An Ag Equipment Intelligence survey of over 800 growers conducted in April shows nearly two-thirds would describe themselves as “brand loyal” and purchase the same brand year-after-year when it comes to tractors, field equipment or combines.
This is in line with the 2020 brand loyalty survey when 63% of farmers said they were brand loyal, but down from 75% in 2017.
Just over 24% of farmers said they are less brand loyal than they were 5 years ago. Dealers are a bit more pessimistic about how brand loyal their customers are, with 53% reporting their customers are less brand loyal vs. 5 years ago.
While about 10.5% farmers report being more brand loyal compared to 5 years ago, only 4% of dealers said their customers are more brand loyal vs. 5 years ago. Farmer commentary suggests price, service and the dealership are some of the top contributors to brand loyalty.
A more in-depth analysis of Ag Equipment Intelligence’s latest brand loyalty report will be released in July.
EDITOR’S TAKE:
Not terribly earthshattering research but it is consistent with other research on the subject. Farmers/ranchers, like many other consumers, will shop for the best deal/value for their money. Farm Journal Media research tells us that 67% of farmers/ranchers are willing to change brands. That said, they will also take into account parts, service, financing terms, warranty and dealer responsiveness. I recall standing on a hill with a farmer friend when he pointed to the nearby village and said, “That’s my dealer, I love that they are so close and convenient, and I trust them.” To me, that comment said a lot about what he and many other farmers/ranchers are looking for when it comes right down to it. Make it easy to do business, build a trusting relationship, and they will be more loyal than most customers. Also, when you have AgPack® and can save them up to $35,000 in operating costs, that also removes their reason to shop around. Be sure to watch this week's "Ideas and Updates" video where Pat Driscoll takes a deeper dive into what this story and research from Farm Journal Media on brand loyalty mean to you!
