Loyalty of Brand

Why Customers Become More Loyal After Flirting With Other Brands

I have used Old Park High Endurance deodorant for more than 7 years now, with only one brief bout of infidelity.

Park Avenue

I can’t remember why, but last summer I decided to branch out and try AXE, Gravity, Nevia  or Dove Men or some other non-Park brand. I applied it to my underarms, per the directions. And I have to say, I haven’t sweated like that since I was given the word “surreptitious” on stage at the 1993 Kane County Spelling Bee.

I quickly returned to Park and don’t intend to stray again. And as it turns out, some researchers  have studied that very effect: How flirting with other brands actually builds loyalty to consumers’ favored products. Behavioral scientist Francesca Gino writes in 

When consumers who are in committed brand relationships flirt with other brands, they become even more attached to their primary brand. They are then willing to spend more money to purchase that brand’s products, and more frequently.

Conventional thinking in marketing is to position your brand’s key differentiators against your competitors, thus attracting people to want to try your brand, like it, and become a raving fan. What that might really be doing is strengthening the attachment fans of your competitors’ products feel.

Gino’s research would suggest that a Pepsi shouldn’t be trying to lure Coke fans away. It should be prodding its own fans drink a Coca-Cola.

So, why is this? Gino explains:

Research on interpersonal relationships reveals that flirting with a person to whom one is uncommitted elicits excitement and other positive feelings, as it is often playful, pleasant, and arousing. In the context of brand relationships, flirting can similarly elicit excitement, as using or admiring a brand other than one’s favorite may be a fresh and arousing experience. This arousal can be transferred to the favored brand, resulting in greater affiliation with the brand and a greater desire to consume it.

Top 5 Mistakes Made in Marketing

Marketing Mistake

1. Lack of Research and Testing

Market research and testing should be done to determine the performance of every marketing effort. This takes the guesswork out of what your potential customer or client wants. Always make sure you have done your due diligence when it comes to testing different offers, prices, and packages. Get the input of your customers.

2. Improper Focus and Positioning

Don't market to build up the company, but approach marketing to demand an immediate response from the recipient. Improper focus and market positioning can be avoided by following the proper solution positioning of marketing.

3. Marketing without a USP

Your USP is your unique selling proposition. It is the one single statement that will single you out amongst the competition. It should be used in every piece of marketing material. Think of your USP as the philosophical foundation of your business. Don't market without it!

4. Failing to Capture Repeat Customers

Keep in mind that when marketing 80% of your business comes from existing customers and 20% comes from new customers. Failing to resell to your current customer base could have a detrimental effect on your profits. It will cost you 5 times the expense to sell to a new customer than to sell to an existing customer.

5. Lack of Focus on Potential Customer's Needs

Do you really know what your potential customers need and want? If so you are ahead of the ballgame and probably don't need to be reading this article. Truth is very few businesses have a good grasp of what it is that their customer needs from them. The secret to avoiding this common error is to find a need you can fill and then fill that need better than anyone else.

Branding Tips for New Businesses

Technology has changed the landscape of how businesses communicate with their customers. These days, marketers reach a target base by implementing online techniques such as search engine optimization or by utilizing social media. But even though modern businesses exist in a state of hyper-competition in the online world, the fundamentals of business strategy have remained relatively the same. One such cornerstone of a successful business is effective branding.

Those who don’t place much importance on branding need only to look to Coca Cola or Apple or any number of other titans of industry that have remained profit-generating goliaths over decades or even generations. And like any fundamental value, many of the best ways to build a successful brand are still based around core principals that have informed businesses practically since their inception.

1. Know the Customer

It’s an old adage, and one that is still relevant even in today’s world of SEO and Google Analytics. The key to successful branding is still identifying a target base and defining it through segmentation. After this is accomplished, it’s up to the marketer to link his or her service or product to that customer base with a promise. It’s in this way that a particular brand becomes superior to the competition.

2. Stay on Top of the Competition

One of the main reasons businesses fail is because they fail to see how customers respond to their competitor’s brands. This goes beyond looking for chinks in competitors’ armor and includes looking at how they are successful as well. It’s only by fully understanding these two key aspects of the competition that marketers can then find their differentiator, which is ultimately what will set their brand apart from the competition.

3. Think about Compatibility

There are plenty of ways to understand a customer base, one of which is through brand compatibility. This takes into account everything: the customers’ spending habits, their lifestyle, their media interests – even their general attitude. To this end, marketers will want to focus on the strength of the connection between the purchase behavior of the customer and the brand’s differentiator.

4. Position the Brand Effectively

This goes back to communication, because how well a brand communicates its message to a customer base will ultimately determine its success. But it takes more than merely telling a customer about a product; the marketer needs to establish a relationship with the customer through positioning. And the two keys to successfully positioning a brand are simple: pre-planning and market research.

5. Merge the Business with the Brand

Those most successful brands are also most successful at blurring the lines between their business and their brand. And this goes beyond simply hiring positive employees to represent “service with a smile.” Go into any Apple Store and the first thing a person sees – aside from the sleek devices – is a group of employees who represent the brand to the letter.

While the above list may not be a complete blueprint for how to achieve ultimate success in business, it should provide startups or new entrepreneurs with those fundamental notions to bear in mind during every step of the game. Because without core guiding principals, many businesses languish right from the get go.

5 Major Reasons Why Small Businesses Fail

5 Reasons Why Small Businesses Fail

Running a small business is an exciting venture that can lead to the financial freedom simple employees work their whole lives to attain. However, with the great rewards come great risks that can lead us small business owners to financial failures.

I have witnessed friends and family members pursue their own entrepreneurial dreams only to see them shattered not a year into their short-lived careers, mostly due to a number of fatal but avoidable reasons. Let’s take a look at some of them.

# 1. No Business Plan   

Business Plan

Knowing what your business will be and how you will sell your products or services are not enough to keep it running. You need to have a business plan written out, including (but not limited to) the following:

• your short and long term goals;
• the business’ finances for labor, production equipment, etc.;
• your target markets; and
• marketing.

Having one which outlines every detail will guide your business to the right path.

# 2. Inefficient Management

Inefficient Management

Small business entrepreneurs usually come into their industries with little to no knowledge of handling the multiple facets of a business such as financial management, employee relations, advertising and other essential responsibilities. Educate yourself through short business and finance courses, or hire managers who have expertise in the fields where you are lacking.

# 3. Poor Marketing

Poor Marketing

A small business needs to market its brand considering the tough competition it will face against more established businesses. You need to invest enough resources into promoting your products through the right channels. This is so your target market knows exactly that you can fulfill its needs. Online marketing is a must these days, but you should not ignore the physical reach of traditional marketing methods such as brochures, flyers and business cards.

# 4. Lack of Capital

 Lack of capital

Some entrepreneurs think they will be making profits for their beginning operation cycles, spending most (if not all) of their resources immediately, only to find out later that they will not have enough funds to start the succeeding cycle/s. Consider every possible cost (overhead, production, equipment, etc.) and save enough money that can be used for at least one fiscal year despite poor sales.

# 5. Bad Location

Bad Location

It is not enough to set up a store at a location with high human traffic or with a very cheap lease. Opening a restaurant near a school campus can seem like a good idea, but don’t expect too many customers if the food is expensive and there are much cheaper alternatives around.

You need to consider your target market and their habits, as well as the direct competition in the area. Don’t be afraid of spending on prime location, as the increased rate of customers coming into your store and making a purchase will make up for the initial cost.

Ultimately, it is a matter of planning out your overall strategy, assessing your own strengths and weakness, and keeping a good eye on all of your resources—be it financial or human. Consider each of these possible pitfalls, and you can find your small business not just surviving, but thriving in this competitive world.