What do United Airlines, YUM! Brands, Kohl’s, Ulta Beauty, and Estée Lauder have in common? Their leaders are talking about brand loyalty as a driver of business performance.
There are brands we genuinely love choosing. They make our work easier. They help us perform better. They may even say something meaningful about who we are. In the beginning, the dynamic is simple and elegant: the brand creates real value, and in return, we grant it our preference.
It is just astounding that after more than 35 years, some marketers are still using the flawed funnel approach to how advertising works. This is one reason that real, credible, data-supported brand management must be taught in business schools. For decades, we have known that using the funnel approach to advertising, in hopes of building brand loyalty, is a form of mismarketing on a major scale.
Amazing about face. In a world where deals and promotions abound, where “conquesting and conquering” customers has become the modus operandi (viz, the streaming brands, the automotive industry) and where value continues to be equated with price alone, Barron’s, the financial newspaper, tells us brand loyalty is “in” again. At least in fast food.
A recent article in The Wall Street Journal reminds us that understanding value is critical for brand viability. The story focuses on McDonald’s. According to the reporters, the V (Value) in Ray Kroc’s QSC and V (Quality, Service, Cleanliness, and Value) has vanished. McDonald’s is struggling to recapture its customer-perceived value positioning.
