- [inlinetweet prefix=”” tweeter=”” suffix=””]75% of consumers admit to having a preferred brand when shopping, but 76% of those said they are likely to change their mind as they shop[/inlinetweet].
- 83% cite value based on the price paid as being the No. 1 factor when considering making a purchase, followed by quality at 80%, reputation at 47%, and service at 39%.
Brand loyalty is fading for most products, but not for all. Even brands that were once thought to be immune, like Apple, are having a hard time retaining customers. Why is this happening?
For products found in grocery stores it has a lot to do with value and the growth of private label. Private label sales are increasing rapidly and there is even now “premium quality” private label products. Consumers have also become a lot smarter at a time when their paychecks aren’t going as far. “Why should I pay more when the store brand is the same product” one woman said in a focus group.
But why the decline in brand loyalty for premium brands like Apple? For one thing Apple has lost its innovation. Why pay almost $800 for a new iPhone when an older model will do? A review of comments around the new iPhones indicated that many people don’t plan to upgrade because of the price. The value, compared to their current iPhone, just isn’t there, plus they know Apple makes a very healthy profit on each iPhone they sell.
Is all brand loyalty dying? No, of course not. Some bicycle brands have very high brand loyalty as well as some auto brands, but more and more consumers are not willing to pay the extra money to stay brand loyal and today it’s all about value.
Brands, and marketers, have to get back to the basic fundamentals of brand loyalty focusing on value and the brand promise. What you think is happening, sitting in your office, may not be happening at all at the retail level.
Big data be damned. Sometimes it’s about the basics of marketing.
