As a business owner, you will agree with me that there is nothing more terrifying to a company than losing customers. Investing in a business and having people tell you they have gone with one of your competitor’s brands or products is not an easy pill to swallow. But have you thought about why you are losing business to your competitors? Or why your customers leave and never return? Here are some reasons and tips you may find useful.
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#1. Poor Product Packaging
Does your packaging speak to your customer? Does it protect the integrity of your formulations?
As discussed in one of my articles “Why You Should Give Your Product A Perfect Finish”, packaging in addition to its primary function of protecting the integrity of formulations also play a vital role in the marketing strategy surrounding your products. A well-packaged product in the absence of the manufacturer provides a prospect with the necessary information about the product. Although public opinion sometimes considers packaging to be superfluous, your inability to make the right choice of packaging materials may affect the choice of prescribers and consumers of your products.
#2. Poor Products Quality
How effective and reliable are your products? How well do your products match the customers’ need? Were they subjected to a number of tests before they were approved for consumption and marketing?
Although your packaging has succeeded in converting potential customers to buyers, it takes more than packaging to retain them. As a manufacturer, you need to always remember that customers expect a certain level of quality in exchange for their hard earned money. Most mistakes happen when you try to deviate from the norm or when you try to cut cost because of pricing issues.
Your ability to use excipients and production processes which allow your products to elicit its actions at the most appropriate time will go a long way toward making your customers stick to your brand. You can imagine how happy a patient would be if after taking your brand of paracetamol, he is quickly relieved of a headache. Believe me, no amount of conviction will make this patient try another brand.
#3. Focusing Too Heavily On Price
Do you focus on price instead of value? Do you sell products of little or no value to customers?
As you may know, the main task of any business organization is to create and provide goods and services that will attract and retain customers. You may be losing customers to competitors because you are offering your products at a higher price than your competitor and at the same time fail to provide value. Focusing on the value you create will help you retain your customers.
#4. Poor Company Reputation
Do you know what people say about your company? Do you know how your reputation compares with your competitors? Do you pay attention to most of the feedback you receive from customers?
Your business reputation comprises common opinion that people have about your business, based on their experience with your business. Creating and maintaining good public image gives your company an edge over other competing business in terms of survival. This is because consumers enjoy being associated with reliable brands even if your competitors offer the same products at different prices. Always remember that no matter how good your products are, you may likely to lose prospective customers to competitors if previous clients aren’t saying very good things about your company.
#5. Poor Marketing Strategy
Do you have a well-researched marketing plan for your business? Have you identified and fixed your marketing mistakes?
We tend to wonder why customers prefer competitor’s products to ours. It is simply marketing. Marketing is an often overlooked function that is critical to the success of any organization. Creating a marketing plan for your business helps it to define its markets, review its competitive position, develop goals, objectives, and determine the marketing tactics and financial resources needed to achieve its goals.
Failing to generate the required awareness about your products and services among customers can result in budget problems, low customer volume and, in a worst-case scenario, the closure of your business.
#6. Poor Customer Service
Do you actively listen to customers so as to better meet their needs? Do you act bored or apathetic toward or around them? Do you argue with them or refuse to accept fault when applicable? Do you hang up on or walk away from customers who are angry or upset?
The continuity of your company and the business it covers depends greatly on the value-existence of the customers and customer satisfaction. Poor customer service comes with dangerous side effects on your business. Not only do you lose customers, but you run the risk of losing your best workers. Excellent customer service exposes your business and gives room for repeat business as satisfied customers will continuously and unconsciously advertise your company/ products to others around them.
#7. Slow Response Time
How fast do you respond when prospects or customers contact you? Do you keep them waiting?
Every customer values time. Prompt response to their needs makes the customer feel valued and appreciated. The key to attracting and retaining loyal customers is to provide them with quality products and services within the required time frame. So don’t waste this opportunity of winning new business for your company simply due to a slow response time. Slow responses aren’t just frustrating customers, they cost you money. Even if your products are of high-quality, you increase your chance of being replaced by a competitor if your response time is horrible.
#8. Poor Online Presence
Do you have a cooperate website for your business? Have your company gotten active on social media?
Failure to build a good online presence will prevent you from showcasing your brand to the targeted audiences. An interesting point to be noted here is that a majority of potential customers would be searching for your brand’s name, prior to engaging with your brand directly. Take advantage of the boundless platforms to showcase your brand online.
#9. Focusing Only On Positive Feedback
How do you handle negative feedback? Do you respond to customer queries and complaints in regards to your products?
Though positive feedback gives you satisfaction and a feeling of accomplishment, negative feedback will show you precise improvement areas. Always respond positively to negative feedback as this will show your customers that you care about them and that you value their opinions.
What would be your #10 reason why customers choose a competitors product over yours? Let me know in the comment section below!