Brand Loyalty Is On Its Way Out. Now What?
For many, this has grown into a habit with staying power — the comfortability of abandoning a well-loved brand for something else that works just as well. This newfound mentality means that brand loyalty is in jeopardy.
But it’s not all bad. Consumers have broadened their thinking and willingness to try new things, leading to brand discovery. The playing field has been leveled for those smaller and newer. Consumers have more options online, and there’s a willingness — even a longing — to branch out. What’s even more exciting — or nerve-wracking, depending on your position — is that a majority of consumers who branch out plan to buy the new brand again, according to McKinsey research.
But what if your brand is the one losing customers? Or you’re a newcomer that finally has a chance to compete? If loyalty can’t be counted on, how should efforts be prioritized?
To reap the benefits of brand discovery, marketers have to be proactive:
Speak directly to your consumer. Understand where your key audiences are and get in front of them. Many consumers are spending more time on social media and digital marketplaces. Advertising here is a great way to reach them, even as these channels become more competitive.
Create and optimize content based on consumer needs and interests. See an increase in search volume and sales related to your product? Capitalize on the opportunity by creating content that aligns and optimize accordingly. Determine the gaps in competition where you could succeed. Layer search data on top of your own to understand opportunities and prioritize channel, audience and asset types.
Give consumers a reason to choose your brand. Invest in partnerships with like-minded influencers. Seeing a product in action via reliable sources is important to gain the trust of new consumers who can’t experience it firsthand before buying. Nineteen percent of Gen Z-ers have discovered new products through influencer endorsements, according to GWI. With spending power of $143 billion (per a Barkley report), that’s huge!
The research and consideration phase has been elongated. Provide comparison content that highlights your company’s differentiators to make it easy for those shopping around.
Be omnipresent and make it easy to convert. Digital visibility is more important than in-store shelf space, but in-store experiences shouldn’t be neglected. Make sure all shopping avenues are up to par. Information needs to be accurate and consistent across digital properties.
Test, test, test. Testing cannot be overvalued. From audiences to tactics to messaging, plan ahead to understand what drives the best performance.
While worthy of attention, losing brand loyalty isn’t a curse. You may have to work harder and in new ways, or bring in experts to better understand today’s consumer, but there’s opportunity here. Is it scary? Yes. But will losing brand loyalty define your success? Only if you let it.