"A brand cannot retain its way to expansion and profitability, or even long-term survival—the math simply doesn't work out. It can stabilize, at best, but customers relocate, needs change, budgets tighten, and competitors improve."
"Empirical brand growth research consistently shows that brands expand primarily by increasing penetration, rather than intensifying loyalty among existing buyers. Brands get bigger when more people choose them at least occasionally."
"Customer acquisition is almost a completely zero-sum endeavor: every customer a brand gains is a customer its competitor lost. Yet switching is psychologically unusual behavior."
Retention, loyalty, and lifetime value are important, but they do not ensure growth. Brands cannot rely solely on existing customers as attrition occurs. New customer acquisition is crucial, primarily from competitors. Research shows that brand growth is linked to increasing market penetration rather than deepening loyalty among current customers. The act of switching brands is central to growth, as gaining customers means competitors lose them. This behavior is complex, as humans tend to prefer continuity over change, making switching a significant psychological hurdle.
Read at Brandingmag
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