{"id":1372,"date":"2015-03-24T10:56:29","date_gmt":"2015-03-24T14:56:29","guid":{"rendered":"http:\/\/www.acaweb.ca\/en\/?p=1372"},"modified":"2020-10-27T12:19:48","modified_gmt":"2020-10-27T16:19:48","slug":"who-gives-a-hoot-about-brand-loyalty","status":"publish","type":"post","link":"https:\/\/acaweb.ca\/en\/2015\/who-gives-a-hoot-about-brand-loyalty\/","title":{"rendered":"Who Gives a Hoot About Brand Loyalty?"},"content":{"rendered":"

Brand loyalty is dying and, some would argue, on its last breath.<\/p>\n

The fundamental reason CMOs and their legions of marketers exist is to create brand loyalty, but this in and of itself is becoming an irrelevant and dated concept.<\/p>\n

Increasingly, especially in Canada, it appears marketers are becoming devoid of brand zealots, who define and passionately champion and protect their brands.<\/p>\n

This is partly attributed to the repatriation of packaged goods marketing to America. At one time Canadian offices of American multi-nationals recruited and trained brand managers to champion their brands in Canada.<\/p>\n

Often these folks rose through the ranks and ultimately led their companies and all its brands. Marketers led. But as brand marketing moved south of the border fewer marketers were recruited and fewer were trained in brand stewardship. Increasingly, Canadian companies are being led by people who grew up in finance or operations but not marketing.<\/p>\n

No wonder some claim brand loyalty is on the wane.<\/p>\n

Brand loyalty has historically been key to fueling shareholder value. It works this way: A great brand makes a promise and keeps it. Consumers then reward the brand for keeping that promise by choosing it over other brands more often than not. They are on their way to becoming brand loyal customers, but brand loyalty has to be measured beyond purchase frequency alone.<\/p>\n

True brand-loyal consumers have an emotional connection to their brands. They have an affinity for them. They choose them over others. When unavailable, they search for their brands rather than substitute them with others. As brand loyalty intensifies, marketers raise price, improve margins and the share price heads north.<\/p>\n

But this is old and dated thinking. The concept of brand loyalty is waning. As long ago as 2005 the Ivey Business Journal featured an article by Jean-No\u00ebl Kapferer, who wrote:<\/p>\n

To say that brand loyalty is in decline today is, at the very least, an understatement. A common, unequivocal conclusion emerges from almost all research. Consumers are more versatile and less loyal than they have ever been.<\/p>\n

There is much evidence to suggest brand loyalty is waning:<\/p>\n