Why do customers switch to different suppliers??
For a company it is highly important to satisfy your customers in every way. But how would you do that?
Now that’s not the real question. You have to dig deep and explore the reasons of your customers switching. Therefore, the real question arise is “why do customers switch from one supplier to other?”
The reasons could be many but you must ponder over the one which the customers have opted and look for the solutions.
A survey was carried out by Ventura Customer Service and the result showed the following reasons that are given below
a) Core service failure-43% approx.
(Service mistakes, errors, or service ruins)
b) Service encounter failure-34.1%
(Staff uncaring, impolite, unresponsive, or unknowledgeable)
c) Pricing Issue-29.9%
(Increase in prices, Original price range out of budget of customer, Customer earning or spending less)
d) Inconvenience-20%
(Poor Location, Operating hours not suitable for customer, having to wait for service)
e) Attraction to competitors-10%
(Negative response, No response, Reluctant response)
f) Ethical issue-7%
(Found a more preferable product or service)
From the survey results we can depict that the eminent reason of customer’s moving from one dealer to another is” Core service failure”. It includes service mistakes, errors and service catastrophes.
Most people think it is due to bad quality that changes customer’s mind but that is so not true. It is mainly the service and the similar errors in service that compels customers to reach out for other suppliers. People go for the change because they are tired of a bad service and their complaints are not heard. Company that is not willing to bring improvements in their services then they are definitely going to lose their customers. It is human nature that drives exhausted customers from present supplier to any different suppliers. So if you fix their pain then you will make your gain.
Many large companies with extensive number of customers make you wait for a longer time on telephone when you want to complain or you have a query or you just have to order. Customers sometimes get disappointed due to lack of knowledge and the inability of telephone operator to help their customers and keep their interest in companies’ services. This behavior also becomes the reason of switching to alternative companies and avail their services. Alternative may work hard for the provision of best service to their customers no matter their company is small and their business is not expanded as of large companies.
Hence, to keep your customers satisfied with you don’t have to give your attention solely to product quality but also to quality of service. Bad quality can be overcome by great services. So improve your services.