“Anti-Incumbency” Syndrome Hits Brands

“Anti-incumbency” – term synonymous with elections and government change. Every 5 years you hear governments getting toppled with the common excuse of being afflicted by the “anti-incumbency” wave. So, what happens – do the governments not deliver on their manifesto or is it a case of pure fatigue or just ‘change for the sake of change’? We would like to believe that during its reign the ruling party would strive ardently to deliver on their agenda in the hope of being returned to power. But yet it is always tougher for the incumbent as the “new” lures you into believing that it would be better and more promising.

This sort of change for ‘change’s sake’ is certainly not unique to governments alone. Infact, it runs rampant in the wonderful world of marketing as well, especially with those brands having the same lifespan as governments in India.

How many times has a good product been dumped just because the new one offers more excitement and a better talk-value? How many times has a perfectly satisfied user succumbed to the temptation of a new experience? “I have been using a Maruti Esteem for years now, so my 10-year old son insisted on next car being a Chevy Aveo” or “We have been using a Whirlpool washing machine for years, lets look at an LG or Samsung model” are increasingly being heard from buyers when it is time for a change.

Consumers are becoming more daring in their expectations due to a myriad of unrelated societal and technological changes. Freed from the shackles of tradition and scarcity, enjoying full access to information and reviews, these consumers are trying out everything “new” – new products, new authors, new holiday destinations, new relationships – new ‘anything and everything’ with complete abandon. Attractive to consumers who are increasingly leading a transient lifestyle governed by a ‘disposable culture’, these consumers are freeing themselves from the hassle of permanent ownerships and possessions. What drives them out is boredom, monotony and the mundane and what drives them in is novelty, discovery and action.

The implications? An obsession with the here & now, an even shorter satisfaction span and a lust to collect as many experiences and stories as possible, is undermining the perceived value of fixed goods & services. The exposure to the brand, the glamour of new product offerings, fatigue with the existing, and the emergence of new wants, needs, and aspirations of the customer is perpetuating this ‘anti-incumbency’ trend in brands.

There are other factors responsible for this syndrome as well. The ability to quickly dispose off what’s no longer required is driving promiscuous consumption as people are no longer worried about buying the wrong product and getting stuck with it. This is being driven by the successful emergence of different auction sites. Consumers are aware that there will be residual value and they are willing to take more chances because they know there’s an exit if they have made a mistake. This is giving birth to an ‘exchange’ trend in the durables’ space especially in high value categories like cars, high-end electronic goods, etc.

Living in the world of abundance, the audience today is getting greedy and is the most fickle. In terms of product loyalty, they are champion polygamists. Every current trend is writ largely with them. The fragmentation of mass audiences, their willy-nilly flight from one platform to another is redefining the conventional definition of loyalty.

How many times have you heard that “it costs several times more to attract a new customer than to keep an existing one?” But with the emergence of this polygamous lot, the question begging to be asked is “Is it now time to forget loyalty?”

There’s widespread agreement that customers generally get sick and tired of the product that they have been using for a while. So, what’s the elixir that will invigorate them?

The challenge with building customer loyalty is that it has shifted from being defined only by such tangibles as quality and price to mainly being defined by intangibles such as values, cultures, attitude, etc. So, to deflect the impact of brand fatigue, companies should invest in intangibles at subtle levels. As far as functionality is concerned, given the current competitive market, one is bound to try new things because product innovation is at its peak. The mass consumers today are children of liberalization and it’s too soon to get hitched.

New offerings and launches will continue to attract customer and be successful because the market isn’t saturated enough to show signs of loyalty. A 4-year old Chevrolet has been one of the fastest growing car brands in the country and has a long way to go.

And there will be many more such categories and products.

Today, even the loyalists’ brands admit that in such a dynamic market, loyalty is not enough. You have to appease the consumer consistently.

The point is that we need to shift away from the traditional definition of loyalty because the customer who “never” switches products or brands is impossible to find? The challenge is to ensure that the customer enjoys and cherishes the relationship during and after the relationship is over, to assuage the effects of the ‘anti-incumbency’ trend.