Loyal consumers break up with favorite brands

Consumers are dumping the brands they once adored ... and opting for flings with lesser-known products ranging from laundry detergent to food.

In 2007 and 2008, 20 percent of brand-loyal customers were having one-night stands with new brands while keeping the old, while 33 percent of these brand-loyal customers dumped their old loves altogether.

A PR WEEK article reports that less than half (48 percent) of highly loyal customers, those defined as "shoppers who made 70 percent of their category purchases with a single brand during a 12-month period," remained dedicated to the brand in 2008. In addition, 33 percent of these customers completely stopped buying the brand even while they continued purchasing items in the same product category.

The recession is playing a large part in the brand loyalty break up. In this economy, retaining customers is a challenge. Catalina Marketing Corp's CHKHDC.UL Pointer Media Network reports only four out of 10 brands kept around half of their highly loyal customers from 2007 to 2008. This report was based on purchasing data from 23,000 stores nationwide.

Which brands lost loyalty? Coca-Cola Classic and Procter and Gamble Co.'s Crest toothpaste to name a few. Reuter's reports Walmart Stores Inc., Safeway Inc., and Kroger Co. are a die-hard brands expected to do well. Their prices are low, and may gain loyalty due to the recession.