Isn’t it strange how brand loyalty works?
Sweden is having a cost of living crisis at the moment, as are many countries worldwide. Interest rates are soaring, the price of energy and fuel is skyrocketing, and prices are rocketing.
One Swedish supermarket chain has prices that are much higher than the others, despite their suppliers saying they are receiving no more money than normal for their goods. As a result customers have started shopping elsewhere. Said chain has acknowledged that they have to look at their pricing and are having more special offers than normal. Customers, however, are not going back to shopping there. The reason? People who are already struggling feel exploited.
That got me to thinking about reasons we are loyal to shops and brands. I take all my shoe/key/leather repairs to a shop that has always done small work (extra holes in belts, quick stitching on a bag) for free. They have made so much more money from me over the years than they would have if they had charged me for the little things.
Decades ago, my bonus dad applied for loans to start a business at two local banks. One turned him down, one took a chance on him. His business was hugely successful and he made a fortune. The bank that turned him down spent those same decades trying to get him to transfer his business. He never would. Similarly, when I first moved to Sweden I had all my savings and pension money with me (quite a healthy sum) but the bank ‘everyone else goes to’ laughed at me for trying to open a bank account before I had a permanent job. I went to a smaller bank who showed me only kindness and went out of their way to help me. I still bank there today, despite the other bank and my employer getting me to switch. I will never change.
I asked my students what kept them going back to stores time after time, even when they had moved house or work and it was inconvenient. Some of the replies:
- they let my child use the staff toilet
- they allow me to keep my heavy parcels behind the counter while I shop
- they offered me a refund when they didn’t have to
I wonder how many brands have unknowingly lost customers due to purely following the almighty buck?