Brand Loyalty Blog Series: Does Price Really Matter?
For many companies, brand loyalty is a major factor in driving revenue and profit, but just what makes a customer loyal to a brand? Last week, as part of our brand loyalty blog series, we revisited the issue of age and how it impacts brand loyalty. To follow that up, this week we examine price, and the impact it has on brand loyalty.
Check out this infographic that looks specifically at a number of different things that can impact brand loyalty, and the consequences of a customer shifting their loyalty.
If we pay special attention to the numbers relating to price, there are some startling factors to consider.
According to the infographic, 80% of people will switch a brand or switch a store if there is a promotion. Obviously price plays a big role in choices made when shopping. Furthermore, shoppers said that 83% of their unplanned purchases were made because of a promotion.
So what happens when a shopper switches for a special promotion or a lower price? Do they go back to their original brand once that promotion is done? According to the graphic, 78% of shoppers asked said they have engaged in showrooming, or checking out a brand in-store and then going online to find a better price. Customer loyalty is fluid; just because they were once loyal, doesn’t mean that they will always be loyal.
Price plays a big role in brand loyalty, and that means that you have to continue to compete in other ways – ramping up your marketing, ensuring shelves are never empty and that pricing is always correct, and staying up to date with how your brand is performing in-store compare to your competition.
Marketsupport can help you combat the challenges posed by price when it comes to brand loyalty through services like competitive pricing audits. Call us today at 1-877-421-5081.
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