Wednesday, August 2, 2017

Are you worried that your customers will leave you for a competitor? Customer loyalty is important for business expansion, and losing customers can put a wrench in your growth trajectory. Here are some reasons why customers will break their loyalty and run to competitors.

Low Pricing

Does your price reflect your product value? It’s not uncommon for business owners to price their products too low because they are afraid of pricing above the competition and losing business. 

You may have a set price in your head and think your customer will not spend above that, but instead, your low price may be a red flag for potential customers. If you price a product too low, it could deter buyers as people often associate cost with value. 

We are wired to believe cost increases as the value rises and vice-versa. So don’t be afraid to price your product what it is worth and stress your product's value and benefits. Pricing is largely based on perception, and your customers will buy if the value they perceive outweighs the price. Connect the value to your product, and your customers will make purchases.  

Poor Communication

Are you having problems with staff communication? Are there issues lurking behind closed doors?

Letting those issues seep into your customer communication can send customers running to your competitors. For example, if you own a restaurant and your chef decided to quit, this is not something to communicate to your customers when they do not receive their food on time; it’s not their issue. Keep your customer experience positive, and leave the problems behind closed doors.

Too Much Focus On Sales

Every good company knows that the customer is the backbone of the business. But, it’s easy to get caught up in driving sales more than pleasing customers. Selling is an essential component of a sound marketing strategy, but not when it results in people feeling pressured to purchase. This is especially true in the online world where the focus is on community and consumers can’t physically interact with you. 

If you run social media profiles, keep the sales posts to a minimum. Use the 80/20 rule where 80% of your posts include content that's valuable for your audience, and 20% advertise your products. You can also showcase your products without resorting to in-your-face advertising. Consider posting user-generated content (content submitted by your customers) that includes images of your customers using your products. These images spread awareness about your company without being too aggressive.

Keep Your Customers

The more connected your customers feel to your brand and products, the more loyal they will be. Ongoing communication is one strategy you can use to facilitate this; however, one-on-one verbal communication is difficult, if not impossible for growing businesses. The cost and time investment required to contact all of your customers would shatter your ROI. Email marketing is one valuable strategy you can use to stay connected with customers, but it is not as effective when used alone, as low open rates prevent your customers from seeing all of your email messages. 

Voice broadcasting is a cost-effective, easy way to communicate with your customers and get your messages to more of them, and for only pennies a call. Send reminders on special deals and promotions, offers, and incentives. These messages will keep your brand top of mind and increase customer retention. 

If you would like to try voice broadcasting as a strategy to increase customer retention and get your messages in front of more of your customers, sign up for a free account here. There is no commitment required, and you can get started right away.

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