Keeping your customers away from your competitors
Being a small business in the market is tough. While establishing your brand is demanding enough, that covers only half of the job. The real challenge continues as you and bust your way up the ladder and stand out from your competitors. This will involve a lot of time and effort to build credibility and maintain customer retention.
As we know it, there is no one-size-fits-all strategy for businesses of all types. There is no universal answer to what keeps your consumers coming and how to keep them. And when it comes to keeping up with your competitors, it will definitely take more than just making your services or product available to your target market. You need to create a competitive advantage and know how to cater it to your clients.
This is why you have to get to know your customers, know what makes them leave or stay, and use those elements to your advantage. Placing yourself in the shoes of your customers is taking the first step to understanding them. What do they want and what DON’T they want?
What makes customers leave?
In a book written by Dr. Michael Leboeuf, a survey was conducted among customers. The respondents were asked about why they leave brands or services. Below are the top causes people abandon certain brands.
- 1% pass away
- 3% move away
- 5% develop other friendships
- 9% leave for competitive reasons
- 14% are dissatisfied with the product
- 68% quit because of an attitude of indifference toward the customer by an employee
Statistics showed that majority of the respondents leave companies because of the interaction they have with your business. It’s the smallest incidents that can break their loyalty to your brand.
It could be that one time a wrong product was delivered to your customer because of a misunderstanding during purchase. Or the daunting process they have to endure instead of having the one-click experience. It could also be as simple as the long hold your clients have to go through while talking to a representative. Or worst, not being attended about their complaints!
These experience may differ in the situation but it all boils down to one outcome. The customers will end up feeling unacknowledged.
Why do they prefer the other brand?
- Product value and its cost
When deciding which product to buy, your initial instinct is to weigh whether the value you’re getting for your money is worth it. Your clients aren’t any different! They have to know if your service has greater value than other brands. In fact, a customer will be more willing to purchase a brand that is reliable but costly, rather than a brand that has a low value yet cheaper.
For example, an average consumer who is into sports will more likely create a purchase from Nike amidst the cost, than go for a cheaper clothing line but of lower quality. As a small business, you have to make sure you deliver a high quality product for your consumers to start trusting your brand and keep them from brand switching.
- Lack of personalization
Another major reason why people switch brands is because they feel as if they are not being taken care of. When it comes to the lack of personalized content, your customers tend to feel as if their problem is not addressed.
Customers trust brands who appear to know what they need and when they need it. Impersonalization comes in many forms such as wrong hotel recommendations, irrelevant mailers and ads, or campaigns that simply do not apply to them.
As a business, your number one goal should be to create convenience to your customers. You should tell them why they need your service in their routines. If your brand doesn’t speak to them in a certain level that makes them feel like they need you, then you must be doing something wrong. You have to find out what and do something about it, quick!
- Dissatisfaction with Customer Service
One fact that you have to keep in mind is that a complaining customer gives the company an opportunity. You should not be afraid of customer complaints, instead, see them as rooms for improvement and find a way to better your organization.
This is the main reason why you shouldn’t take customer service for granted. Your representatives’ performance will greatly affect how your customers feel about your product or service. Although often very common, situations universally unacceptable are
- Being put on hold for a long time
- Poor attention to detail
- Talking to representatives who don’t have enough knowledge on the product
- Inappropriate attitude of representatives when interacting with customers
A research by American Express on Customer Service presented the following statistics:
Happy customers tell on average of 11 people about a positive experience.
Unhappy customers tell on average of 15 people about a poor experience.
This proves that creating awful experiences for customers affects the business more than providing a convenient experience.
- Lack of communication
What’s worse than having bad customer service department is not having them at all! It has been recorded in The Aspect Consumer Experience Index: Millennial Research on Customer Service Expectations that 76% of consumers makes customer service a basis of how much a company values them.
As an expanding small business, you will find it hard to juggle time between strategizing and allotting time to accommodate all of your clients’ concerns. Some small businesses resort to outsourcing their customer service team in order to accommodate their clients’ concern. In return, they have seen outstanding results.
How Do I Make My Customers Stay?
To keep your business going, it should be in your best interest to keep your customers interested and engaged – and away from your competitors!
Maintain constant contact
Be available whenever your customers need you to be there. Having a contact centre helps when accommodating customers. It’s easy, accessible, and everyone uses it nowadays.
Receiving complaints from customers does not always mean tragedy. Look at it as an opportunity to improve the system. Make sure you attend to them and help your consumers resolve them with the help of knowledgeable and well trained representatives.
Aim for convenience
Avoid putting your clients through never-ending process. Be sure to make their interaction with you as easy and as less effort as possible.
Personalize your service
The goal is to stand out from the crowd, not blend in with them. Develop strategies on how you can create solutions for your target consumers’ problems. It is important that they see your business’ value in their lives which is why you produce services which exceed expectations and go beyond the average.
If you need any help or consultancy in creating better experiences for your customers, we are more than happy to help!