Brand Loyalty, Bigger Isn’t Necessarily Better.

The American Marketing Association defines brand loyalty as:

  • “The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category” (sales promotion definition).

  • “The degree to which a consumer consistently purchases the same brand within a product class (consumer behavior definition).

Here’s another way, a real world way, to size up the concept of brand loyalty

Marketers often make the mistake of thinking that selling to big companies is the best way to grow sales and profits. To that we say, phooey!

The truth is, study after study has found that it actually makes more dollars and cents for businesses to market their products and services to small- and mid-sized companies. Why? Because small- and mid-sized companies are far more loyal to brands with which they’ve had a positive experience.

Owners and managers of both small- and mid-sized businesses routinely report that they maintain long term-relationships with vendors and suppliers once they’ve had a favorable dealing with them. Better yet, many of these same folks go on to reveal that they’re more likely to form lasting relationships with vendors and suppliers that tailor their marketing programs toward businesses of their size.

Not so surprisingly, many top, i.e. successful brands such as Dell, Kinko’s, FedEx, Intel, Southwest Airlines, American Express, Cisco Systems and UPS recognize this, and aim many of their marketing messages squarely at small- and mid-sized businesses.

What do brands like these and others get for their efforts? Brand loyalty customers help to grow sales and profits. What do those other marketers that mistakenly dismiss potential customers for not being big enough get? Unfortunately, customers that are likely to leave them after just a sale or two.

Best of Days to You,
Audrey Ferrante


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