Breaking A Consumers Loyalty

Something that I am quickly finding out in the Web Hosting space, is that consumer loyalty is absolutely massive in this industry. I knew I would definitely face an uphill battle in convincing customers to switch over to Wachahost, but some people sure are stubborn.

Consumer loyalty is probably more prevalent in the real world (Opposed to the fake online world :p), where choosing a particular brand over another can really be a tough decision. One of the best examples I can think of is where you do your personal banking. Here in New Zealand, banks try to sway consumers right from day 1. There is ads on TV everyday about getting your 5 year old child a bank account for his future. And for good reason too. I personally, have never switched banks in my life, and I don’t think I ever will. And all because my father signed me up for a bank account at a very young age.

Not only do they try and sign you up at a young age, they also give you mad deals that basically involve zero fees for your entire teenage life. While you are at school, you have absolutely zero bank fees, none at all. When you become a student at university, you also have no fees. And they even offer you small student loans (around $1000), to let you buy furniture for your flat. Ontop of that, they give credit cards out to pretty much any student at all.

All of this has the effect that you belong to your bank. Maybe when you owe them thousands of dollars on your credit card, it feels like you owe them something! But more so, when you have had good experiences with your bank for 20+ years of your life, with zero fees, then you are definitely likely to stick with them. For the banks this means that you are likely to give them your mortgage which is really their biggest money spinner.

Loyalty doesn’t just belong with one person. If one person is loyal to a brand, then they will often recommend that same product onto others. I have spoken about this briefly before, but the biggest corporation in the world, Microsoft, leverages this heavily. When you are studying any Microsoft course at an established training facility (Not just learning from home etc), you pretty much get any product you want for insanely cheap prices. I have copies of Microsoft Server Enterprise (RRP $1000+), sitting around doing nothing, all because I just had to get it because it was cheap (/free). Microsoft are giving me a great experience by giving me all this free software to try and learn on.

When I did my developers course, I learned pretty much everything there is to know about Microsoft SQL Server. And of course, I got a free copy that I can basically install on as many PC’s as I want etc. Now this falls into Microsoft’s plan brilliantly. Let’s say that I am with a new startup company, and they are deciding which SQL software to use. You betcha I am going to fight tooth and nail to make it Microsofts product, not some cheap alternative. Simply because I have had so much experience with it because of all the free copies Microsoft gave me, and because I know it is just an amazing product that Microsoft has.

Loyalty. It works wonders. Except when you’re on the receiving end.

So back to my original point. It is a hard slog trying to convince people to break the shackles of their stubborn, loyalty craved minds. I’m doing it, but slowly.