Brand Preference: The Secret to Outshining Your Competitors

The only way to outshine your competitors is to build memorable customer experiences that trigger brand preference in the minds of your customers.

Why this matters:

It matters because establishing brand preference can create customers for life. Once you get to this level of brand engagement, you can do nothing wrong. Your customers will buy from you even when surrounded by other options.

By the numbers:

  • Brands with high preference ratings are three times more likely to be recommended by consumers (Nielsen)
  • A 5% increase in customer retention can boost profits by up to 95% (Bain & Company)
  • 64% of consumers cite shared values as the main reason they develop a strong bond with a brand (Harvard Business Review)

Take Amazon Web Services (AWS) as an example. They are a leading technology brand offering other companies cloud computing services. They benefit from the larger Amazon brand and have consistently increased market share, and demonstrated an ability to foster brand preference through product innovation, competitive pricing, and exceptional customer success. This has led to a 33% market share increase in cloud computing services in 2023, followed by Microsoft Azure (23%) and Google Cloud (11%).

The benefits of growing brand preference are manifold. This translates into increased brand loyalty, higher sales, and a competitive edge for brands. At the same time, consumers who exhibit strong brand preferences can enjoy a sense of trust and familiarity with their favorite companies, leading to a more satisfying and rewarding experience overall.

Definition of Brand Preference

Trying to understand consumer behavior is complex. First, however, it’s essential to understand why consumers prefer one brand over another.

Brand preference refers to why people choose a specific brand over its competitors. This often stems from a combination of factors mentioned in the AWS examples–product quality, pricing, reputation, and emotional or rational connection.

Several key factors can impact a consumer's brand preference, and understanding these components is critical if you want to establish and maintain a strong position in the market

Several key factors can impact a consumer’s brand preference, and understanding these components is critical if you want to establish and maintain a strong position in the market. Some of these factors include:

  • Product Quality: High-quality products that meet or exceed customer expectations often lead to stronger brand preference. A company can solidify its reputation and attract loyal customers by offering high-quality products.
  • Pricing: Competitive pricing can be a significant factor in driving brand preference. While a lower price can appeal to budget-conscious consumers, premium pricing can signal exclusivity and luxury to those seeking a high-end experience.
  • Reputation: A company’s reputation can heavily influence brand preference. Brands with a history of delivering exceptional service (Amazon) and customer experiences are more likely to garner consumer trust and loyalty, even when venturing into new business verticals.

The Role of Emotions in Building Brand Preference

Whether we like it or not, emotions will always play a critical role in shaping brand preference. But, of course, this is only bad news if you have a steel brand and zero brand equity. Companies that succeed in forging emotional connections with their customers often enjoy increased loyalty and a competitive advantage in the market.

Some ways in which emotions can impact brand preference include:

  • Trust: A sense of confidence can significantly influence brand preference. Customers who trust a brand to deliver on its promises will likely become loyal.
  • Nostalgia: By evoking feelings of nostalgia, brands can create a powerful emotional bond with consumers. This connection can strengthen brand preference, as potential customers associate the brand with positive memories and personal experiences.
  • Values: Companies that successfully align their brand values with their customers’ values will find themselves in a favorable competitive advantage. This is even more true with brands targeting the Gen Z audience.
  • Social Influence: The opinions and preferences of one’s social circle can considerably impact brand preference. Consumers may be more inclined to follow suit when their friends, family, or creators endorse a particular brand.

Brand Preference as a Competitive Advantage

Brand preference will always be a competitive advantage.

Companies that design their marketing programs and customer experience to increase brand preference will always find themselves in a winning position. They most likely have a “customer first” culture surrounded by product innovation that pushes the barriers of product design and service excellence.

The key is not to get too comfortable with your brand position. One mistake companies often make to become complacent, assuming that their customers will never switch to another brand. This is a dangerous assumption, especially during a PR crisis.

The brand has been declining for years due to variable market factors-increased competition from other beer brands, the rise of craft beer as an alternative, and consumers’ shifting preferences for drinking beer in general. The recent backlash from a creator marketing campaign might push them farther down the hole.

The Relationship Between Brand Preference and Customer Loyalty

Brand preference is closely related to customer loyalty. Both concepts are often used interchangeably. When consumers prefer a particular brand, they are more likely to continue supporting that brand in the future. This made brand preference necessary because loyalty can result in repeat purchases, positive word-of-mouth, and all the tangible and intangible benefits that winning brands enjoy.

Focusing on brand preference can attract new customers and retain existing ones. It’s a smart business practice and a more affordable one. Also, loyal customers tend to be less sensitive to price fluctuations and more likely to forgive occasional mistakes or product shortcomings, which provides brands with a buffer against market volatility and enhanced stability of repeat business.

The Impact of Brand Preference on Consumer Decision-Making

We experience this every time we walk down the detergent aisle of a grocery store. There’s a reason why we choose one laundry detergent over other brands.

Brand preference plays a significant role in consumer decision-making. When faced with many choices, consumers often gravitate toward the brands they prefer, simplifying the decision-making process and reducing the cognitive effort required to evaluate multiple options. As a result, brands that have established brand preference benefit from “low investment” product sales that don’t need much research.

Understanding Your Target Audience and Their Needs

The first step in building and maintaining strong brand preference is through audience research. This involves market research and gathering actionable insights into customer preferences, pain points, and aspirations. There are many ways to go about audience analysis, from primary research to analyzing first-party customer data.

These insights can help you understand the “why” behind their purchase decisions. Then, you can tailor your products, services, and messaging from there to align with the “why.” There is a tremendous amount of power and responsibility when you can get into the mind of your customers. The last thing you want to do is make assumptions about what they want or expect. Doing so can result in a disconnect with your customers, damaging brand preference over time.

Building a Memorable Brand Identity

One of your marketing goals should be to create brand preference. Write it down and hold yourself accountable to it. Doing so will keep you focused and ensure your marketing plan is built with that end goal.

One way to do this is to focus on your brand’s identity. This is a crucial step for fostering brand preference. This involves developing a unique and consistent brand voice, visual identity, and values that align with your audience’s expectations and beliefs. A consistent identity can go a long way in a crowded market. Also another key to increasing brand preference is message repetition. This ensures that you hit those messages home across every channel in the PESO model, bringing me to the next point.

Consistency Drives Brand Preference

Consistency is critical when it comes to building a brand. We’ve already established this.

The market is noisy, and your target audience is tired of spammy ads. Your brand identity must seamlessly integrate into marketing communications, from public relations to channel marketing efforts. When writing your brand narrative and key message statements, you must ensure that your account for every touchpoint reinforces the same key messages across the board.

Building Emotional Connections with Your Customers

The role of emotions in shaping brand preference is significant. Of course, emotional and rational factors play a role in consumer decision-making, but emotions drive purchase decisions. It’s a fact.

Two effective ways to tap into customer emotions are storytelling and engagement. Sharing relatable stories can evoke emotions, resulting in a shared sense of community and values. Also, actively involving customers in brand experience is another way to reinforce these emotional connections. For example, when your customers participate in telling your brand story, they will be more likely to identify and feel connected to your brand.

By focusing on these strategies, you can enhance your brand’s appeal, build brand equity, and secure a competitive advantage in the market.

Key Metrics to Track Brand Preference

The best way to build brand preference is to measure it. Otherwise, how will you know if you ever move the needle?

Monitoring key metrics that provide insights into your brand’s performance is essential to measure the effectiveness of building brand preference. Some of these metrics include:

  • Customer Satisfaction: Measuring customer satisfaction helps you understand how well your products meet the needs and expectations of your audience.
  • Net Promoter Score (NPS): NPS measures the likelihood of customers recommending your brand to others, reflecting their level of satisfaction and loyalty.
  • Market Share: Tracking your brand’s market share can provide valuable insights into your brand’s position within the industry and how it stacks up against competitors.
  • Social Media Engagement: Analyzing engagement on social media platforms can help you track your brand’s resonance with your audience and the effectiveness of your marketing programs.

Methods for Measuring Brand Preference

To accurately measure brand preference, you must employ various methods to capture different brands and consumer behavior. Some common methods include:

  • Surveys: Conducting surveys allows you to gather direct customer feedback, providing insights into their preferences, satisfaction, and perceptions of your brand.
  • Focus Groups: Focus groups enable you to gather qualitative data from a small group of customers, facilitating in-depth discussions on brand preference and consumer experiences.
  • Sentiment Analysis: Analyzing customer sentiment on social media and review websites can help you gauge your brand’s overall perception and identify improvement areas.
  • Sales Data: Examining sales data can provide insights into customer preferences, allowing you to identify trends and patterns that can inform future strategies.

Analyzing Data to Improve Brand Preference

Once you have collected and measured data using brand health metrics, it is crucial to analyze these insights to identify opportunities for improvement. This process may involve:

  • Identifying Trends: Look for patterns in the data that suggest consumer preferences or market dynamics shifts, which can help you anticipate future developments and adapt your strategies accordingly.
  • SWOT Analysis: Evaluate your brand’s performance against competitors and identify areas where your brand excels or falls short. Use this information to refine your product offerings, marketing, and customer experiences.
  • Take Action: Based on your analysis, focus on implementing the changes to your marketing strategies to build brand preference. This may involve adjusting your brand messaging, updating your visual identity, or improving customer programs.
  • Monitoring Progress: Continuously track your brand’s performance metrics to assess the impact of your changes and ensure ongoing improvement.

Recap of the Importance of Brand Preference for Outshining Competitors

Brand preference is crucial in standing out and thriving in a highly competitive market. A strong preference for a brand among consumers enables businesses to gain a significant advantage over their competitors, foster customer loyalty, and influence consumer decision-making.

When consumers strongly prefer a brand, they tend to make repeat purchases, share positive word-of-mouth, and refer the brand to others. This, in turn, contributes to a company’s long-term success and growth.

To build and maintain a memorable brand, it is essential to understand the target consumer and their diverse needs and preferences, develop a resonant brand identity, ensure consistent branding across all touchpoints, and cultivate emotional connections through storytelling and engagement. By focusing on these strategies, businesses can enhance their brand’s appeal, foster customer loyalty, and secure a competitive advantage in the market.

Moreover, measuring and analyzing brand preference using key metrics and various methods can provide valuable insights for identifying areas of improvement and adapting branding and marketing strategies accordingly. By establishing a strong brand preference, businesses can position themselves to outshine their competitors and thrive in today’s highly competitive landscape.


Q. What do you mean by brand preference?
A. Brand preference is the degree to which customers favor a brand over competing brands when purchasing a product or service.

Q. What are the elements of brand preference?
A. The elements of brand preference include brand awareness, perceived quality, emotional connection, brand associations, and customer satisfaction.

Q. How do you measure brand preference?
A. Brand preference can be measured using various quantitative and qualitative methods such as surveys, questionnaires, sales data analysis, social media sentiment analysis, and net promoter score (NPS).

Q. What is the objective of brand preference?
A. brand preference aims to create loyal customers who consistently choose a particular brand over others, leading to higher market share, customer retention, and long-term revenue growth for that brand.

Q. How to Increase Brand Preference?
A. To increase brand preference, firms need a powerful marketing strategy highlighting their unique services, supported by consistent, quality delivery and customer satisfaction. Building a solid brand identity through uniform messaging, visuals, user experience, active social media engagement, personalized service, and customer feedback consideration is also vital. In addition, excellent customer service, loyalty rewards, endorsements, and influencer collaborations can position a brand favorably among consumers.

Q. What is an example of product preference?
A. An example is when a customer consistently purchases a specific smartphone brand, like Apple or Samsung, due to user experience, perceived quality, and customer satisfaction.

Q. What does it mean to have high brand preference?
A. High brand preference means many customers consistently choose a particular brand over its competitors when purchasing.

Michael Brito

Michael Brito is a Digital OG. He’s been building brands online since Al Gore invented the Internet. You can connect with him on LinkedIn or Twitter.