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The Swiss population is more loyal than the population in neighboring countries such as Germany or Austria, at least when it comes to companies and brands. Swiss people identify much more strongly with their favorite brands and companies, according to a new study on the identity index by Fehr Advice & Partners.
The management consultancy asked survey respondents to find out how strongly they identified with 89 different companies. Fehr Advice & Partners conducts a survey every three years, surveying both customers and non-customers of companies and brands. The 1,730 participants in the representative survey have a clear preference for the 2024 edition: Being Swiss is king! They placed nine Swiss companies in the top 10.
Coop’s or Migros’ child?
Two local retail giants are on the podium with Migros and Coop. The two companies have succeeded in making customers see them as more than just a shopping opportunity. Many have an emotional relationship with the two retailers. The debates about whether someone is a Coop child or a Migros child prove this.
As in previous years, Migros ranks first this year by a large margin. The orange giant received 79.2 points out of a maximum of 100 points. From a score of 70 onwards, identification with a company or brand is “very high,” according to Fehr Advice & Partner. Coop ranks third with 68.7 points.
Switzerland, the land of chocolate
In Switzerland, the country of chocolate, Lindt & Sprüngli’s Lindt brand was among the two retailers with 71.3 points. The chocolate maker focuses on premium products for the masses. But anyone who offers specialized services or products will find it difficult to rank high.
However, Lindt’s score dropped by 5.9 points compared to the last survey. A possible explanation: With the price increases in the last two years, people’s addiction to a luxury product such as chocolate has decreased.
The high level of loyalty to Migros, Coop or Lindt is no coincidence: companies and brands with which the population strongly identifies invest large amounts of money in advertising and brand building. This increases the loyalty of its customers. Additionally, perceived quality increases. And suddenly Migros yoghurt tastes better.
Identification causes safes to be stolen
Companies can also achieve this goal by making additional investments in the quality of their products. “However, this would likely lead to higher costs, and it would be unclear whether additional investments would lead to better assessments of quality,” the study authors write. Especially when it comes to consumer goods, strengthening identity is often more effective.
This benefits companies: If customers identify with a brand, they buy more and more often. They are also willing to pay higher prices. This is one of the reasons why shopping at Migros and Coop is still much more expensive than at Aldi and Lidl.
These are places 4 to 10
While SBB ranks fourth with 68.4 points, it is among the group’s top earners and enters the top 10 for the first time. Compared to the last survey, SBB gained a whopping 12.1 points. For recreational transportation, the population increasingly relies on the offer of the largest public transport provider in the country. While the Swiss appreciate SBB’s punctuality, they quietly feel sorry for people in Italy or Germany.
Nivea, the only brand from abroad in the top 10, ranks 5th. The largest brand of the German group Beiersdorf, based in Hamburg-Eimsbüttel (D), can count on loyal customers in Switzerland. Positions 6, 7 and 8 feature three traditional Swiss brands: Ovaltine, Ricola and Rivella.
Nestlé’s Callier was the second chocolate brand in 9th place. Swisscom, Switzerland’s largest telecommunications company, closed the top 10 with 64.1 points. Anything above 60 represents a brand’s “fairly high to high” identity.
These sectors are among the winners
It is not only individual companies and brands that have become more popular among the population: the insurance industry managed to grow significantly compared to 2019. The Swiss identify most strongly with Mobiliar (50.9 points). Zurich Insurance, which made the biggest leap, ranks second. The authors of the research explain the positive trend in the sector as follows: Today, we are going through a period full of uncertainties. This increases the need for security and protection.
The banking sector is also one of the winners. Raiffeisen came first. In second place is the digital bank Neon, which has more than doubled its value to 50.7 since 2019. Identification with industries has also increased among retailers and health insurance companies.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
