Learn More about Increasing Brand Value with Customer Loyalty Programs
- The market for consumer attention (or “eyeballs”) has become so competitive that attention can be regarded as a currency. The rising cost of this ingredient in the marketplace is causing marketers to waste money on costly attention sources or reduce their investment in promoting their brands. Instead, they should be thinking about how to “buy” cheaper attention and how to use it more effectively.
- The cost of attention has increased dramatically (seven‐ to nine‐fold) in the last two decades.
- In addition, the top 25 most meaningful brands outperformed the stock market by 133%.
- A meaningful brand has a 46% higher “share of wallet” – defined as how much a person spends on a particular product – than a low-scoring brand.
- A meaningful brand offers three types of value to consumers: marketplace benefits, which include the value delivered by its products; personal benefits, such as what a brand does for individual customers; and collective benefits, which include what the brand does for society as a whole.
- For every 10% increase in meaningfulness, a brand can increase its purchase and repurchase intent by 6% and price premiums by 10.4%
- In the US, for instance, respondents only said they trusted 22% of brands. Fewer than 3% were perceived as having a positive impact on people’s sense of well-being.
- “[Overall] 74% of brands could disappear and people wouldn’t care.”
- Two thirds (66%) of consumers around the world say they prefer to buy products and services from companies that have implemented programs to give back to society. They prefer to work for these companies (62%), and invest in these companies (59%).
- A smaller share, but still nearly half (46%) say they are willing to pay extra for products and services from these companies.
- If Edelman’s trust index shows that we trust our friends less today, then we probably trust our brands and their leaders even less.
- “Building Social Currency is probably the most important investment companies can make to create value for themselves,” says Erich Joachimsthaler, Founder and CEO of Vivaldi Partners.
- The methodology was developed in conjunction with MIT Sloan statisticians and Lightspeed Research. Brand Social Currency is defined as the extent to which people share the brand and/or information about the brand as part of their everyday social lives at work or at home. It is made up of six key dimensions or “levers”—Utility; Affiliation; Identity; Conversation; Advocacy; and Information.