It takes a lot more to find a new customer than keep one. A new report by independent analyst firm Datamonitor says that Brand Loyalty may be more important than attracting new consumers. Brand loyalty is a factor that has a strong influence on purchase decisions. According to some estimates it costs nine times more to attract a new consumer than retain an existing one. Despite reports that consumers are abandoning brands, Datamonitor’s view is that consumers still attribute symbolic meaning to brands.
Consumers are embracing brands that reflect their lifestyles and values . Datamonitor research shows that more than half (51%) of Europeans and Americans appreciate brands that match their attitudes and outlook on life while 56% value marketing which reflects their personal situation.

Variety-seeking on the rise
Contemporary consumers are easily bored with ‘the usual’, often seeking out the new. Openness to unfamiliar ideas, cultures and objects is increasingly desirable in the so-called ‘global village’. This has led to a more inquisitive and experimental mindset. Variety-seeking behavior has been encouraged extensively by marketers and retailers in recent years, especially to encourage consumers to trade up to more expensive products. This has been deemed necessary by many consumer goods marketers, as static or declining population demographics have reduced the volume growth of mainstream consumption and higher value products have intuitively been regarded as the best way forward.

In 2004 Datamonitor conducted widescale consumer fieldwork across Europe and in the US on the subject of being open-minded in trying new things. It proved to perfectly encapsulate the variety-seeking phenomenon. Overall, 15% of consumers had no strong views on the subject and a maximum of 3% of consumers (in Germany) thought it was unimportant to have this open-mindedness to any extent. In the context of consumer surveys, this leaves a significant proportion of consumers who consider it important to try new things. The changes in consumer behaviour demonstrate that ‘seeking out the new’ is very much on-trend.

According to a 2006 survey by the Grocery Manufacturers Association in the US, only 29% of brand loyal consumers would react to a ‘stock-out’ when shopping by buying a brand other than their usual preferred choice. Two thirds of US consumers (67%) would remain loyal to the brand, either by trying to find the brand in another store or foregoing the product until their next shopping trip.
"Seeking new customers by increasing the pace of innovation is one way to attract new consumers, says Matthew Adams, consumer market analyst and author of the study. "However, this is inherently difficult as the pace of innovation must match consumers’ expectations and perceptions. There is still some loyalty in consumer goods markets and marketers need to make it a strategic goal as the markets they serve in developed countries have reached maturity and retention takes precedence over acquisition of consumers." 

Source: http://www.datamonitor.com