CPG loyalty and the pandemic
Is loyalty CHANGING FOREVER due to the pandemic? Hmm.
Let’s see what NCSolutions (formerly Nielsen-Catalina) found in their latest data from the past few months of U.S. grocery buying.
First of all, after a spike in Mid-March, grocery sales are consistently up 34%. I can relate: with everyone home all the time, we’re making up for school meals, office meals, nights out, and whatnot at home now.
Brands that are growing are all doing it by acquiring new customers, not by getting heavy buyers to buy more. But that’s what 50 years of brand science would’ve predicted.
The pandemic accelerated some trends: growing brands are growing share a bit faster, shrinking brands are losing share more. But everyone’s up in volume (wohoo!).
There’s a bump in premium & ‘comfort’ brand sales, as people stuck at home are celebrating Treat Yo Self Day more. (H/t to Parks and Recreation.) Time will tell if this will result in actual switching, or if this is just a change of pace & we’ll all go back to our usual stuff. (Personally I won’t be sticking with vegan mayo. Blecch.)
But otherwise, is the pandemic changing brand loyalty forever? Doesn’t look like it.
Oh, and PS: advertising works. Still. And creative accounts for half of its impact. Still. So don’t go dark! It’ll set you back.