6 Reasons Why you’re Losing Your Customers

<6 Reasons Why you're Losing Your Customers

Customers are important for any business, and losing them is heartbreaking. Study shows that only 13% of customers said they are not loyal to a single brand, and another study states that they shopped around, and 58% of them said that they had switched to a new brand.

Customer churn is bad news for brands. Wondering. Why do people leave a brand? What motivates customers to switch to another brand? Many reasons contribute to customer churn. If your customers feel ignored or had a bad experience, they shift to another brand and leave. Of course, you don’t want this to happen to your business again and again. It’s time that you think seriously about customer churn and what you can do to fix it. Here are some of the major reasons why your customers are leaving your brand and solutions to fix the issues.

What are you waiting for? Let’s dive in.

1. Bad Customer Experience

If you are wondering if you are losing customers due to the price factor, you might be wrong. Cx matters to customers. No matter how much a customer spends with a brand, they expect a good customer experience in return. Study shows that 68% of customers leave because they are upset with the treatment they have received. These numbers state that a bad service or experience does affect a customer’s churn rate. Here is the solution to fix it.

How to fix it?

It’s time you start tracking your customer service department and marketing strategies. Make sure whatever platform your customers are using for shopping, they are satisfied with it. It could be an app, store, or website. Open communication and immediate response are essential for offering a great customer experience.

2. Failing to exceed customer expectations

Your customer spends money on your product not just because it looks awesome or has more features than your competitors. They expect a specific outcome, whether it’s a speedy performance or better tech for spending money. If you fail to exceed these expectations, you might lose your customers, probably to your competitors.

How to fix it?

Learn to find that ‘Aha moment’ while designing a product. Don’t think that marketing magic will make up for a poor product or service. You need to do hard work to produce an excellent product for your customers. Do your research on new trends in the industry, adopt them for your product, and always state your points to your product manager regarding any loopholes or issues.

3. Outdated or Aggressive sales tactics

Do you know that aggressive sales techniques are outdated? If your sales techniques are outdated or too aggressive, your business is likely to lose customers. It could be tons of messages, emails, or social media posts that you are sending every day, probably driving your customers crazy. Hence, avoid being pushy when it comes to sales tactics. Focus on building trust with limited communication.

How to fix it?

Think about your customers while planning a marketing strategy – what do they want? What do they like? And what is not working? Take time to learn about your customers and create content that shows how a product benefits the customer and addresses their needs. Build relationships with your customers and avoid selling with every interaction. Instead, focus on building trust.

4. Lack of Brand Loyalty

Customers run from one brand to another when they are not getting what they are expecting. As a business leader, you need to know why your customers are not committed to your brand? Most often, it is related to prices, products, or customer experience. If your brand is lacking any of it, you lose customers. For building brand loyalty, you need to offer unique experiences to your customers. It could be related to product, service, or overall customer experience. Customers are people like us. They will not stay long if they are not valued.

How to fix it?

To achieve brand loyalty, you can use many tactics, such as investing in loyalty programs. You need to study your customers to design a winning loyalty program. It might sound expensive but is very helpful for customer retention. For offering unique experiences to your customers, creating a reward program is the best option. Customers like rewards, and they love to be a part of loyalty programs with better perks. Hence, a loyalty program is a good tactic to retain customers and make profits from loyal customers.

5. Not giving priority to customer feedback

If customers are valuable, so is their feedback. Most businesses entirely ignore the fact that customer feedback is important. Disappointed customers will share their feedback in the form of reviews, social media posts, or anything else. Failing to respond to customers’ feedback is a big mistake. It will ruin a brand reputation and also scare prospective customers when they see the feedback.

How to fix it?

It’s easy. Go through previous complaints, study them and improve your product or service. Follow up with dissatisfied clients and use social media to show them you take their feedback seriously. Studying these insights will prevent you from taking feedback lightly. Do not repeat the same mistake if you want to keep your loyal customers.

6. Ignoring Loyal customers

If you are focusing too much on new customers, you may lose your loyal customers. Offering perks and discounts to land new customers are fine but don’t ignore the existing customers. Customer retention starts with giving value to the loyal customers they are giving you profits and are already committed to the brand. You need their loyalty, so value them.

How to fix it?

Plan different strategies for both new and existing customers. Invest in a loyalty program, give rewards to your loyal customers for being valued customers and delight them at every step. They will love to stick around.

To wrap up

There are so many things you can do to improve customer retention. It’s all about finding the loopholes and acting on time. If you are doing everything right, you still need to think about the future as customers can leave anytime. A loyalty program is a way to curb customer churn. While creating a loyalty program you can consult top loyalty program companies for expert guidance. At Froogal, our loyalty experts will study your business like what delights your customers, and what makes them stay loyal. Thereby, offer effective solutions for your business to build a winning loyalty program.