Why is brand loyalty of equal, if not more importance, than performance and pedigree?
This is you amongst your competitors:
Now lets ELIMINATE the competitors that ARE NOT performing, and that don’t have experience and deal flow to match yours….
Brand loyalty exists when your LPs stick with you through good times and bad times. What you do to create loyalty is entirely different than what occurs today.
Take Ford for example. People who buy Ford trucks today are quite likely to buy Ford trucks five years from now, even when it is obvious that a competitor, GMC or Dodge, has a newer and better truck. This happens for two reasons:
- They know that Ford will launch a new model and circle to the top. (Applying this to the fund business, you will have your turn as the top performer.)
- Ford does an incredible job creating a sense of pride around driving a Ford truck. (And for the most part, this has nothing to do with the performance of the truck. Our industry can learn a lot from this.)
You aren’t competing against the funds that are not performing. You are competing against the 100 funds that have better performance than you. Focus more on what it means to invest in your fund, versus the performance of your fund.
Our industry can learn a lot from companies like Ford. Brand loyalty is everything.
By Kyle Dunn