In order to learn more about how brands grow, we contacted Global Analytics and Insight Director Paul Murphy and kindly asked him to share his knowledge on this field. During our talk, Paul covers three interesting points no brand wants to miss: how brands grow, what would their to-do list look like, and which questions remain yet unanswered on this subject.
"The biggest brands are those who get the most consumers to buy them more frequently."
As a brand, in growth or decline times, there are two things you should be looking at. One of them is the number of buyers you have and the other one is how often they are buying your products. Whereas the biggest brands of the world have the greatest numbers of buyers and purchasing frequency, the smaller ones have less people buying them and they are doing it less often.
"The idea that people are more or less loyal to brands does not really exist as much as people think".
Another thing to take into account, Paul notes, is that the most popular way anyone buys a brand is just once a year. Consumers are not that loyal to brands as people believe, so the key here is getting consumers to start purchasing your products.
"Everyone spends far too long on looking at the people that already buy them."
When asked about where should brands wanting to grow should look at, Paul has a clear opinion: at the people that don't buy them yet. As he explains, the next step is to find out why they are not buying the brand and then think about solutions for that. The answer to this last question is innovation.
"It is the innovation that lands on the store the one that people see."
From a marketing point of view, Paul Murphy explains that there are two aspects to control. First, that people are able to find in the store what they see on the Internet. And second, advertising in all its ways – consumers know a brand when they have seen it through time and people around them buy it.
"When you ask people what their favourite brand is, they will talk about brands you, I and everyone knows."
Paul Murphy gives a last but not least piece of advice to brands: brands need to remind people that they exist and that they offer them relevant things.
"Even if it might seem embarrassing, you have to tell people that you are there and that you are relevant."
Despite all we know about how brands grow, there are still some questions that have not been answered yet. Paul Murphy points out some of the most relevant ones are related to budget planning: how much money to spend into personalisation versus mass targeting, or how much to invest into in-store presence and range.
Watch the full interview below. If you are interested in knowing more about brands or want to discover how we can help you doing it, get in touch.