Every January we field our Customer Loyalty Engagement Index. This past January we had consumers assess 1,231 brands in 114 B2C, B2B, and D2C categories. Because categories, by their very nature, are different, this annual survey (2024 was our 27th year) provides a real picture of how a brand performs relative to its direct competitors. In the specific category in which it competes. And what marketers can do, strategically and from an engagement and communication POV, to help the brand make money – marketing being a business and not a hobby, after all.
So, “Why,” I hear you ask, “Bring it up now? It’s September!”
Well, last month, August, we had consumers assess brands again. This time 1,465 brands in 142 categories. So slightly more brands than January and this version has a different name – the Loyalty Leaders List. But the really big difference is this one examines brands from a cross-category perspective. See, while brands routinely compete within their categories, conducting an annual cross-category brand analysis (this is our 16thyear) is important for several reasons. 
By analyzing brands across different categories, companies can gain a holistic view of market trends, consumer behavior, and competitive dynamics. This broader perspective can help identify patterns and insights that might not be apparent within a single category.
Comparing performance and strategies across categories brands can uncover opportunities for expansion or diversification. That can lead to innovative product development or alternative market entry strategies. Cross-category analyses allow companies to benchmark brand performance versus other industry leaders and help identify best practices. Lessons learned in one category can often be applied to others, leading to improved brand strategies and processes. If you pay attention and you have measure like the Loyalty Leaders.
Consumers (because they are consumers) engage with multiple categories and brands all the time, so analyzing cross-category behavior can help brands understand how preferences and perceptions shift across different contexts. That can assist in more targeted marketing and product development. As well as helping to position a brand more effectively. By understanding how different categories influence consumer perceptions and expectations, companies can identify vulnerabilities that might not be visible within a single category and, therefore, craft more nuanced and compelling brand strategies and marketing tactics.
Consumer brand-assessments are ranked according to the loyalty strength they exhibited. This year’s analysis found consumer allegiance and brand strength and vitality almost entirely driven by expectations consumers hold for their Category Ideals, which are essentially the yardsticks for brand success. Both category-specific and cross-category analyses can only add to your insights and your bottom line.
Identifying what consumers truly expect is a critical part of all the brand surveys we conduct. Thirty plus years of research have proven the better brands are able to meet customer expectations, the better customers will behave in the marketplace toward those brands. And, axiomatically, the more profitable a brand will be. Problematically, expectations increase every year – on average by 30%. Brands only keep up by 8-12%, exposing the gap between what consumers truly desire and what they feel a brand delivers.
It also explains why some brands do better – or worse – than others. On our annual list and in the day-to-day marketplace. This year, the cross-category analysis identified these 10 brands as being best at meeting their customers very high expectations. Numbers in parentheses indicate rankings YOY:
- Apple (Smartphones, #1)
- Amazon (Online Retail, #2)
- TikTok (Social Networking, #5)
- Domino’s (Pizza, #3)
- Netflix (Video Streaming, #4)
- YouTube (Social Networking, #11)
- Samsung (Smartphones, #8)
- Levi Strauss (Apparel Retailers, #37)
- Dunkin’ (Coffee, #14)
- Mattel (Toys, #42)
And because a brand’s ability to meet expectations ultimately determines their rank, it explains why (and how) loyalty expands or contracts. And why brands move up (or down) the list. Also, as a kinda FYI, why it’s so big an accomplishment when a brand breaks into the top 100.
Mattel moved up 32 ranks this year. Not so surprising when you remember how last year’s voluptuous “Barbi Bounce” continues to give an added boost to Mattel’s momentum. Levi Strauss is up 29 spots because they designed marketing to better meet what consumers expected à la direct-to-consumer (D2C) product delivery. Ford’s +23 was engineered to meet consumer expectations regarding post-purchase remote service options.
Chobani moved down 18 spots this year feeling the effects of expectation shifts related to diet and lifestyle. Sam’s Club was -16, hurt by revoking free shipping for online orders under $50. “Free shipping” is something consumers have kinda come to expect. Pretty much everywhere. And when consumer expectations aren’t met, initial delight becomes anticipation, which, when not delivered upon, quickly turns into disappointment. And brand loyalty is always the first victim of disappointment.
If you want to see the top 100 2024 Loyalty Leaders List, you can find it here. For your brand’s ranking or information about integrating predictive loyalty and expectation metrics into your marketing and branding activities, feel free to reach out to me here. It will help you avoid disappointing your consumers and your shareholders.
I’ve quoted this before, but I think it’s worth repeating: Alexander Pope wrote, “Blessed is he who expects nothing, for he shall never be disappointed.” But to be fair, Mr. Pope didn’t have to deal with 21st century consumers who are more easily disappointed. Understanding their expectations and learning how to better meet them – whether category-specifically or cross-categorically – will have consumers and profits following your brand very, very closely.
Measure the right things, and you can expect nothing less.
Photo by Natalia Y. on Unsplash
