BE MY GUEST by Dan Hill
company loses twice over. Current customers pay less for goods they were already buying—and may not buy again at full price. As for new customers who bought because of a deal, their loyalty is less real than the profit margin sacrificed.
95% of people’s thought activity isn’t fully conscious and hence is intuitive and operating in the realm of emotion.
6. Brand loyalty is at risk
because pride takes a hit. Loyalty is a feeling. And how are loyal customers supposed to feel when they see the price is lower for everyone, not just for them? Or lower for new customers than for them? The
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7. A brand on sale is a brand with an integrity problem. A key way we judge the trustworthiness of others and companies is the degree to which they behave consistently. With price-leading advertising, a company’s identity becomes fuzzy. Suddenly, you are either a discount brand or you’re signaling a lack of confidence—in business as in dating, that is not attractive. Leading with price suggests you have nothing else to say or show in
your advertising. Price as your main attribute doesn’t mean anything. So the marketing battle is fought in terms of price and distribution. Loyalty ceases to be a barrier to entry. Surprise, hope—and every other positive emotional dynamic required to engage the customer— comes crashing down. ● Dan Hill is the founding president of the research firm Sensory Logic Inc. and the author of Emotionomics: Leveraging Emotions for Business Success. The points in this column are drawn from his new book, About Face: The Secrets of Emotionally Effective Advertising. You can reach Dan by email at dhill@sensorylogic.com or visit www.sensorylogic.com.
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