Relationship Marketing In A
“No Brand Loyalty” World
By Terry L. Brock
There is a trend that has become standard now with young adults that relates to you in your marketing. It used to be that we were loyal to a particular brand. I remember my college roommate, Charlie Gunkel, talking about his loyalty to a particular retail chain. “I’m a K-Mart man” he would proudly say. For a lot of us college students, on a tight budget, K-Mart offered (at least at that time) a sense of quality, value and even belonging.
My, how times have changed.
Today many consumers are quick to move to the “new, new thing” and embrace a hot new gadget, trend, website, etc. Our friends at K-Mart long ago slipped as people embraced Walmart and other competitors. Yet, in the midst of that certain loyalties do exist and that is where Relationship Marketing .pays off in a big way for you in your business.
A recent survey by the Grocery Manufacturers of America indicated that 49% of participants said a familiar brand name was the first or second most important element when making a purchase in the supermarket. The survey also indicated that 76% of Americans in all demographic groups consider a product’s brand before making their purchase.
This is very interesting for you and me as we provide services. It would seem that a certain amount of brand loyalty still does exist --- at least in some cases. Think of the young adult female who prefers a certain dress shop or brand. Think of the consumers looking for bargains who gravitate to their favorite warehouse store because of the perceived quality and lower prices.
Yes, buyers can move quickly with today’s technology but if there is a strong, mutually beneficial and profitable relationship, Business to Business (B2B) will experience loyalty. Price will not trump relationships if the relationship is strong enough. That relationship is the key.
Think of the loyalty that some have to Starbucks, Apple or Southwest Airlines. Starbucks and Apple are noted for having higher prices. But they both provide an experience as part of their Relationship Marketing. Higher margins are possible with stronger relationships. Successful companies provide an experience more than just a product.
Southwest Airlines is famous for their no-frills approach. Yes, their prices are good but not always the best. I’ve found that their prices are sometimes a bit higher but I still lean towards Southwest. I know they have a simple rapid rewards program so I get free flights more often with them than other airlines. I also like their on-time performance. For me and others, that is most important. Some people have a brand image of Southwest as crowded and prefer assigned seats. For those that have a positive brand image of Southwest in their mind this is not a barrier.
So what can you and I draw from this in our businesses? Here are some important principles:
1. Get Loyalty Early With Enormous Value. To get attention and have people notice you, do a “loss leader” in your service. This doesn’t mean necessarily reducing price but it means going the extra mile (or two miles) to gain initial business. Let them have a “WOW!” experience to get to know you. Provide that extra, or as they would say in Louisiana, the “Lagniappe” to get them on board. Giving that little extra builds loyalty.
2. Consistency Is King. Once you’ve got their attention you can’t slack off on the job. You can’t coast. You’re riding a bicycle uphill --- there is no resting. Yes, you might have done well yesterday, or last week, even last quarter. But it’s like the old football coach would say, “It ain’t whatcha’ done, it’s whatcha done lately that counts.” Make sure you continue to add that “WOW!” to the customer experience. Winston Marsh, a marketing guru from Australia, has said for years we have to “Make the customer say ‘WOW!’.” This “WOW-creation” must be consistently practiced. How is your “WOW! Manufacturing” lately?
3. Commit To Continual Renewal. Refresh. Rejuvenate. Rekindle. By continually refreshing and rejuvenating both physically and mentally, you stay alive and young. Yes, it bucks the trend of sitting and taking it easy. However, if you keep moving forward and renewing, you’ll always have life and continued growth. Constantly study new trends in the market. Just because you studied marketing---or whatever--- in school doesn’t mean you have an “inoculation” to future study in that or other topics. The world can quickly pass you by with new trends and new innovations.
The bad news is it doesn’t matter what you did before. The good news is you can recreate yourself and build brand loyalty anew. Think of each day as a new beginning. This is how relationships work. It is how Relationship Marketing works. Constantly be on the lookout to find new, creative, innovative ways to make your customers say “WOW!”
Maybe if companies like K-Mart practice innovation and making customers say “WOW!” they can bring back old customers and bring in new---even in the Internet Age. In an age of “No Brand Loyalty” you can build it by creating a “WOW!” experience consistently.
________________________________________
Terry Brock is an international marketing coach and columnist who helps businesses market more effectively, leveraging technology. He shows busy professionals how to squeeze more out of their days using time-honored rules and practical technology tools. He can be reached at 407-363-0505, by e-mail at terry@terrybrock.com or through his website at www.terrybrock.com.
Copyright © 2007, Terry Brock, All Rights Reserved Internationally. No portion may be reprinted or used without prior written permission.
And Now for Something Completely Different...
Here's my video of the recent Space Shuttle Launch. This was for STS-120, Discovery which launched Tuesday, October 23, 2007. Not only do you see the launch, but you get to see some of the "inside" profile of Kennedy Space Center. And of course you get to think about how all this relates to Relationship Marketing.
Enjoy!
http://www.youtube.com/watch?v=LZOEtUisbGg
“No Brand Loyalty” World
By Terry L. Brock
There is a trend that has become standard now with young adults that relates to you in your marketing. It used to be that we were loyal to a particular brand. I remember my college roommate, Charlie Gunkel, talking about his loyalty to a particular retail chain. “I’m a K-Mart man” he would proudly say. For a lot of us college students, on a tight budget, K-Mart offered (at least at that time) a sense of quality, value and even belonging.
My, how times have changed.
Today many consumers are quick to move to the “new, new thing” and embrace a hot new gadget, trend, website, etc. Our friends at K-Mart long ago slipped as people embraced Walmart and other competitors. Yet, in the midst of that certain loyalties do exist and that is where Relationship Marketing .pays off in a big way for you in your business.
A recent survey by the Grocery Manufacturers of America indicated that 49% of participants said a familiar brand name was the first or second most important element when making a purchase in the supermarket. The survey also indicated that 76% of Americans in all demographic groups consider a product’s brand before making their purchase.
This is very interesting for you and me as we provide services. It would seem that a certain amount of brand loyalty still does exist --- at least in some cases. Think of the young adult female who prefers a certain dress shop or brand. Think of the consumers looking for bargains who gravitate to their favorite warehouse store because of the perceived quality and lower prices.
Yes, buyers can move quickly with today’s technology but if there is a strong, mutually beneficial and profitable relationship, Business to Business (B2B) will experience loyalty. Price will not trump relationships if the relationship is strong enough. That relationship is the key.
Think of the loyalty that some have to Starbucks, Apple or Southwest Airlines. Starbucks and Apple are noted for having higher prices. But they both provide an experience as part of their Relationship Marketing. Higher margins are possible with stronger relationships. Successful companies provide an experience more than just a product.
Southwest Airlines is famous for their no-frills approach. Yes, their prices are good but not always the best. I’ve found that their prices are sometimes a bit higher but I still lean towards Southwest. I know they have a simple rapid rewards program so I get free flights more often with them than other airlines. I also like their on-time performance. For me and others, that is most important. Some people have a brand image of Southwest as crowded and prefer assigned seats. For those that have a positive brand image of Southwest in their mind this is not a barrier.
So what can you and I draw from this in our businesses? Here are some important principles:
1. Get Loyalty Early With Enormous Value. To get attention and have people notice you, do a “loss leader” in your service. This doesn’t mean necessarily reducing price but it means going the extra mile (or two miles) to gain initial business. Let them have a “WOW!” experience to get to know you. Provide that extra, or as they would say in Louisiana, the “Lagniappe” to get them on board. Giving that little extra builds loyalty.
2. Consistency Is King. Once you’ve got their attention you can’t slack off on the job. You can’t coast. You’re riding a bicycle uphill --- there is no resting. Yes, you might have done well yesterday, or last week, even last quarter. But it’s like the old football coach would say, “It ain’t whatcha’ done, it’s whatcha done lately that counts.” Make sure you continue to add that “WOW!” to the customer experience. Winston Marsh, a marketing guru from Australia, has said for years we have to “Make the customer say ‘WOW!’.” This “WOW-creation” must be consistently practiced. How is your “WOW! Manufacturing” lately?
3. Commit To Continual Renewal. Refresh. Rejuvenate. Rekindle. By continually refreshing and rejuvenating both physically and mentally, you stay alive and young. Yes, it bucks the trend of sitting and taking it easy. However, if you keep moving forward and renewing, you’ll always have life and continued growth. Constantly study new trends in the market. Just because you studied marketing---or whatever--- in school doesn’t mean you have an “inoculation” to future study in that or other topics. The world can quickly pass you by with new trends and new innovations.
The bad news is it doesn’t matter what you did before. The good news is you can recreate yourself and build brand loyalty anew. Think of each day as a new beginning. This is how relationships work. It is how Relationship Marketing works. Constantly be on the lookout to find new, creative, innovative ways to make your customers say “WOW!”
Maybe if companies like K-Mart practice innovation and making customers say “WOW!” they can bring back old customers and bring in new---even in the Internet Age. In an age of “No Brand Loyalty” you can build it by creating a “WOW!” experience consistently.
________________________________________
Terry Brock is an international marketing coach and columnist who helps businesses market more effectively, leveraging technology. He shows busy professionals how to squeeze more out of their days using time-honored rules and practical technology tools. He can be reached at 407-363-0505, by e-mail at terry@terrybrock.com or through his website at www.terrybrock.com.
Copyright © 2007, Terry Brock, All Rights Reserved Internationally. No portion may be reprinted or used without prior written permission.
And Now for Something Completely Different...
Here's my video of the recent Space Shuttle Launch. This was for STS-120, Discovery which launched Tuesday, October 23, 2007. Not only do you see the launch, but you get to see some of the "inside" profile of Kennedy Space Center. And of course you get to think about how all this relates to Relationship Marketing.
Enjoy!
http://www.youtube.com/watch?v=LZOEtUisbGg
posted by Terry Brock @ Thursday, October 25, 2007
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