Monday, September 30, 2019

Brand Switching

"62% of consumers who switched brand in the past 12 months did so because brands successfully attracted them, rather than bad customer experience pushing them away.
61% of consumers switched brand at least once in the last year, with automotive (70%) and supermarkets (68%) showing the highest percentage of customers willing to switch brands due to the lure of new opportunities.
Only banking found previous poor customer experience to be an equally decisive factor for the switch, where it was a 50-50 split.
Consumers see a brand being ‘genuine’ as more important in encouraging them to try a startup versus an existing brand they haven’t tried before (31% vs 17%). ‘Innovativeness’ (25% vs 20%) is also important, as well as ‘reflecting a consumer’s values’ (17% vs 13%)."
Source: MarketingWeek Monday, September 30, 2019 email 
Data source: Data & Marketing Association (DMA)
So authenticity, innovation and shared values are brand attributes that can lead to new brand trial and brand switching behavior. And, per previous research, high customer satisfaction does not guarantee customer loyalty. In fact, in categories in which customer satisfaction is high across most or all brands, loyalty is diminished.
For other thoughts on brand loyalty, authenticity, innovation and shared values consider these blog posts:



Shared Values:

Other reasons why customers may switch brands:
  • Customer service is poor or lacking
  • The brand does not deliver at least an adequate value for the price
  • You do not have an adequate understanding of the customer and his or her needs
  • Your brand is resting on its laurels, it is no longer exciting, it is not keeping up with the competition
  • Your brand is not readily available or accessible compared to other brands
  • Another brand offers a free trial and delivers a better value proposition
  • A superior disruptive brand enters the market
  • Your brand has not established sufficient emotional connection with its customers

We recommend that clients constantly measure their customers' attitudinal loyalty and emotional connection to the brand. Our BrandInsistence brand equity measurement system measures attitudinal loyalty and increasing degrees of emotional connection. Even small statistically significant changes can be bellwethers for potential problems. But know that no amount of measured satisfaction or loyalty can guarantee that brand switching won't occur.  


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