Companies that thought they were future-proofing themselves by providing quality Australian made products and services to a loyal, discerning public, are now finding themselves competing against cheaper and inferior imports. Manufacturers and suppliers relying on a home-ground advantage are finding very little support from their fellow Australians, who are opting for price over loyalty.

The reason is simple. The "Australian Made" or "Buy Australian" brands are familiar, but actually hold little brand loyalty with the consuming public outside of food. The consumers have shown by their support of "cheaper" buying, that there is no preference for Buy Australian. Business Australia, the Government, have let this opportunity to improve their position against imports, slip through their fingers.

On the other hand, investment into "Australia" in sports, has been fully supported and realised by promoters and sporting associations for years. Topped up annually with some $160 million of additional funding by tax payers into elite sports, the brand "Australia" as far as sports is concerned has a loyal public following.

Sport, accounts for at most, 4% of GPD. Manufacturing instead has slumped 25% to just 5% of GDP. Export goods and services still account for 30% of GDP. Why is there not the same rigorous investment into the "Australian Made" brand to assist the business sector with its brand loyalty? If we don't grow our brand loyalty in "Australian Made", consumer spending will continue to be skewed towards imports and supporting business in other countries instead of here. We need to lift our exports. Improving brand loyalty in "Australian Made" will service this need as well.

Stickiness vs Loyalty:

Know the difference between "stickiness" and "loyalty". People's reluctance to move, or fear of trying something new, is how to regard "stickiness". Being a supplier of a service and counting your clients as loyal when all they are is fearful of trying someone else, is just plain denial.

The right brand with the right market offering can undermine your position in a heartbeat. Virgin thrives on going into industries just like that. First it was air travel, then telecommunications, now insurance. When brands establish themselves in the right way they can travel in any vertical values market. What you thought was bankable goodwill for your business could just be a current lack of consumer choice.

The Loss of Goodwill:

Far too many businesses still rely on shoring up customer relationships using the personality of staff. The CEO is often barely visible in this relationship, except for the occasional site visit or indirect Christmas gift.

Vital goodwill of the business in the form of customer loyalty is being handed over to staff. That is like entrusting the key to your pantry to casual strangers. If your retention rate is on average three years, that means each staff member takes with them three years of loyalty instead of it staying with the business. It also opens up your business to mild forms of extortion as you ensure that key "customer connection" people don't choose to leave and take your clients and goodwill to their next employer, or worse still, use them to start their own business.