The Demise of Brand Loyalty
It is thought that baby boomers are those that are likely to be still loyal to the brands that they use. This means that your grandma and grandpa can be expected to use the same brands through the years. But this is not entirely true anymore according to market research. Because of this it is thought to be that the millennial thing of switching brands is spreading among the baby boomers. But maybe this millennial thing of wanting the best customer service from brands is something to desire in the first place.
Maybe brand loyalty is what makes companies have a tendency for laziness when it comes to their products and customer service. You can say that their customers’ being loyal gave them reason to rest on their laurels. However the attitudes of customers are already changing even among those in their senior years. They want to get the maximum value for the money they spend so they want both great products and great customer experience.
Where Brand Loyalty Remains
There are still some brands where you can find people exercising brand loyalty. One of these is fine jewelry. The other one is in luxury cars. When people are loyal to a certain brand of car they are said to have automotive brand loyalty. People choose to have automotive brand loyalty for cars that show their status in life. They engage in automotive brand loyalty when using the car allows them to maintain their high status. That is why it is easy to see rich people who are practicing automotive brand loyalty. They will not be keen on abandoning their automotive brand loyalty anytime soon as they get satisfaction from the current brand of luxury cars that they are using.
For other things aside from fine jewelry and luxury cars there exists almost no brand loyalty anymore. Maybe you are thinking that you could reverse the tide in your business by giving a loyalty program to your frequent customers. Such a program of yours could involve discounted prices on the goods that you sell. But if you research about it you will find that this kind of program does not gain much success anymore. There are people who subscribe to such programs and do not renew their memberships after some time. What this shows is that you cannot use this as your way of sustaining the bottom line of your business.
How should businesses act then with regards to this information? What this means is that they would have to put in the time, money and effort so that they can innovate. In addition they must continue giving excellent customer service.