait to take a
    look when I get home. I’m shocked at how fast your blog loaded on my cell phone
    .. I’m not even using WIFI, just 3G .. Anyhow, great
    site!

  58. hello there and thank you for your info – I have definitely picked up anything new from right here.

    I did however expertise a few technical issues using this web site, as I experienced to reload the website lots of times previous to I could get it to
    load properly. I had been wondering if your web
    hosting is OK? Not that I am complaining, but sluggish loading instances times will very frequently affect your placement in google and could damage your high quality score if advertising and marketing with Adwords.
    Anyway I’m adding this RSS to my email and
    could look out for a lot more of your respective fascinating content.
    Ensure that you update this again very soon.

  59. Appreciate the recommendation. Will try it out.

  60. Hi there, after reading this awesome article i am as well glad to share
    my knowledge here with colleagues.

  61. I’m amazed, I have to admit. Rarely do I encounter a blog that’s both equally educative
    and amusing, and let me tell you, you have hit the nail on the head.

    The issue is an issue that not enough men and women are speaking intelligently about.
    I am very happy I found this during my hunt for something regarding this.

  62. Hi to all, the contents present at this site are in fact amazing
    for people knowledge, well, keep up the nice work fellows.

  63. I think what you posted made a lot of sense. But,
    what about this? what if you typed a catchier post title?
    I ain’t suggesting your content isn’t solid., however
    what if you added something that grabbed a person’s attention? I mean Most Purchases Are Made While Shopping Around, Not From Loyalty ·
    Nerd Or Geek is a little boring. You should peek at Yahoo’s front
    page and see how they create post titles to get viewers interested.
    You might add a video or a related pic or two to grab readers interested about everything’ve written. In my
    opinion, it could bring your posts a little livelier.

  64. Hello there! This post could not be written any better!
    Reading this post reminds me of my old room mate!

    He always kept talking about this. I will forward this article to him.
    Pretty sure he will have a good read. Many thanks for sharing!

  65. Hello, I do think your blog could be having internet
    browser compatibility issues. Whenever I take
    a look at your blog in Safari, it looks fine however, if opening in Internet Explorer, it’s got some overlapping issues.
    I merely wanted to provide you with a quick heads up!

    Aside from that, great site!

  66. Hi there everybody, here every person is sharing these
    familiarity, so it’s fastidious to read this weblog, and I
    used to pay a quick visit this weblog all the time.

  67. Everything is very open with a precise explanation of the challenges.
    It was definitely informative. Your website is very useful.
    Thank you for sharing!

  68. Hmm it seems like your website ate my first comment (it was super long) so I
    guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog.
    I too am an aspiring blog blogger but I’m still new to the whole thing.
    Do you have any suggestions for rookie blog writers?
    I’d definitely appreciate it.

  69. We’re a gaggle of volunteers and opening a new scheme in our community.

    Your website provided us with helpful information to
    work on. You have performed a formidable job and our entire community will
    be grateful to you.

  70. Hello There. I found your blog using msn. This is a very neatly written article. I will be sure to bookmark it and return to read extra of your useful information. Thanks for the post. I will certainly return.

  71. Hey! I just came across this site and I really love it. I want to discuss phone tracker at times. Great to be around, appreciate it!

  72. Hi there, i read your blog occasionally and i own a similar one
    and i was just curious if you get a lot of spam remarks?
    If so how do you protect against it, any plugin or anything you can recommend?
    I get so much lately it’s driving me insane so any assistance is very
    much appreciated.

  73. Wonderful beat ! I wish to apprentice while you amend your web site, how can i subscribe for a weblog website? The account aided me a appropriate deal. I were a little bit familiar of this your broadcast offered vivid clear idea

  74. Greetings from Florida! I’m bored to death at work so I decided
    to check out your blog on my iphone during lunch break.

    I really like the info you present here and can’t
    wait to take a look when I get home. I’m surprised at how fast your blog loaded on my mobile ..
    I’m not even using WIFI, just 3G .. Anyways, amazing site!

  75. This is very interesting, You’re a very skilled blogger.

    I have joined your rss feed and look forward
    to seeking more of your excellent post. Also, I have shared your site in my social networks!

  76. Howdy! Do you know if they make any plugins to assist with SEO?
    I’m trying to get my blog to rank for some targeted keywords but I’m
    not seeing very good success. If you know of any please share.
    Many thanks!

  77. This is a topic that’s near to my heart…

    Many thanks! Exactly where are your contact details though?

  78. Awsome article and straight to the point. I don’t know if this is in fact the best place to ask but do you people have any ideea where to employ some professional writers? Thx 🙂