With market share, the goal to be and stay number one can be a great growth driver. Companies that have mastered brand loyalty offer some of the safest investments with the best profit and growth prospects available.
This means better returns for investors with the added protection from economic downturns. Of course, most companies don’t have the marketing strategy figured out to grow brand loyalty.
As investors, we should avoid companies with little to no customer loyalty. But when we do come across a company that has built a growing loyal customer base, it’s worth a second look and possibly an investment.
Defining Brand Loyalty
The American Marketing Association defines brand loyalty as:
1.The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category. 2.The degree to which a consumer consistently purchases the same brand within a product class. – AMA
As investors, we want to find companies that people are choosing of their own free will. Given two or more options, people will always buy Company A. These are the brands that people will buy for life, tell their friends and family about, and act as human billboards. If it happens often enough, the company builds a consistent loyal base that grows exponentially. Continue Reading…
We’re big advocates of do-it-yourself finances and believe everyone has the ability, if they wanted. That doesn’t mean we’re against getting some help from time to time. Let’s face it, not everyone is equipped, comfortable or willing to do their finances themselves. If that’s the case, it’s a good idea to find a financial advisor to help you along the way.
The days of getting a Social Security statement in the mail have come to an end. At least for everyone under 60 years old. About a year ago the Social Security Administration stopped sending annual statements to save money on budget cuts. It worked. But it left several million people without easy access to their statements.