Social distancing and stay-at-home orders have resulted in increased levels of consumer anxiety, according to Robert Passikoff., president of Brand Keys. “A drink provides an opportunity to relax and, perhaps, provide a sense of normalcy. And the holidays, combined with an increased number of virtual ‘gatherings’ and parties, has invigorated the category.”
Brands that have generated high levels of customer loyalty will be the beneficiaries of the anxiety that comes with social distancing and stay-at-home orders, Robert Passikoff, president, Brand Keys. According to Brand Keys 2020 Customer Loyalty Engagement Index, the alcoholic beverage brands with the most loyal customers are:
— Vodka: Svedka
— Gin: Bombay Sapphire
— Whiskey: Jack Daniels
— Single Malt: Glenfiddich
— Tequila: Jose Cuervo
— Rum: Bacardi
— Light Beer: Miller Lite, and (ironically)
— Regular Beer: Corona Extra
Market Disruptions Are Emotional
During previous market disruptions — ones that came close to the magnitude of the coronavirus pandemic — successful brands recognized that not only had the marketplace but consumers themselves, changed dramatically.
“This pandemic has changed consumers’ world and brand views. Their decision processes — more emotional than rational– show that emotional decision making runs higher than ever and will likely to continue to do so. Views and values consumers use to assess brands are wildly different than they were just four months ago,” Passikoff said,
Loyalty Is Critical To Brands Surviving This Pandemic
Loyalty can’t cure the virus, but it has proven itself to be an effective remedy to market crises. Loyalty is alive and well, just very different in 2020, and very, very different since the COVID-19 inserted itself into the marketplace and the daily lives of consumers, said Passikoff.
Loyalty has evolved to meet the expectations of more sophisticated and more connected, and now disconnected, consumers, he added. It’s more complex to define and to measure, and marketers are going to have to place loyalty at the top of their Key Performance Indicator (KPI) list if they want to come out of this maintaining — even growing — the customer base.
Brands must adapt and identify new strategies to accommodate a vastly changed, more emotional marketplace. What’s been historically and independently-validated, noted Passikoff, is that real engagement and loyalty metrics — psychological inquiry and higher-order statistical analyses — identify emotional aspects of real consumer decision-making they will exist in the next 12 to 18 months. That will be critical to guarantee brand survival, he said.