Building a brand takes time — and money. Lots of money, judging by the $5.25 million CBS reportedly charged for a 30-second commercial during Sunday’s Super Bowl.
The football game featured ads from companies consumers might not have heard of before and from companies that have been around for decades. Among the latter group, brands are telling consumers that “you know us, you’ve trusted us, and we’re the same good guys we’ve always been.”
Consumers’ expectations rise annually by an average ranging from 2% to 25%, according to Robert Passikoff, president of brand consultancy Brand Keys. Commenting on the firm’s 2019 customer loyalty engagement index, Passikoff said that “Trust…has become the connective tissue between brands and customer loyalty.”
Expectations for trust, he added, are up across all product/service categories and brands an average of 250+% year over year. Meanwhile, customer concerns regarding privacy, security, and brand transparency have reached a tipping point.
Calling the increases in trust expectations an “unprecedented spike,” Passikoff notes that loyalty to a brand is “a fusion of emotional engagement, trust, and an ability for a brand to engage.” He also noted three “fiscal realities” of consumer loyalty that are hugely important to companies:
It costs nine to 11 times more to recruit a new customer than to keep an existing one.
An increase in loyalty of only 7% can lift lifetime profits per customer by as much as 85%
Depending upon the sector, an increase in loyalty of just 3% is equivalent to a 10% across-the-board cost reduction program.
Brand Keys’ customer loyalty engagement index is based on a survey of more than 51,000 U.S. consumers who self-select and rate the products and brands they use. This year’s survey identified 10 brands (from a total of 822) that regularly rank first in their categories — some have held that ranking since the time the category was established.
Here’s the list (visit the Brand Keys website for a complete list of 85 categories and the top company in each):