NielsenIQ has released its first Most Valuable Shopper (MVS) study on Canadian consumers. This new consumer-driven report segments retail shoppers based on their allegiance to overall retail stores, allowing retailers to better understand consumer loyalty.
Of the over 15 million households in Canada, only 30 per cent are loyal to one retailer to satisfy their shopping needs, leaving almost 70 per cent of households available to convert to loyal shoppers. The new MVS study segments shoppers into three exclusive loyalty groups for each retailer: loyal consumers who spend over 50 per cent of their dollars at one retailer; almost loyal consumers who spend 25 to 50 per cent of their dollars with one retailer; and non-loyal consumers who spend less than 25 per cent of their dollars with one retailer.
“The ability to capture market share from already loyal consumers is a monumental challenge, and those who are already loyal represent the market share that is critical for retailers to retain,” says Jenny Mabley, vice president, consumer insights, NielsenIQ. “The growth opportunity lies in the non-loyal consumers who can be converted along the loyalty continuum to almost loyal or loyal consumers.”
In addition to the loyalty information, the MVS report provides splits of the shopper base by key retailers, demographic profiles of each shopper split, detailed information on where consumer segments are shopping and their leakage to competitive banners and category-specific insights and trip conversion. This comprehensive understanding of shopper behaviour paves the way for retailers and manufacturers to work together and drive growth.
“As Canadian consumers are only 30 per cent loyal to CPG retailers, there is tremendous room for growth,” says Julie Campitelli, director, consumer & shopper insights with NielsenIQ. “In order to reach full growth potential, retailers need to know what consumers are doing outside their stores. Understanding these shopper segments will enable retailers to extract consumer-driven insights to target and activate the group of shoppers that provide the most opportunity, while also understanding the loyal consumers who need to be protected.”
