Apple, Amazon, Domino’s, TikTok, Netflix Take Top Loyalty Spots in Brand Keys' Rankings

Brand Keys, in compiling its 16th annual Loyalty Leaders List, identified expectations as the key driver of consumer behavior and loyalty. 

"This year consumers assessed 1,465 brands in 142 categories. The brands are ranked according to their loyalty strength," said Robert Passikoff, founder and president of Brand Keys, in a statement. "The analysis found consumer allegiance is driven by those expectations and act as a true yardstick for loyalty success."

"The better a brand meets expectations determines how loyal customers will be and how profitable a brand will be," Passikoff added. But he also warned that expectations increase every year, on average by 30 percent, while companies only keep up by 8 percent to 12 percent, demonstrating the gap between what consumers truly desire and what they think companies actually deliver. "It explains why some brands do better or worse than others on our annual list and in the day-to-day marketplace," Passikoff said.

The top 10 brands for loyalty this year included the following:

1. Apple (smartphones).>
2. Amazon (online retail).
3. TikTok (social networking).
4. Domino's (pizza).
5. Netflix (video streaming).
6. YouTube (social networking).
7. Samsung (smartphones).
8. Levi Strauss (apparel retailers).
9. Dunkin' (coffee).
10. Mattel (toys).

For this year's top 100 Loyalty Leaders, 21 percent were retailers, 18 percent were in the entertainment vertical, and consumer packaged goods accounted for 14 percent of the list. Automotive/travel-related companies and the tech sector each represented 13 percent of this year's list. Financial services (10 percent), personal services (6 percent), and restaurants (5 percent) made up the remaining Loyalty Leaders List sectors.

Because companies' ability to meet expectations determines how consumers will ultimately rank them, it explains why loyalty expands or contracts, and diagnostics can tell you why. The biggest increases and decreases among this year's top 100 brands were as follows:

• Mattel (up 32 percent).
• Levi Strauss (up 29 percent).
• Ford (up 23 percent).
• American Express & Ralph Lauren (up 16 percent each).
• Chipotle (up 13 percent).
• Chobani (down 18 percent).
• UPS & Sam's Club (down 16 percent each)./li>
• Lululemon (down 15 percent).
• Facebook, FedEx, and Hulu (down 154 percent each).
• Dollar Tree (down 13 percent).

"The shifts in loyalty rankings are proof of concept," Passikoff said. "Expectation shifts and a brand's ability to meet them explain the changes in loyalty ranks."

In explaining some of the movement, Passikoff noted that last year's "Barbie Bounce" continues to boost Mattel's loyalty momentum. Levi Strauss' is directly related to better meeting direct-to-consumer (D2C) consumer expectations. Ford's post-purchase remote service options fueled loyalty. Amex ramped up CX programs to better meet customer expectations. On the other hand, both FedEx and UPS saw loyalty rankings drop amid post-pandemic consumers' engagement with alternative delivery options. Chobani is seeing the effects of lifestyle expectations shifts and an expanded competitive set, including entries from Iceland and Australia. Sam's Club was hurt by revoking free shipping for online orders less than $50. Dollar Tree added more expensive items, which were antithetical to customer expectations.

"That's what happens when consumers expectations aren't met. Delight turns to disappointment, and loyalty is always the first victim," Passikoff advised.

Increased expectations have made loyalty more challenging today because they're mostly emotional, but they're also leading indicators of consumer behavior and predictive of what consumers truly desire, according to Passikoff. So, by tracking expectations, companies can put an early warning system into place.

"Changes in expectations provide brands with category and brand value alerts up to 18 months in advance of the marketplace, two years ahead of brands trackers, and five years ahead of focus groups," Passikoff noted.

Only four brands were added to the top 100 this year, the fewest number of new brands since the survey was initiated. Those included the following:

• Visa (#92).
• Expedia (#96).
• Taco Bell (#98).
• Wrangler (#100).

Loyalty is all about creating emotional connections, which drives how well consumers feel companies meet their expectations. Companies that do that always performs better in the marketplace, according to Passikoff.

To successfully deal with consumers, "the very first thing marketers need are accurate measures of what those expectations really are," Passikoff stated. "Meet those, and loyalty and profitability follow."