[LinkedIn Post]
Apple’s greatest asset is one that you cannot see, feel, or touch. That is, its Brand Affinity. Buffet is not a technology investor, but he bought APPL because he saw “an extraordinary consumer franchise”. Apple customers are “very, very, very locked in, at least psychologically and mentally, to the product you are using. [The iPhone] is a very sticky”.
I noticed one of my connections wrote a lot about Toyota. I asked him: “What’s your affinity with Toyota”. He told me about a story when he was younger, how he was in a pretty bad car accident with his family, but luckily nobody got hurt and he attributed that to the safety of the Toyota vehicle. He is a Toyota customer for life.
My kids play a lot of Fortnite. It’s a free game, but players buy V-Bucks for new skins, etc. [Aside: As a parent, Fortnite is the most expensive free game there is!]. I bet if Redbull or Monster or equiv, purchased the ability to brand the Chug Jug or Shield Potion, they would create a positive brand affinity to millions of youth, for life.
Brand affinity is created by great customer experiences. I believe that the more bland or generic the product is, the greater effort you need to put on your customer service/marketing/engagement experiences.
[More to come at a later date]