The Realities of Brand Loyalty

Wundermann, a member of the WPP Group, has recently announced the results of a groundbreaking research initiative, the Wundermann Brand Experience Scorecard, which demonstrates the key role that consumer-brand experience plays in the brand building process.

While traditional brand studies tend to focus on brand perceptions among the general public, the Brand Experience Scorecard measures the 'quality of lived experience' among 'brand users', revealing which brands consumers believe delivers substance and value in their daily lives.

According to the new research, the top five Experience Brand leaders in the USA for 2002 are Saturn, Gateway, Wal-Mart, Palm and Costco. Among the biggest losers are banks, car rental and cable companies.

'Customers remain loyal to a product only if the quality of their daily experience with it is positive and growing' said Wundermann CEO, Daniel R Morel. 'Companies are starting to realize that building brand loyalty has less to do with traditional brand imagery and everything to do with frequent, customized one-to-one communication and interaction with customers about their specific needs. Wunderman's research - with the customer at the center - sets the stage for all marketers to create a new generation of experience driven communications.'

'By using experience, rather than perception, as our gauge, Wundermann's rankings differ sharply from traditional brand studies, which are typically dominated by big advertisers such as Coca-Cola and Nike. These are notably absent from the top ranks of the Wundermann Brand Experience Scorecard', added Chip Walker, Managing Director, Strategy and Insights. 'These findings come at a time when marketers are feeling the squeeze of shrinking advertising budgets, and a paradigm shift in the psyche of the American consumer brought on by a growing distrust of corporate America. Consumers are tired of brands that make promises in ads, only to break them in reality. This research not only identifies the brands that truly 'walk the talk', it offers marketers an important new diagnostic tool to zero in on the aspects of the brand experience that trigger brand loyalty.'

The study polled more than 10,000 consumers regarding their usage of 1,993 popular brands across 190 industry categories. The Scorecard ranks the nation's leading brands on three key metrics, the major drivers of brand experience - performance, treatment and community - and demonstrates how these drivers work together to build brand loyalty. The research will be conducted in Europe and Latin America next year.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.