74 Marketing Tricks That Backfired Spectacularly

Consumer protection laws are there for a reason. They help defend you from unfair trade practices, misleading business actions, and unethical behavior.

The reason why some companies ignore these laws (or try to find loopholes) is that they want to achieve an unfair advantage over their competitors. In a nutshell, they want more profit, and they are willing to bend the rules—both legal and moral—for a bigger slice of the pie.

Your best defense as a consumer, aside from ideally having a top-tier lawyer who can sue blatantly lying companies, is to be skeptical of any promises made in marketing material and ads.

Good products exist, yes, but miracle ones do not. Anyone who tells you otherwise is likely selling you snake oil and trying to outshine other snake oil sellers.

Unfair trade practices include misrepresentation, false advertising, deceptive pricing, etc., to try to trick the customer through omissions and representations.

A business act or practice is considered unfair if it causes or is likely to cause substantial injury to consumers, cannot be reasonably avoided by consumers, and is not outweighed by the benefits provided to either the consumers or competitors.

The logical strategy for any business owner would be to turn as many current and future customers into returning ones who will be loyal to the brand.

The evidence for brand and customer loyalty is staggering. Broadly speaking, loyal customers bring in far more profit than any other category. So, it only makes sense to focus on long-term, not short-term returns, and create a brand that is reputable and trustworthy.

Stating the obvious: people don’t enjoy companies lying to them. And they won’t be loyal to someone who tricks them.

During a recent survey, Capital One Shopping found that increasing customer loyalty by just 5% can lead to profit increases ranging from 25% to 95%.

What’s more, most retail business (65%) comes from customers loyal to the brand. They are responsible for spending, on average, 67% more on products than new customers.

Consumers who are loyal to your brand are worth roughly 2.5 times more revenue than new or future customers. Furthermore, brand loyalty leads to better corporate returns. They are around 120% higher than average. The cherry on top is that loyal customers boost shareholder returns between 2 and 5 times over a 10-year period.

And if you happen to have a company in the US retail banking industry, you can expect corporate growth to increase a mind-melting 290% above the industry average.

Research shows that 73% of American consumers are loyal to at least one brand, and 68% claim brand loyalty. The average US consumer is enrolled in 17 loyalty programs, with a 51% active participation rate.

Most global consumers (75%) are willing to switch brands if they’re offered a loyalty program with better rewards.

Different customers care about different business practices, but there is quite a lot of overlap, too. For example, 89% of US consumers are more loyal to brands that share their values. Meanwhile, others value good customer service (82%), product availability and options (also 82%), strong data privacy practices (80%), and understanding and care for customers (79%).

Other things that brand-loyal consumers value include trustworthiness and transparency (60%), quality products (59%), brands that “get” them (56%), and companies that take public stances on social issues (54%).

The irony is that many managers and owners understand that customer loyalty is important. However, there is a large gap between knowing this and actually changing your business strategy to embody this understanding.

Short-term pressure to get quick profits ends up eroding customer loyalty because it reduces product quality and negatively impacts services, the Harvard Business Review writes.

What businesses can do to embody the philosophy of leading with customer loyalty is prioritize transparency, reliable disclosure, and customer needs by involving everyone in the overall transformation: employees, board members, investors, etc.

The result, if the strategy is implemented well, is that everyone wins. The customers get better products and services, which makes their lives more enjoyable, easier, and richer. Meanwhile, the company’s employees are responsible for making their customers’ lives better. Managers and investors see greater profits and increased shareholder value. And society as a whole sees more innovation and investment, which lead to economic growth.

It simply makes sense to focus on brand and customer loyalty. And you won’t get there with manipulative marketing tactics, false advertising, or shady product packaging.

Which of these shady practices annoyed and frustrated you the most? When was the last time that product packaging and labels tricked you into buying something that you later regretted?

What companies and brands do you typically avoid because you think they’re deceitful, and which ones do you genuinely think are trustworthy? What do you value the most in a business?

Share your thoughts with your fellow readers and us in the comments at the bottom of this list. We’re curious what you have to say.

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