Commentary

Debunking Brand Loyalty Myths

Are you loyal to any brands? Marketers look to demographic information to predict loyalty, such as age and income -- but a recent survey shows that this may not be the best approach.

The Strongview 2014 Brand Loyalty Survey aims to debunk the idea that age and income affect a customer's potential for brand loyalty. The study reveals that consumers crave value from brands beyond the price tag, highlighting the need to understand the customer's context and desires during the purchasing process. Only 26% of the 2,214 online U.S. adults surveyed were considered brand enthusiasts.

Brand enthusiasts don't necessarily fit into a mold. They're not all rich. Some 41% have incomes less than $50,000 annually, and 67% less than $75,000. Only 5% of consumers with $150,000 in annual salary were loyal to a brand, compared to 29% of shoppers with an annual salary of $25,000 and 50,000.

What factors are most important when making a decision to purchase a product? Those participating in the survey thought little about the speed of service and shipping, and not all were influenced by sales and discounts. In fact, sales and discounts only influenced the purchase for 19%. About 44% said quality had an influence on the purchase, and 13% said loyalty.

If you manage to find a brand enthusiast, they are nearly four times more likely to spend more with the brand in the future -- about eight times more for enthusiasts -- and have 10 times more brand interaction. Interestingly, 77% have purchased recommendations from the brand, and are three times more likely to make more frequent purchases.

Since Strongview supports email marketing, it's pretty obvious that the company would push email as the most effective contributor for driving action with consumers. The study estimates that 51% of brand enthusiasts and 45% on non-enthusiasts report their last purchase for a brand was prompted by email communication. This is more than online and offline advertising combined. 

Let's face it -- what drove you to make your last online or offline purchase? I admit that for me, it was an email. You go to the brand's site, look at their online catalog, and before you know it you're getting an email that reads: "I know you where at our Web site. Come back and buy those blue suede ankle boots with the really cute buckles. We know you want them." I did. So, I went back and bought them.

Strongview contracted Edison Research to run the poll from March to April 2014. It gathers feedback from more than 2,200 online U.S. adults across major industries.

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