Consumers Expect More, Get Less From Brands: Survey
Most brands invest heavily to build loyalty among their consumer audience. But according to the ninth annual Brand Keys Consumer Loyalty Index, released yesterday, marketers just aren’t meeting consumers’ rising standards.
“Consumer expectations are growing 2.5 times faster than brands are able to keep up,” said Robert Passikoff, president of Brand Keys, Inc., New York City, which produces the Index.
The average increase in consumer brand expectations for the 222 brands surveyed by the research firm was nearly +6%. The average ability of brands to keep up with consumers’ rising expectations was -13%.
The highest expectations were found for Long Distance Providers, Mobile Telephones, Wireless Providers, Car Rental Companies, and Search Engines. Leading brands in those categories included: Verizon, Samsung, Treo and Blackberry, Cingular, Avis, and Google.
Lowest expectations were in the categories of Coffee and Doughnut stores, Satellite Radio, Pizza, Overnight Parcel Delivery, AM News Shows, and Major League Sports, where the most successful brands were Starbucks, XM, Domino’s and Papa John’s, UPS, The Today Show and Good Morning America.
The top 10 largest gaps, the difference between what consumers want and what brands actually deliver, appeared in the following categories:
1. Long Distance Providers (30%)
2. Mobile Phones (28%)
3. On-Line Music & Books (26%)
4. Gasoline (25%)
5. Wireless Providers (25%)
6. Office Copiers (25%)
7. Car Rental Companies (24%)
8. Major League Sports (23%)
9. Quick-Serve Restaurants (21%)
10. Airlines (21%)
“Profitability is governed by a brand’s ability to meet or exceed customer expectations,” Passikoff said. “An inability to do so can result in them turning into something less than actual brands. Think of these products as ‘Category Place Holders’, moving one step closer to becoming a commodity. That’s not where you want to wind up.”
For the complete list of 2005 Customer Loyalty Award winners, visit Brandkeys.com/awards/cli05.cfm
