Online retailers
It’s a tough choice between Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY), the two premier online marketplaces in the U.S., but Brand Keys gave the crown to Amazon. The key for Amazon is its shipping service known as Amazon Prime, which offers lower shipping rates for top-tiered customers and hooks its most loyal customers to its platform. It therefore shouldn’t be a surprise that Brand Keys ranked Amazon as its top overall brand in 2011 as well.
What’s the takeaway?
It isn’t enough just to know that these are the top companies in retail with regard to brand loyalty. We need to dig deeper and understand what they’re doing, so that we might better understand what “formula” makes for a successful retailer.
One key takeaway is that price is extremely important to the consumer. Wal-Mart Stores, Inc. (NYSE:WMT) being able to use its clout to undercut smaller local retailers, as well as Kohl’s Corporation (NYSE:KSS) discount and promotional events, are what initially drive customers into the store. After that, it’s up to those retailers to provide the experience to keep them coming back. For Wal-Mart Stores, Inc. (NYSE:WMT), it’s an incredible selection; for Kohl’s, it’s a credit card that can keep consumers loyal to the brand.
Another important factor is that what consumers perceive to be popular will become popular with them. The fact that J. Crew sales have jumped because Michelle Obama wears the brand provides ample evidence that consumer buying habits can be easily influenced with the right product and ambassador.
Finally, the importance of technology and catering to a younger generation of buyers cannot be emphasized enough. From The Home Depot, Inc. (NYSE:HD) with its technological upgrades at the point-of-sale to Dicks Sporting Goods Inc (NYSE:DKS) with its mobile applications meant to drive a pleasurable direct-to-consumer purchasing experience, technology is becoming often the first point of contact between retailers and the consumer. As expected, Amazon.com, Inc. (NASDAQ:AMZN) takes the cake when it comes to this form of interaction, but all six companies here have done an admirable job at improving their direct-to-consumer operations.
The article The 6 Top Retailers for Inspiring Brand Loyalty originally appeared on Fool.com and is written by Sean Williams.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. The Motley Fool recommends Amazon.com, eBay, and Home Depot. The Motley Fool owns shares of Amazon.com and eBay Inc (NASDAQ:EBAY).
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