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We reckon loyalty ‘as you know it’ is dead. So what should a brand do to continue their growth?

September 5, 2012

We reckon loyalty ‘as you know it’ is dead. So what should a brand do to continue their growth?

Last November, Trendwatching wrote about a trend called Dealer Chic where consumer’s are proud of getting a good deal. Rather than cut off the tag of a bargain or cover up a basic bought from a discounter, consumers are waving their deals above their heads and showing others how smart they are.

In 2011 Ernst and Young released a report called This time it’s personal: from consumer to co-creator – they surveyed nearly 25,000 people across 34 different markets around the world asking about purchasing activities, attitudes and perceptions.

Amongst the five trends they identified was a shift in brand loyalty – a “radical transformation of customer behavior”. Overall, across all 34 markets, brand loyalty checked in just under 40% as a determining factor in making a buying decision, however, that number dropped to just 25% in the US, a significant decrease in the number of American consumers who say brand loyalty is something that impacts their buying behavior.

So with brand loyalty decreasing and consumers proud of a good deal, we wonder what impact this has on a brand’s growth strategy.

What does a brand need to do to grow if loyalty is indeed no longer a part of consumer behaviour and the hunt for a good deal is?

This is what we recommend our clients do to keep ahead of the game:

  • Keep innovating and filling your NPD pipeline – we think the key to making this work is including your consumer’s feedback into that process starting with their unmet needs.
  • Make your ideal consumers stakeholders in your brand. Continue the conversations with your consumer so that you know what they want.
  • Always review your customer experience to make sure it meets the needs of your tribes and in fact, exceeds their expectations.

Brands can no longer rely on history with their consumers. They must provide value, innovations and a constantly evolving experience.




In this groundbreaking 2011 report, BrandHook conducted a nationally representative study of the Australian workforce to identify what motivates employees and how happy they are in the workplace. The findings will surprise you… Download the full PDF report now.    

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