Brand Loyalty- The Truth About Cats and Dogs

Cats & Dogs
Two perspectives- Advertisers want dogs; consumers are cats

In an advertiser’s febrile fantasy, consumers come home, grab a comfy sofa and cuddle up with their favorite brand. Advertisers like loyalty. Loyalty is good: it is much cheaper to retain a customer than to obtain a new one. And it is a good bet that a loyal customer will increase her consumption, meaning that she will be more valuable with every passing year.

Or so the story goes.

Consumers have their own view of the world. Like cats, they don’t really care that much for loyalty and, like cats, they go where their interests lie. And the truism, of course, is that you can buy a customer’s loyalty for 25 cents.

We are a fickle bunch. How fickle? Really, really fickle.

In 1996 Joel Rubinson and Allan Baldinger published one of the most amazing pieces of research ever: Brand Loyalty: The Link between Attitude and Behavior in the Journal of Advertising Research. What was amazing? The study contacted 4,000 people and asked them about their buying loyalties, then, a year after, recontacted 56 percent of them again and asked them the same questions about their buying loyalties.

For the study, “low loyals” had anywhere from 0 to 9 percent probability of purchasing the brand; “moderate loyals” had a 10 to 50 percent probability and “high loyals” had more than 50 percent probability of purchasing the brand. This study covered 27 brands.


Cats Win





Seventy-four percent of consumers were not loyal at all. But, at least the number of highly loyal consumers held from year to year at 12 percent. Or did it? The most interesting aspect is how quickly a brand can lose its loyal consumers. Take a look at what really happened from year one to year two.




Yep, the percentage of consumers who were highly, medium and low loyal remained the same. But, of the 12 percent of consumers who were “highly” loyal to their brands on year one, only 50 percent remained highly loyal. Another 50 percent had become either medium or low loyal.

So, in a year’s time, a brand could lose 50 percent of its loyal consumers. How bad is that?


4 Definitive Examples to Understand and Serve Your Customers

4 Definitive Examples to Understand and Serve Your Customers

These four company case studies have yielded success across industries Running on Innovation, A New Solution for City Dwellers, Focus on Customers. Learn from these companies that are doing it right. Recently, I attended a public forum called Healthcare in the 21st...

4 Components of Small Business Agility in a Diverse Market

4 Components of Small Business Agility in a Diverse Market

Small business leaders need to understand diversity in order to be connected and create opportunities for success   The model of how to effectively navigate business leadership is changing. For decades stability and homogeneity were hallmarks of business across...

Top 7 Ways to Show Your Customers You Care

Top 7 Ways to Show Your Customers You Care

Even a small gesture can go a long way with a client and will be appreciated.   Nowadays, having a good product or service isn’t enough. Relationships are the differentiator. Today many companies are making investments in customer advocacy and loyalty programs...

Video Gallery

Modern version of Stoic philosopher Epictetus
A professional leads a cybersecurity training session for employees, emphasizing best practices. The photography captures the engagement of participants, showcasing the educational aspect of safeguard
Hispanic bearded male businessman trainer teaching coaching new recruitment African American female businesswoman employee in formal suit sitting studying learning company graph chart strategy
The presence of a robot using a computer. Office keyboard being typed on by machine. future IT group,.
Latino Streetwear Entrepreneur Latin Biz Today
Chef Lorena Garcia cooking with a wok
Latina Chef Loren Garcia
Latin Biz Today partner Johanna at the San Sebastián Festival


Which item currently represents the greatest hurdle in the growth of your business?(Required)

Sign Up for the Latin Biz Today Newsletter

PR Newswire

Featured Authors

Innovation & Strategy


Four Basic Principles for Raising Capital

Four Basic Principles for Raising Capital

Outside investors want to understand a business' strategy as well as its financial statements.   The need to raise capital from outside investors requires a great deal of preparation across multiple dimensions. Among many things, investors look to understand...









Work & Life


Health & Fitness

Travel & Destinations

Personal Blogs

Pin It on Pinterest