Brand switching: what it is and how to measure it

You’ve probably heard that it costs five to seven times as much to gain new customers as it does to keep your existing ones. And it’s frequently said that 60–70%, on average, of business sales are attributed to existing customers. That’s why a form of consumer behaviour called brand switching can be detrimental to your business, especially if it becomes a trend.

A thorough understanding of brand switching and consumer sentiment is vital if you want to avoid the above problems, so we’re taking a closer look at this consumer behaviour and how you can get ahead of it.

Brand switching is a change in consumer buying habits in which long-term customers choose to switch to another brand. You can think of it as the opposite of brand loyalty, in which the customer chooses your brand above all others. Brand switching occurs most frequently among customers who generally make their purchases based on the brand. It is usually seen during times of economic difficulties, either individual or market-wide. 

A simple example of brand switching is a customer who has purchased the same brand of laundry detergent for 10 years suddenly deciding to start buying a different brand.

Brand switching trends can negatively affect your revenue and profit streams. It’s critical to understand why consumers choose to switch brands so that you can promote customer loyalty for your brand and prevent losses in sales and market share. 

There are four main reasons for customers switching brands. Let’s look at each one and discuss how you can avoid it.

Loyal customers will continue to buy your brand regardless of price – up to a point. Let’s consider another brand switching example: Imagine that your customer doing their supermarket shopping is in the pasta sauce aisle. This customer always buys Brand A and they trust the brand to provide quality and value. Today, however, they notice that Brand A is significantly more expensive than other brands. 

There are dozens of options on the shelves, including several less expensive brands, to choose from. Brand B offers sauces that are very similar to Brand A but at a lower price. The customer tries it and likes it, so they buy Brand B from that point forward.

Customers may switch based on affordability and perceived value at a given price. What can you do to avoid brand switching due to price? Start with some market research. Examine your target market and answer these questions:

Don’t stop there. Once you’ve answered those three questions, it’s time for some competitor research:

With that information, as well as consideration of market conditions, you can set an effective pricing strategy in motion that will discourage brand switching.

When a brand has been around for a long time, it can start to feel dated. People may start to experience brand fatigue and look for something new. They’re seeking something that feels new and fresh, and there are plenty of competitors to choose from. 

They may also be overwhelmed by your constant innovation and offerings beyond what your brand is known for, so you need to make sure you strike the right balance. 

Brand image is an important factor for keeping customers interested in your brand. A good brand image builds trust, equity and credibility. It also allows for growth. 

You can discover more and improve your brand image by:

You’ll need to keep a close eye on your brand health. Our Brand Tracker is a comprehensive solution for monitoring brand health. It will, among other things, help boost your brand awareness and improve your brand perception.

Similar to the effects of brand fatigue, if your main product offering lacks innovation when other brands are leaping forward, customers will brand-switch. Nobody wants a product that seems dated: they want the newest, best product out there. That’s one reason why iPhones seem to gain more customers via brand switching every time they release a phone model with fresh, groundbreaking features.

Again, to avoid this happening with your products, you need to start with research to answer these questions:

Use the collected feedback to make informed business decisions about upgrades, improvements and additions to your products.

Customer service can make or break a brand. It only takes one bad service experience for a customer to switch brands. And when they have what they consider a bad experience, customers are very vocal about it in reviews, on social media and through word of mouth. 

Poor customer service can often lead to poor brand sentiment, which leads to switching. Good customer service requires:

The key to getting ahead of brand switching is market research and brand switching analysis. SurveyMonkey has the market research tools you need to assess how your customers feel about your brand and whether they’re loyal or likely to brand switch.

To conduct your brand switching analysis:

Customers engage in brand switching for a variety of reasons. The only way to find out where your brand stands is to ask your customers for their insights. SurveyMonkey offers several market research solutions to help you learn about your customers, competitors and brand performance.

The SurveyMonkey Brand Tracker is a unique tool for spotting trends, monitoring key metrics and providing insights into your brand health. Don’t let brand switching happen to you. Sign up today!