Why CPG suppliers need to think differently about which brands matter most to customers

Opportunity or threat? Perspective counts for a lot in grocery retail. According to one recent study, for instance, half of shoppers would now switch to another brand if they felt that it offered better quality [EY] than the one they buy today. Whether that thought fills a supplier with excitement or dread will largely be down to the confidence they have in their product set.

Quality is only one example, of course. For other shoppers, the decision to switch might come down to price, availability, or something else entirely. What’s clear is that now – perhaps more than ever – consumer packaged goods brands need a better understanding of what customers care most about. Get it right and the gains at the shelf (both literally and commercially) could be huge. Get it wrong, and the risks are self-evident.

”At a time when CPG marketers urgently need to build and maintain competitive advantage, the sheer intricacy of the retail environment makes it harder than ever to understand how”

Just because something’s important, though, doesn’t make it easy. At a time when CPG marketers urgently need to build and maintain competitive advantage, the sheer intricacy of the retail environment makes it harder than ever to understand how. Knowing what actually matters to customers is becoming more difficult by the day.

Over the years, a range of preference studies have sought to answer the question of which brands matter most to customers and why. Whether they look at actual behaviours or simply attitudes and satisfaction, though, all have critical flaws. For instance:

i. Behavioural and sales-based techniques don’t account for the bigger picture.

On the surface, stated customer behaviours or actual sales figures are a great way to understand CPG brand performance. Look a little deeper, though, and the problems quickly become clear. Firstly, there’s no allowance for issues like customer sentiment or loyalty – both of which are critical for understanding the truth of a brand’s prospects. Secondly, the focus on sales naturally skews towards large brands.

ii. Attitudinal and satisfaction-based approaches don’t always translate to the real world.

Flip the above technique on its head and you end up with a measurement approach that prioritises attitudes and sentiment: a measure of customer satisfaction and not much more. Not only is it typically very difficult to connect that kind of intelligence with actual financial outcomes, there’s also the ongoing problem of the ‘say/do’ gap; how people say they act isn’t always what they do in practice.

Essentially, the current approach to brand preference is fundamentally broken. It neither answers the key question, nor tells brands how to grow – which is why it’s time for something new.

Introducing the Brand Preference Index

Since 2018, dunnhumby has been tracking the performance of different retailers around the world via its Retailer Preference Index (RPI) studies. At its core, each RPI asks one critical question: Does a retailer’s ability to deliver on customer needs have an impact on its success? From the US through to France, Italy, Spain and beyond, every study in the RPI series has helped to demonstrate the imperative importance of a customer-first approach to retail.

In early 2025, dunnhumby is set to apply the same level of scrutiny to CPG performance with the launch of the first edition of the ‘Brand Preference Index (BPI)’. This new study, focused solely on the UK market, is designed to bridge the gap between those behavioural and attitudinal approaches described above, and highlight the fact that a customer-first approach to brand-building is just as important for CPGs as it is for retailers.

Of course, there are far more CPG companies than there are brands, but dunnhumby’s unique customer priority science – based on how integral different brands are to a shopper’s basket – has facilitated a more nuanced view of the UK’s top 50. That’s particularly true when compared with the raw insights typically obtained from electronic point-of-sale (EPOS) data.

For those top 50 identified brands, as well as looking at behavioural metrics like brand share, customer penetration and repeat purchasing rates, the BPI also surveys shoppers on their ‘emotional connection’ with brands. dunnhumby asks respondents to reveal how loyal to a brand they are, for instance, and the extent to which they actively seek it out when shopping. They are also asked how sad they’d be if they found that it was no longer available, and whether they love the products a CPG makes.

Now, nuanced science is nice, but it’s nothing without practical application. So, how exactly will the BPI help Britain’s consumer brands with some of the challenges outlined above?

Uncovering the truth about CPG success

When it launches towards the beginning of next year, dunnhumby expects the BPI to give brands the insights they need to develop a more customer-centric view of their position in the market. More specifically, it will help to explain where brands stand against their key competitors, what they can do to maintain or improve that position, and:

● Who’s winning in the consumer goods industry – and why 
The inaugural BPI will include a full breakdown of the UK’s top 50 consumer brands, and the factors shaping their success. From industry powerhouses to rising stars, the BPI will shed light on the secrets of the UK’s top-performing brands.
● What matters most to customers when deciding which brands to buy
From price through to quality, shoppers take a wide range of factors into account when choosing which product to put in their baskets. Which matters most, and what specific needs should brands be appealing to if they want to improve their standing? 
● Which brands are set for future success (and which are living on their legacy)
Sales success and shopper preference don’t always align and, when one is higher than the other, it can point to opportunity or risk for the brand in question. The BPI will reveal which brands have the potential to boost their sales – and which are at risk of decline.
● How different customer lifestages impact preference and decision-making
Customer needs can shift dramatically depending on which stage of their life they’re at. From shoppers who are just starting out, all the way through to retirees, the BPI will look at the changing nature of preference between key demographics.

From winning space on the shelf through to winning the hearts and minds of shoppers, the BPI will also contain a wide range of additional insight when it launches early in the new year. With behavioural deep-dives, category-level learnings, and a variety of strategic analysis, it’s set to be an essential read for anyone who wants to secure (and improve) their position over the year ahead.

If you’d like to read the UK Brand Preference Index 2025 or discuss any of the above with dunnhumby, you can register your interest here.