The verdict: what’s the best loyalty driver?
It’s not a case of ‘either/or’!
There is no discrepancy between frequency and basket size. The winning growth formula belongs to the brands that can conquer both, in the micro and macro realms.
On a micro level of brands and categories, the aim is to grow frequency by catering to different shopper needs. The important thing is to be chosen on more trips. A well-structured portfolio can grow your brand’s presence across various trips.
On a macro level of sectors and the overall FMCG market, the goal is to grow basket size by securing a spot on a shopper’s current trip. As consumers reduce their purchase frequency, every trip becomes ever more vital.
When we say that a brand should improve frequency, we must remember that a shopper won’t necessarily make a separate trip to buy the brand again. If they’re still making fewer trips, you need to ensure your brand is chosen on more of the trips they do make. This means that the brand’s interaction with other FMCG items is crucial.
To lift both frequency and basket size, you need to make a strong case to the shopper for why it’s worth purchasing the brand more often, while motivating them to increase their FMCG basket size and spend to include your brand.
MICRO (Brand/Category): Growing frequency by catering to different shopper needs.
MACRO (Sector/FMCG): Growing basket size by securing a spot on shopper’s current trip.
From insight to action
This report has been created to help brands understand the shopper measures that are continuously tracked by Worldpanel, and how they can empower brands to take action to drive growth.
Identifying changes in shopper measures is just the beginning. What comes next is the definition of key action points to achieve shopper conversion – enhancing a brand’s capability to ‘close the deal’.
At Worldpanel, we’ve developed a Book of Conversion to educate marketers on the seven core principles of converting a shopper in Malaysia’s highly competitive FMCG landscape.
Brands that practice these seven principles consistently will stay a step ahead of their competitors. Contact us for more details.