Businesses test customer loyalty theories during hyper-polarized political period

The Starbucks brand has taken a hit since the company decided to protest President Donald Trump’s travel ban with the announcement of plans to hire 10,000 refugees worldwide over the next five years.

Here’s a look at mega-brands leveraging politics during this hyper-polarized period for the United States:

In business, taking a political stance doesn’t have to be a public matter. These enormous corporations have made a calculated risk in their attempt to drive governmental policy. But why be public about it?
Because the prospect of retaining and/or gaining customers through loyalty marketing is very valuable. Loyalty marketing, in this case, is the idea that customers are more likely to buy from company A because its political thoughts align with theirs, vs. company B that has no stance or an alternative stance.

There are over 3600 companies nationwide that have made it known, via public statement, which direction they lean politically. It’ll be interesting to watch the performance of less established brands over time.

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