Customers will switch to your competitor for so many reasons. Currently, many businesses are facing stiff competition and since customers are fickle creatures, they can churn or switch to your competitors.
Interestingly, you may never find out the (real) reasons why your customers switched to your competitors, and that is because it takes about 9 out of every 10 customers to stop patronizing. Therefore, you can be sure that the chances of the switcher psychology will be high.
To help you understand why you are likely to lose your customers to competitors, we have made a list of the primary factors that trigger customer churning in business.
1. Your Customers Will Switch to Your Competitors Because You Lack Innovation
Innovation is one of the reasons why your customers are likely to quit patronizing you and patronizing your competitors instead.
Innovation is not like a “touch and go” kind of thing. It is continuous meaning that you must continually look for ways to bring in constant and up-to-date trends to enhance the way you do business.
2. Incentivize Your Customers, but in Exchange for Action
Customers like to receive gifts. You need to find ways to incentivize them. It could be giving them gifts or issuing them some coupons. You can also offer discounts. Whichever option you decide to use, the general rule is to incentivize your customers but make sure they take any action.
An ideal way to achieve this is to direct them to take any action or complete a task before they can get the incentives. For example, you can ask your customers to get more customers for you in exchange for getting a certain percentage from the first purchase of the customers they referred to.
You will be amazed to see that your current customers will turn into aggressive marketers who will be doing all they can to be able to get the incentives you have to offer.
Besides, incentivizing your customers is a win-win situation:
- Your business will get new customers
- You will keep your customers by incentivizing them
- It helps to strengthen the relationship between your brand and your customers
- Your customers will indirectly become evangelists of your business
3. Zero Knowlege Facilitates Customers Switching to Your Competitors
You already understand some of the needs of your customers. But they may likely switch to your competitors for some reason you may not be aware of. That is why it is important to look for ways to break into the defense of your competitors so you can understand the reasons why customers are likely to find them attractive.
While evaluating your competitors, some of the steps you can take include:
- Looking for competitors’ new products and services, which are likely to attract your customers to them
- What other offers do your competitors have and which can trigger your customers to switch to them?
- If your competitors have new products and services, what are the likely products and services that your customers tend to prefer over the others?
Once you understand and gather the data, it will be time to look for ways to model them and make changes in your business so you can accommodate the interests of your customers and prevent them from switching over to your competitors.
Preventing your customers from switching over to your competitors can be easy if you understand and take advantage of the tips we just shared.
Do you have any questions on how you can reduce the likelihood of your customers to switch to your competitors? Drop your questions in the comment section!