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Sharp's Laws

Sharp's Laws

"Your customers are really other people's customers who occasionally buy you"
Andrew Ehrenberg
The development of the Purchase Outcomes™ framework has been strongly influenced by the work of Byron Sharp and How Brands Grow. Of particular relevance to the development of the framework have been the following laws that govern shopper purchasing:
  • Growth comes from gaining more buyers.

  • All brands lose buyers.  Buyer defection is predictable, and growth is due to the extraordinary acquisition of buyers; contraction is due to dismal acquisition. 

  • Most brand and category buyers are light buyers.

  • We see the regression to the mean phenomenon when looking at buyer frequencies over time.

  • All brands face a Negative Binomial Distribution distribution of heavy to light buyers.  When brands grow or decline they simply move from one weight of this distribution to another.

"It is not possible to grow market share without reaching category buyers who never or very seldom buy your brand” 
Byron Sharp
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