Wednesday, April 15, 2009

Why Are We Loyal to a Brand

Recently, I've been writing a lot lately on here about different brand and package redesigns. And just this last week, I received news from Netflix that they were raising their prices for Blu-Ray subscribers. It wasn't just a $1 a month, it was $4 a month. That's almost a 20% increase in cost! So, as a loyal customer over the last seven years, I had to ask myself "why am I so loyal to Netflix?" I used to recommend them to all my friends and really did love the service, but everything has a value. So do I downgrade my service or cancel it all together? That I can't say yet. Regardless, they've lost any positive word of mouth marketing that they were getting from me and I guess actually I'm negatively campaigning against them. That said, how important is it that customers love a service or a company? Does it really increase business? I'm sure you would all agree it does. How many times have you been referred to a company or business and loved the outcome? If so who were they?

I want to say, I did communicate with Netflix and let them know my dissatisfaction with their decision. On their blog alone, there are 1100 posts and many groups have popped up on Facebook and Myspace expressing distaste in their decision. Here's the bad sign, Netflix has chosen to not respond. They've offered no further justification or breakdown of costs, only silence. I personally feel their action or inaction will have a long term effect on their business. These days, customers expect to be appreciated and not looked at as "just customers." Don't you agree?

So, I'm curious, why are we so loyal to certain brands? I know studies show customer service, product innovation, etc. But I want to know what brands you are loyal to and why. Click on post a comment at the bottom this post to join the discussion.

4 comments:

Anonymous said...

Too bad about Netflix. I've considered looking into them myself.

A brand I'm pretty loyal to is Apple. I'm not sure why. I've always been an apple user and love all of their products. Of course I loved them from the first time I saw the "1984" commercial. The funny thing is that people follow Apple like zombies. I'm one of them. This has really brought me to think about why I'm so loyal to them without question.

Anonymous said...

People use many things to come together... fashion (labels), music, art, language, really ANYTHING... so why not a electronic device manufacturer? Or a entertainment distributor?

brands allow us to associate with one another.

brands give us the basic human need - to belong.

Anonymous said...

L'Occitane --- the best bath/beauty products in the world! Everything I have bought from there lasts forever and is worth the price. I'm loyal because this is a great product.

Anonymous said...

I'm usually loyal to a brand because of the reputation they've built with me. I've always had good service/products from Starbucks, Banana Republic, and a few mom and pop establishments. I've often been disappointed with Marble Slab Creamery and Walmart and avoid them when possible. Training employees to give good customer service is so important. If you can't say something nice to your customer, keep your mouth shut — something people should learn. And don't sell something that is junk.