Blame your competitors as you may, but the days of loyal customers are numbered. Your customers switch brands in the blink of an eye, so the 20% customers who accounted for 80% turnover according to the famous rule now stands almost 50/50.
The immediate question pops as to why this trend prevails. Here are the reasons why customer disloyalty has increased over the years:
Plethora of options: Internet houses endless options for your choicest of customers. If your competitor is giving a better offer than you, you will easily lose your customers. Added to that, online shoppers look for an experience as a whole, so they will directly opt for a trusted brand, backed more with logic and less emotions.
Can’t keep up with the services: If you are not on top of your game, you are losing it. Heavily investing on customer services should now be a priority. Your company stands alongside the world’s best e-commerce and if you do not make your service come in par with that of e-giants, then customers will always prefer your competitor. They do not see how far you have grown, rather the point is always that of comparison, and how better your services are compared to XYZ.
Compare and contrast: The digital era has made things easy, accessible and transparent. Smart online shoppers always compare prices before purchasing anything. Websites such as Al Price, makes it extremely easy to compare and contrast the actual worth of a product so that the customers always find the best deal.
Too many cooks spoil the broth: Another reason could be too many players in one game. Having a huge set of employees work on one service leads to a lack of responsibility. The blame game is abundant in corporations these days, because of many unnecessary departments created by the brand.
Customers think that brands are interchangeable: If a customer is booking a long flight, it is not necessary that the airline will be the same. For example, halfway can be Emirates and the other half can be Etihad. Customers don’t care about the brand, it is all about the holistic experience at the best price.
What is the solution to customer disloyalty?
Brand loyalty has decreased, but service loyalty has scaled.
Authority on Google: 85% of the customers first head to Google to search what they are looking for. Chances of many websites popping for the same service are endless. Becoming or even trying to be an authority, through blogs, and news can be very helpful.
Social Media: Make your Social Media game strong. Websites aren’t enough for conversions, and people spend maximum time on Social Media. Getting your presence heard breeds familiarity when they are finally looking for the services that you offer.
Content is king: Create content that is relevant to your customers and resonates to their need. This will allow you to stand out amongst your competitors. When you create the content, ensure to share it on all Social Media channels, and make the required noise.
Think out of the box: Think about ways your customers will listen to your brand. Some companies have started a digital magazine to keep customers engaged, some collaborate with Spotify to make a playlist for the holistic shopping experience, and some brands organize music festivals, etc. Thinking out of the box allows your brand a voice that people will listen to.
Be that selfless retailer: At NRF 2019, Retail’s Big Show, Nielsen Senior Vice President of Retail Product Leadership, Julie Currie stated: “In the age of disloyalty, it is the selfless retailer who will win over customers.” “Throwing retail allegiances to the wayside, today’s retailers must be extremely well informed and tuned into the needs and wants of the individual consumer — stretching beyond their core consumer and beyond targeting the masses. The selfless retailer will do everything they can to meet the needs of the individual consumer, regardless of the fact that they are or aren’t a current customer,” Currie added.
Listen, learn and adapt: The only way to be ahead of the game in a world of customer disloyalty is to listen to your customers, learn what they seek and adapt it as your own.
Why customers are surprisingly loyal to Apple?
If you use an Apple product or know someone who does, you may have heard them say that they will never switch to anything else. Despite the fact that Apple is expensive, customers still flock to purchase its products. In fact, a study has shown that 87% of Apple customers are brand loyal and will continue to buy Apple products in the future.
Ironically, in the world of customer disloyalty, Apple stands unharmed. Why? Because Apple invests heavily in developing customer loyalty. With cutting edge innovation, powerful tools that empower individuals and brilliant customer service, Apple is the company that is doing it right. They give people reasons to be loyal to, and a Facebook survey found that millennials are 1.75x more likely to “say they’d like to be brand loyal.”