Debate: Have apps killed brand loyalty?
I wrote a column for MediaPost yesterday entitled, “Have apps killed brand loyalty?”. Check it out and let me know what you think. Very happy to hear that I’m full of hot air ;)
The basic premise of the article is that with all the available data we have today, and the immediacy with which we can obtain that data, brands are going to increasingly have a harder time keeping loyal customers.
So in this always-connected world…
Is brand loyalty only going to be reserved for “cult” brands like Apple and Nike?
-OR-
Will companies be able to use this new era to create an evolved form of brand loyalty which potentially could be even more powerful than before? If so, how?
Let’s debate!
I’m stalking your blog, Jeff. LOL. Seriously, though. Good article, but I certainly don’t view it as an assault on brand loyalty. If anything, it’s changing the way brands must forge relationships with consumers. Brands can not so easily get away with just being familiar now a days. The whole strategy of creating so many brand impressions to gain mindshare in order to capitalize on the human behavior of gravitating towards the familiar? Failing. THAT is what apps are killing. So what must brand marketers do then? Compete on value proposition and deeper emotional brand relationships instead of just brand familiarity.
Referring to your article story, maybe I would consciously choose to spend the extra $5 on the Bose headphones at Target because my overall relationship with that brand is stronger – hypothetically because maybe I enjoy a better shopping experience, better online tools to assist me with shopping, better return policy, less gas making multiple trips and maybe I also like that Target has a smaller carbon footprint and donates to saving the endangered Ethiopian sand chicken (again, hypothetically speaking). Maybe Target has a better loyalty rewards program?
I love Costco. I have a great relationship with the brand. They once got me a killer deal on a mortgage I couldn’t get anywhere else. And for that, sometimes I mind a little less about having to buy 6 months worth of pickles for a barbeque I’m having on Sunday. I know in the long run, giving them my business is more worthwhile to me than a one night stand with Joe’s House ‘O Bargains down the street.
Brands listen up: deeper relationships based on long term value and emotional connection = loyalty!
I would have to vote for your second option above. In regards to brand loyalty, apps could hurt loyalty towards more mainstream names but actually help out smaller brands. Brands are going to have to be more conscious of trying to direct what’s actually being said about them. Loyalty will be more fleeting in regards to peer reviews. Unless they do a killer job creating brand advocates, larger brands won’t automatically “own” the loyalty space as easily. I think the rise of small micro-brews in the beer industry are a good example of this.
I wrote a post about this a while back but a shopping experience I had at Best Buy reflected your example. After scanning different QR codes shopping for a new router, I ended up buying a certain brand (and spending $15 more) because of the consumer reviews.
Apps will continue to direct purchasing decisions for brands. What’s being said from the community will influence the final decision.
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Yes, having access to more information means more decisions. But that doesn’t change the criteria we consider when evaluating purchases. It just means more data points to apply to the same decision making process.
We do not suddenly have a keener interest in value. We’ve always been concerned with value and high value products will have deeper brand loyalty than lower value products.
Be the best value and brand loyalty won’t be an issue.