Satisfaction alone won’t drive your business forward—loyalty will.

Companies have been measuring customer satisfaction since the 1750s, and by the 1980s, it became a standard practice.

Here’s the thing: measuring customer satisfaction isn’t an end in itself. It’s a means to achieving customer loyalty.

As the old saying goes, “Satisfaction is worthless, loyalty is priceless.”

→ At MSW Research, we’ve found that satisfaction and loyalty share a significant relationship—a 1 to 3.3 ratio in explaining market share movements.

The focus on building loyalty is vital because acquiring new customers is 5 to 20 times more expensive than retaining existing ones.

Therefore, investing in customer satisfaction to foster loyalty isn’t just good practice—it’s smart business. 🎯

Brand health hinges on two dimensions: market strength and perceptual strength.

These dimensions come together in a two-by-two grid:

⭐ Top Right: High-Performance Stars
These brands excel in both market and perceptual strength.

🎯 Top Left: Niche Brands
High perceptual strength but low market strength.

🔖 Bottom Right: Generic Brands
High market strength but low perceptual strength, often seen as copies with a price point advantage but lacking perceived worth.

❓ Bottom Left: “So What” Brands
Low in both market and perceptual strength, this quadrant is both a graveyard and a nursery.

New Brands start here and might migrate to become high-performance stars, or migrate to become niche brands or generic brands. All new brands invariably start in the bottom left quadrant.

However, declining brands also move towards this quadrant until they eventually exit the marketplace.

Understanding these dynamics is crucial for brand strategy and growth.

At MSW Research, we help brands navigate these quadrants to maximize their potential and longevity.

So, are you taking care of your brand’s health?

Cutting back on advertising is a surefire way to lose market share in the auto insurance industry.

People only think of auto insurance in two situations:

→ After an accident claim is poorly handled
→ When they receive a significantly higher bill for the next 6-month period

In both cases, drivers start looking for alternative providers.

And what brand are they going to turn to? The one they recognize.

Take GEICO for example.

GEICO’s preference dropped by 15% over the last two years. Why?

Two Reasons:

1️⃣ : GEICO cut back on their media spend, resulting in a loss of share of mind. Meanwhile, State Farm introduced ‘Jake from State Farm’ in 2020 and became the main beneficiary.

2️⃣ : GEICO had the largest rate hikes among all insurance companies. The promise of “15 minutes can save you 15%” no longer holds, as all brands now claim similar price advantages.

→ It’s possible to manage higher fees if you over-invest in building mental availability, but not when cutting back on it.

GEICO’s experience is a cautionary tale for any brand considering scaling back on advertising.

Want to keep your brand top of mind? Consistent and effective advertising is key.