Best and Worst Brand Loyalty in 2013

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Dec. 23 (Bloomberg) – Managing Partner at Fidelum Partners Chris Malone and Bloomberg's Julie Hyman examine the correlation between customer loyalty and stock performance of a company in "On The Markets." They speak on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

Mark when you look at brand loyalty, do you see this?

Over the medium to long term, we absolutely do, and we find customers who are loyal happen to be making them more profitable.

They do not have to rely as much on price or discounts and promotions.

It causes a lot of customer returns, so in the longer term, it leads to greater performance.

A lot this holiday season.

Without a lot of a do, panera is one of those that has the best customer loyalty.

People are not christmas shopping there, but they are going there when they are shopping, doing their shopping, to eat.

What is it that panera does that gets people loyal to the brand?

The research we did for our book has a customer loyalty juggernaut, and the way they have done it is by making a lot of connections in their community.

You have not seen them on television am a competing with price, but they are going to the communities, connecting with local charities, offering leftover bread every day for fundraising and things like that, so it is a local relationship with consumers it brings people back, and it does not cost a lot to bring people back.

And it is growing faster than other companies in the industry.

Absolutely, they powered right through the recession, same-store sales up, while other stores are struggling.

I expect them to bounce back and continue to power upward.

Toyota is one you looked at.

Because we had such a hard time with brand loyalty over the past years, having a lot of pr missteps, it is interesting.

We learned a lesson in a very painful way.

It was known as the high quality car manufacturer, had a tremendous downfall with the recall on accelerators, and then to add injury to insult, there was also the tsunami in japan, and over the past two years, they have painstakingly crawled back and are at the top of our list again with consumer loyalty.

And on the balance sheet.

I went to talk about lulu lemon, and it is really interesting it is on the top of your list and not the bottom.

We just have about 20 seconds left.

If you could be short.

Normally, this kind of bad press would kill someone's company.

Same-store sales are up, and that is a sign of resilient customer loyalty.

Customers are still going with them.

Chris malone, the highest

This text has been automatically generated. It may not be 100% accurate.

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