Challenger brands convert loyalty into profit more reliably than penetration
chance of profit growth
loyalty gains21%
new customer penetration10.9%
StatBrand Strategy
Challenger brands are six times more likely to report profit growth when they also report loyalty gains (21%) than when they report neither (3.5%), and roughly twice as likely as when they report new customer penetration (10.9%). For challengers, being chosen repeatedly by a smaller group comes before being familiar to everyone.
Source
The Creative Dividend - a partnership between Effie and System1 (2026)
Andrew Tindall (System1), with Effie Worldwide; ESOC advised by Les Binet
Figure 85, p. 80, The Creative Dividend (Effie x System1, 2026), 297 challenger campaigns
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