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Is Brand Loyalty Dead?

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In the Madmen era, the marketing playbook was to use mass media, strong ads, and a powerful brand to add customers.

And if you did it right? A customer would be loyal for life, always showing a preference for your brand above all others. This brand loyalty was a recipe for increased customer lifetime value (CLV), as well as a massive boost to the market share and profits of consumer goods companies.

The New Ad Era

In today’s world, the playbook has changed.

In most situations, there are no longer two brands competing head-to-head on grocery shelves, battling it out to win the minds and hearts of consumers. Instead, customer transactions are increasingly digital – and it is there that things can be tracked, compared, analyzed, and personalized. As a result, a new competitive landscape has emerged where the concept of brand loyalty is under siege.

Today’s infographic comes to us from RaveReviews and it asks the question: is brand loyalty “dead”?

Is Brand Loyalty Dead?

If brand loyalty is not dead, it may be on its last legs. Today, only 23% of people say they have a relationship with a brand – a percentage that has been shrinking for years.

With a connected world and so many options at our fingertips, sticking with a single brand probably seems like an antiquated concept to many consumers. After all, if one can buy the same product from a vendor with better reviews or for a lower price, then why not?

Consumer Upside

While some people may yearn for an era where they could trust the brand they loved through the thick and thin, a decreased reliance on brand loyalty creates other potential benefits for consumers:

It levels the playing field
Brands are no longer entrenched in their positions as market leaders, allowing new and upcoming competitors to also vie for the hearts and minds of consumers. This ultimately means better products and more experimentation, and less blind loyalty to the brands of the old guard.

It motivates brands to listen
Brands can use the power of big data to monitor consumer preferences, and to react accordingly. Further, with the emergence of social media, consumers can be heard – and brands can respond to these concerns directly.

It encourages healthy competition
Product quality is more important than gaining emotional affinity. As a result, substandard products will not last long on the shelves.

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Markets

Will Tesla Lose Its Spot in the Magnificent Seven?

We visualize the recent performance of the Magnificent Seven stocks, uncovering a clear divergence between the group’s top and bottom names.

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Will Tesla Lose Its Spot in the Magnificent Seven?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

In this graphic, we visualize the year-to-date (YTD) performance of the “Magnificent Seven”, a leading group of U.S. tech stocks that gained prominence in 2023 as the replacement of FAANG stocks.

All figures are as of March 12, 2024, and are listed in the table below.

RankCompanyYTD Change (%)
1Nvidia90.8
2Meta44.3
3Amazon16.9
4Microsoft12
5Google0.2
6Apple-6.7
7Tesla-28.5

From these numbers, we can see a clear divergence in performance across the group.

Nvidia and Meta Lead

Nvidia is the main hero of this show, setting new all-time highs seemingly every week. The chipmaker is currently the world’s third most valuable company, with a valuation of around $2.2 trillion. This puts it very close to Apple, which is currently valued at $2.7 trillion.

The second best performer of the Magnificent Seven has been Meta, which recently re-entered the trillion dollar club after falling out of favor in 2022. The company saw a massive one-day gain of $197 billion on Feb 2, 2024.

Apple and Tesla in the Red

Tesla has lost over a quarter of its value YTD as EV hype continues to fizzle out. Other pure play EV stocks like Rivian and Lucid are also down significantly in 2024.

Meanwhile, Apple shares have struggled due to weakening demand for its products in China, as well as the company’s lack of progress in the artificial intelligence (AI) space.

Investors may have also been disappointed to hear that Apple’s electric car project, which started a decade ago, has been scrapped.

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