Does Brand Loyalty Still Exist?

With the retail market ever moving to internet offerings, abolishing the high street through new innovative solutions, the question that arises is: Does Brand Loyalty still Exist?

In short, you might say yes. We might always choose a fashion brand because it is our ‘go to’ style. However, even those powerful and iconic names struggle in an ever-changing world. This happens frequently when the consumer is offered better variety and better value elsewhere.  

An example of this includes the supermarket switch from the premium retailer to the discounter, or the choice of shopping your white goods physically vs. buying online. The second example becomes a bit more complicated, when a consumer chooses to view it in your shop and they shop elsewhere, probably online! The difference with the online retailer is that they offer hourly delivery slots, including after work and at the weekends at no extra costs.

Brand loyalty does exist, but the above example demonstrates loyalty-switching behaviour.  If you are going to experience the same or better quality and service elsewhere, why wouldn’t you switch? We live in an extremely price-conscious society, where regardless of income we have all changed the way we shop.

Of course, we cannot discredit the die-hard shoppers of brands, who swear by their favourite supermarket or washing powder, or those that care for the provenance or the story behind their favourite chocolates. These loyal customers are refreshing, and I applaud their values.

However, firms should not rely on brand power alone to get them through a struggling retail market. The solution is not clear, but retailers cannot be naive to the pressure this will cause them if they don’t adapt.

As standard now, customers expect excellent customer service, the best prices and the best quality. Some retailers recognise the point of differentiation such as same day delivery and prime services, but a lot of services that were once considered premium are now considered the norm. This is often where retailers go wrong: before being differential you need to be good at the basics, then apply innovation.

Oh, and if you want to survive, no matter who you are, then 50% of your trade needs to come through an app or an eCommerce checkout. Otherwise, the next 10 years will be tough, unless you have deep pockets and can weather the storm.