Friday, March 22, 2019

Brand loyalty is a thing of the past for digital native consumers


Brand loyalty has always been crucial to maintain and enhance sales for most companies. However, with the advent of digital channels it has become increasingly difficult for brands to keep their loyal customers. Digital native consumers who have grown up using devices are constantly exposed to a wide range of messaging. This barrage of information makes it difficult for one brand to remain top of mind when these consumers are making buying decisions. With the speed of information today brand image can change in a matter of hours. Public perception of a brand that could have taken years to change in the past can now be damaged almost instantly. A recent example is Papa John’s Pizza. Sales dropped about 10% after reports that founder John Schnatter used a racial slur during a conference call got out. How people relate to brand can change very quickly. 

The level at which brands need to connect with people has become much deeper. Superficial tactics that have worked well in the past, such as having an ad with a catchy jingle that sticks in your head no longer work. Consumers are exposed to so much sensory data that nothing sticks for too long. For a brand to be embedded in the consumer psyche it must somehow align with their values in a much deeper way. Apple, for example, has been a poster child for brand loyalty even with intense competition. Although they may complain about price, most people gravitate towards Apple products because of their reputation for user centric design and innovation. The difference between an iPhone and many other Android phones in terms of apps and features offered is now almost non-existent. Yet Apple consumers prefer sticking to their iPhones because they feel a stronger connection with the brand rather than the product itself. Maintaining this deeper connection with consumers is becoming increasingly difficult and will continue to be a challenge as people get easily “influenced” by social media and digital content. Marketers will need to keep innovating new strategies if they want to keep their consumer's brand loyalty intact.

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