It has been just over a year since Brian Fernandez posted about French’s ketchup on Facebook, leading to a huge social storm about the decision of ketchup giant Heinz to pull out of small-town Ontario and move manufacturing to the U.S. With only a few words, Fernandez was able to blast a hole in the customer loyalty long enjoyed by Heinz.
As a result of the social attention the community-conscious company received, French’s ketchup sales jumped by $20 million in 2016, with their share of the market going from 3% of overall ketchup sales to 18%. Now if that isn’t a display of the power of customer loyalty, we don’t know what is!
So what has happened since? Since that time, French’s has made significant moves to draw on this loyalty. Earlier this year it announced that all of its ketchup would henceforth be manufactured in Canada, at its North York plant.
This display of Canadian solidarity and pride has clearly been a good plan.
While Heinz still reigns supreme in the ketchup world, it is clear that loyalty can shift quickly if given the right boost. Once earned, loyalty isn’t necessarily lasting.
What can we take from this? In CPG, customer loyalty is a hard thing to master. It, like anything else worth having, takes work.
So, while you can’t really manufacture a viral social storm as Fernandez (unknowingly) did, there are a few things you can do.
If you’re looking for ways to boost your customer loyalty, Storesupport can help. We’ve got both the in-store and online resources to ensure your customers are happy with your brand and sticking with you. Call us today to find out more: 1-877-421-5081.
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