Monday, November 09, 2020

Loyalty in the age of digital marketing

When consumer are bombarded by ads on a daily basis, the concept of brand loyalty has evolved. While there will be brands that consumers love and adore, those consumers most likely shop from a myriad of brands and their decisions can be swayed in a heartbeat. Most of a brand’s users are light users. In today’s world, growth primarily comes from gaining new users and increasing penetration in the target population, rather than driving repeat purchases from “loyal” customers. This is the key point Byron Sharp, who wrote the book “How Brands Grow” makes. 

Instead of getting “loyal” consumers to purchase more, it is more effective to recruit new consumers to purchase for the first time. As a result, brands should focus on becoming the most salient brand that has the most mental availability, as opposed to figuring out the perfect positioning of the brand to increase loyalty. In addition, differentiation is less important than distinction. It is all about how memorable your brand and product is, as opposed to how different it is from its competitors. In a nutshell, advertising is about refreshing and building new memory structures in the mind of consumers, so that when they want to buy something, a specific brand pops into mind or when they walk into a store, a specific logo or brand jumps out to them on the shelves. 

Instead of driving consumer comprehension of the brand and products, it is about getting noticed and eliciting an emotional response. Instead of teaching the consumer, it is simply about reaching the consumer. Consumers are not rational, they are emotional. To win, it is key to carve a continual presence in the consumer’s mind. 


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