Are There Any Niche Brands with Crazy Loyalty?

And if so, is this a common, normal thing in the world?

I mean, we hear about it all the time. There’s a pervasive story, a broad belief — dare I say an archetype — of the small, niche brand with the super-loyal customers. 

It seems to be extra extra pervasive in the natural foods world. Not sure why. Maybe because health nuts are also supposed to be brand nuts?

But there’s a problem with the story: the data don’t back it up.

In this case, big kombucha brands tend to have more buyers AND more loyalty.

Image with text: Big Brands have more buyers and more loyalty. Even Kombucha.

With graph showing reach and penetration (double jeopardy) for a several kombucha brands.

GT’s, for instance, is like Nikola Jokić in the playoffs: dominant share, the most buyers, and category-high loyalty. Another triple double for the big brand.

On the other end, you’ve got, well, every brand outside the top 7. Small market share, few buyers, low loyalty. 

And in the middle, the other 6 brands generally follow the pattern. A pattern called the Law of Double Jeopardy.

Well, except for Brew Doctor. It’s small but has fairly high loyalty. Still not as much as GT’s, but way higher than you’d expect given its size. As they say in boxing, they’re punching above their weight class.

But while Brew Doctor might indeed be a small brand with unusually-high repeat purchase, it’s a rare bird. (And we don’t know why: are they selling where GT’s is shut out? Did they lock up Chipotle as a customer? Do you get a Power Ball ticket with each bottle? Maybe it's really distribution and not "brand love" that's driving the high repeat.) 

So some lessons:

1. Assume your category follows the Law of Double Jeopardy too.

2. Assume there are no niche or small brands with crazy loyalty in your category. 

3. When comparing brands in a category, always always always control for weight class (market share).

4. Look for brands that are deviating from the pattern: who’s punching above their weight? Who’s lagging? Find out why.

PS: Want to bring brand science to your marketing team? Call Me Maybe.