A Practical Guide to SharePoint 2013

A Practical Guide to SharePoint 2013
A Practical Guide to SharePoint 2013 - Book by Saifullah Shafiq

Friday, August 4, 2023

Reasons why consumer switch to other brands and how to deal with it

Attracting and retaining customers is a major challenge that companies face today. With numerous alternatives available in the market it is not difficult for them to switch to other brands that offer "greener pastures." Initially, its drawbacks might not be visible but in the long run it can cause a huge drop in your sales when you lose a bunch of your loyal customers. Other than that, it can also result in a loss of your market share. During the pandemic when shelves were empty, people had no option to try new products. Interestingly, 65% continued using the new brands products even after the pandemic ended. So, better watch out!

Below are some reasons why brand switching is becoming common and how companies can overcome it. 

Price versus value of the product

Sometimes, the price of a product is higher than the customer's expectation. Customers compare the price, quality, features and benefits of one product with the other and the level of satisfaction that will be attained after making a purchase. The product might be available at the store and may be out of stock. But to fulfill their current needs customers have to look for other available options that are satisfactory and have a low price. That's where they make up their mind to buy the competitor’s product. This means you have to rethink your pricing strategy and make sure that your product is always available on the shelves. You should reconsider the following aspects:

Who are your target audience?

How much are they willing to pay for your product?

Do they prefer a low price or prioritize the value of the product more?

Also keep your competitors in mind and me comparisons by asking yourself these questions

What are the competitors charging for a similar product?

What are their product offerings?

Is their product's value greater when compared to your product?

Also, consider the market and economic situation before setting your retail price.

Inadequate Customer Service

A brand that provides excellent customer service not only satisfies its existing customers but also attracts more shoppers. Poor customer service might include no exchange and return policy, not responding to customer queries on time, delivery time too long or your customer service representative might be impolite. As consumer preferences and trends evolve, brands must adapt to stay relevant. Failure to do so may result in consumers switching to brands that align better with their evolving needs and desires.

Brands do not understand their customers well 

Sometimes brands fail to understand their customer. Consumers often switch brands when they perceive that they can get better value for their money elsewhere. This can be due to competitive pricing, discounts, or promotions offered by other brands. If a consumer experiences dissatisfaction with a product's quality, performance, or durability, they may consider switching to a brand that promises better reliability and effectiveness. Brands that consistently introduce innovative products or services may attract consumers seeking the latest advancements, prompting them to switch to more forward-thinking options.

Consumer brand switching is a multifaceted challenge that requires a proactive and customer-centric approach. By understanding the underlying reasons for switching and implementing effective retention strategies, businesses can foster lasting customer relationships and maintain a competitive edge in today's rapidly evolving market.


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