In the past few years, some organizations have claimed that brand loyalty has eroded and is disappearing before our eyes. Others have claimed that it’s not gone for good. Though there’s more evidence to support the former, all businesses know that the market and your consumer’s preferences are always bound to change. That’s why it’s important to track certain market indicators, like brand loyalty, and use its current state to your benefit, whether it’s eroded or not.
What’s Happened With Brand Loyalty?
From a survey conducted by Mckinsey, since COVD-19 started, 73% of consumers have exhibited new shopping behaviors, switching their loyalty to different brands. Mckinsey predicted that number to remain consistent as 75% of shoppers said they plan to continue this behavior post-pandemic. Two of the main reasons it seems like brand loyalty has started to erode includes an uptick in price or delivery perks brands have promised during the consideration process, as well as a simple increase in exposure to other brands for consumers.
Oftentimes, consumer trends eventually become B2B buyer trends. That along with the fact the U.S. is still experiencing a bottleneck effect in the supply chain, businesses are now making the switch to other brands simply because their current brands aren’t available and competitor brands are swaying buyers with marketing and promotional offers. These new buying behaviors have shown Mckinsey’s prediction to be fairly accurate as, during this past year alone, 26% of consumers have said they stopped using or buying from a business.
With brand loyalty in a state of disarray and uncertainty, it’s important for businesses, especially ones that might sell multiple brands, to figure out how to navigate the market to ensure their sales stay intact.
Why Is It Important To Track Brand Loyalty?
Tracking brand loyalty can help your business in a number of ways, but most notably, it can show you if consumers are loyal to certain brands or if they’re open to the idea of purchasing from new ones. Knowing which brands your prospects prefer can greatly impact your sales because you can better understand how to approach your buyers and navigate the sales conversation. Likewise, if you know that businesses or consumers in your area aren’t loyal to any specific brand, you can use that information to your advantage.
For example, let’s say you’re a dealership that sells agriculture and construction equipment. If you notice that a farm in your area has bought from different brands for the past three years, you know they might not be loyal to any brand in particular. Using that information, you can approach them confidently about the brands you offer and the benefits of them compared to the brands they currently own.
Navigating This Disloyal and Uncertain Market
There are a few ways you can use the trend of brand disloyalty to your benefit including:
Section 179 is an IRS tax code that allows businesses to write off the full price of qualifying equipment or software in the year it was purchased. For instance, if a farm bought a tractor for $20,000 this year, they can deduct the entire $20,000 from their 2022 taxes. Currently, the maximum amount a business can deduct for the year of 2022 is $1,080,000. That includes equipment that is purchased or leased/financed.
The term “leased/financed” is especially important here as that means companies don’t have to finish paying off the equipment before the end of the year, but can still deduct its full price from their taxable income. If you’re an equipment dealer, making your prospects aware of this fact can help you boost your sales and revenue for the final quarter of the year. That’s especially true during a time where brand loyalty has disappeared. Businesses might be more willing to purchase heavy equipment that could contribute to their tax deductions, no matter the brand’s you offer.
Programmatic advertising is a system that purchases and places ads for you based on a maximum bid amount. Essentially, you tell the system what you can afford, and it finds the best ad inventory to engage your audience, based on your budget. These ads are often developed through a platform where you can easily monitor your campaign and optimize it for your audience. Using programmatic advertising, you can attract your target audience more effectively and show them the brands you have to offer. This helps to increase your dealership’s awareness, which can greatly impact a buyer’s consideration process.
Randall Reilly currently offers programmatic marketing solutions that help businesses and target a custom audience based on equipment ownership or buyer behavior. We match that audience with data to ensure we precisely target the right buyers for your campaign. Wherever your prospects go to consume their preferred content, Randall Reilly can use its programmatic ads to ensure they know about your business and the brands it offers.
It’s important to not only know what your prospective buyers might be looking for, but also when they’re looking to purchase. Without the right data, you’ll have a harder time finding the right leads and prospective buyers for your business to boost your sales and revenue.
Data products, like EDA and RigDig BI, can help with that. They allow you to see what types of brands your consumers prefer, along with when they tend to make purchases. Given how critical parts and service revenue can be to a business, you can also use that information to focus your marketing efforts on those target equipment owners and inform them of your parts and service abilities.
Whether or not brand loyalty is eroding, you can use data to your advantage. Show prospects that you understand their business and tailor your pitch, so it aligns to the type of equipment they currently own. This gives the options you offer a greater chance of resulting in a sale. Whatever the case, you can make the most of your sales team and their experience with the right information. Sign up for a demo today to see how EDA or RigDig BI can help you boost your revenue and understanding of the market.