“A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another.” – Seth Godin
As the trend rolls out, more and more young entrepreneurs enter business world with their own version of business. They present a way fresher take on how a business is run, continuously innovating to have a better grasp on the way they engage with their customers. Customers themselves wouldn’t mind; to them, the more businesses available out there, the more varied their options would be.
To the established brands, however, this could spell doom. This situation forces them to revolutionize the way they conduct business lest they risk getting the boot. The fresher business those young entrepreneurs present will be much favored compared to the old, outdated products old brands are sticking with. The sudden exodus from a brand customers were previously loyal to is called brand switching.
Related: 4 Steps to Overcome Branding Challenges
There are several factors that will cause a movement of brand switching. Some new businesses could sell the same items as a more established brand. The key difference would be pricing; a new and fresh brand will emphasize on experience rather than the product itself. The product could be on the same level with others in terms of quality but the experience that comes with it makes everything worth every penny.
New businesses would apply a different approach, especially in terms of marketing efforts. Young entrepreneurs understand that a businesses need to humanize their customers so there would be better customer service, aftersales, and more intimate communication with customers to be expected. Another characteristic of modern businesses is the use of social media celebrities. A company at odds with their chance to survive the rise of new startups could implement changes required to embrace the current wave of trend.
They need to expand their brand awareness by engaging their customers and get them tightly and closely involved with the company’s internal development.
Related: Why Brand Switching Is Dangerous for Your Business
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