What ever happened to brand loyalty? Back in our grandparents’ day you picked a brand of detergent and stuck with it for life. But even before that brand loyalty was more a function of quality – it wasn’t always easy to get high quality products, so companies like General Electric and Good Year Tires made names for themselves from having high quality products. These days quality isn’t as much of an issue, as there is a multitude of products out there to choose from that are all basically the same quality. So what can you do to set your brand apart in an age where economic factors tend to rule customer habits?
Millennials are leading the way in the new age of brand loyalty. Of Millennials polled:
- 59% are loyal to wireless providers
- 56% are brand loyal to clothing brands
- 39% are brand loyal to health and beauty brands
The three largest brands today still experiencing consumer loyalty are Google, Apple, and Amazon. Getting people to be more brand loyal is getting to be a trickier business – 78% of Millennials say that brands are going to have to work even harder than before to keep their loyalty. And even things like poor business practices can hurt customer loyalty more than ever before in history.
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Brands are going to have to keep up with Millennial demands in order to be competitive in a world where literally anything you want is right at your fingertips 24/7. In fact, that’s the number three reason Millennials report not being brand loyal – all the options they could ever want are right at their fingertips. The second most common reason Millennials shy away from brands is over-promotion. The most common reason – and this is a big one – unmet expectations. Millennials want the best and no amount of brand loyalty is going to stop them from getting it.
The good news is that this new era of brand loyalty levels the playing field. Startups and small businesses can compete with the 800 pound gorillas of the world because quality matters more than anything else. It also gives more power to consumers because brands have to listen to their feedback or they won’t make it.
Is brand loyalty dead? At least in the old sense it certainly is. But more accurately it has just evolved into something that improves the landscape for all sides. Learn more about the evolution of brand loyalty from this infographic!