Since the start of the pandemic, brand loyalty has started to disappear. There are a few reasons why, including a current bottleneck on supply chains and an uptick in prices that push people to competitors, simple exposure to other brands. For businesses that work with and sell heavy equipment, navigating this new terrain of brand loyalty can be tricky, and its presence and absence can both have an impact on their sales and marketing campaigns. It’s important to understand the benefits or drawbacks of brand loyalty and how to navigate this current, uncertain and disloyal market.
Here are a few pros to brand loyalty and how they can benefit your business:
When buyers are loyal to a brand, it can increase the chances of them feeling loyal to the brand’s seller as well. If your business sells or manufactures a brand that some buyers prefer, it can help you establish stronger relationships with those buyers. That can result in repeat purchases and, if you’re a dealer, increase the likelihood that you will benefit from parts and service revenue.
Brand loyalty can help create brand promoters who tell others about the brands they prefer and the benefits they have to offer. These brand ambassadors can help improve a brand’s awareness and make life easier for those who sell or maintain those brand’s products.
Studies have shown that 43% of consumers spend more money at businesses they’re loyal to. If you’re selling a brand that has a large brand loyalty following, you might have an easier time selling it, even if it’s more expensive than competitors. Brand loyalty is a great way to have some stronger flexibility in your pricingduring a sales negotiation.
Here are a few cons to brand loyalty and how they might impact your business:
If someone prefers a single brand that you don’t offer, it can limit what you have the ability to sell. This can give you poor maneuverability during a sales call, causing buyers to become disinterested in what you have to offer or turn you away completely. This issue can also make it difficult to find new prospects in your area who might have an interest in the products or services you sell.
If a buyer is loyal to a brand you sell, and that brand suddenly discontinues a product or piece of equipment, it might have a negative impact on your relationship with the buyer. That’s especially true if the buyer prefers a single brand over all others. If your dealership focuses mainly on selling and providing maintenance for a single brand, approaching your buyers early on to offer them alternatives for the discontinued piece of equipment may be key to retaining their business.
Some buyers who are loyal to a particular brand are sometimes blind to the benefits of other brands for the sake of convenience and habit. They’re not always willing to listen to sales people of other brands and what they have to offer. Though this can create a disadvantage for your own business, it can also create a disadvantage for the buyer, who might not have the best equipment for the job.
Fortunately, during a time when brand loyalty is eroding, it’s much easier to overcome brand loyalty than before. In fact, the current brand loyalty climate has created the perfect opportunity for shifting buyer behavior and conducting conquest sales.
That means talking with a business about other brands they might not have tried before and showing them the benefits in different equipment purchases.
But the best way to fight brand loyalty, especially during a time where loyalty may be uncertain, is through the use of expert data. Using data products, like RigDig BI and EDA, dealers, aftermarket, and OEMs have the ability to target those who are loyal to brands, as well as those who don’t seem to have a preference. You can see what types of brands certain businesses already own and find new prospects in your trading area you might not have considered previously.
Turn any brand loyalty disadvantage into an advantage for your business by finding the right data for the job and applying it to your selling strategy!