j0382829.jpgI’ve always taken out breakdowncover … in fact I’ve been a member of the RAC for more than 20 years. I even returned to the RAC for cover for a second family car after I’d had a “rest period” of three years with the AA, courtesy of a new car that automatically came with cover. So that says a lot about Brand Loyalty … or maybe inertia on my part. To be fair to the RAC, it was more than just inertia, as I’ve always been pleased, sometimes very impressed, with their level of service. So I’ve been a long-standing, loyal and satisfied customer – loyal to the brand, until my renewal came through this year …

So what’s different this year? Well, the cost seemed quite high, particularly as I wanted to change the cover and add my wife (who was no longer covered by the AA arrangement). A family subscription was over £200 … and I just thought that it seemed too much.

So it became a potential breaking point for me in my relationship with the RAC.

Surely there had to be a cheaper alternative? I wanted to cover two cars with any one of three members of my family driving … and that was over £200 a year. The advantage we all have now is that we can research costs, services and competitors on the internet. Ten minutes later I’d done some extensive research and I’d found out that the AA was almost exactly the same cost … but that Tesco offered cover (outsourcing to Green Flag) for £90.30.

Loyalty to the brand?

Or pay less than half the price for basically the same service?

A “no-brainer”, as everyone seems to say nowadays!

So what would it take for you reach breaking point and switch away from a long standing supplier or service provider?

And for your customers? Are your services or products that different that you can expect long term brand loyalty? Or are they going to be reaching ‘breaking point’ this year?