On average, loyal customers are worth up to 10 times as much as their first purchase, according to a survey by the White House Office of Consumer Affairs. The same survey reveals that it’s 6-7 times more expensive to acquire a new customer than it is to keep a current one. So if business owners across all industries know the value of building customer loyalty, why is it also so easy to lose that loyalty? Here are five of the most common reasons customers switch brands or services:
#1 Lack of Personal Attention
Loyal customers don’t buy from businesses, they buy from the people who are the face of that business. In fact, 73% of consumers say friendly customer service reps can make them fall in love with a brand. The strongest customer loyalties are built when employees interact with customers in a way that conveys, “I see you, I hear you, I understand what you need, and I’ll make it happen.” Think of a business that you’ve purchased a product or service from for at least a year and chances are high that you can put a face or at least a voice and a name to that brand.
#2 Not responding quickly enough
This customer complaint often piggybacks on #1’s lack of personal attention. If you fail to greet your customers by name and then don’t follow through with delivering a great service or resolving a problem, your customer will not only have any emotional investment in remaining loyal they will also be irritated that their needs weren’t met and will go elsewhere.
#3 Customer Service Slips
Many businesses frontload the effort when it comes to obtaining new customers, but then make the mistake of thinking they can put less energy into continuing to treat established customers as if they are just as valued. Nearly 50% of customers report they would take their business to a competitor within a day of experiencing poor customer service.
#4 Waste Their Time
Numerous surveys, including from Consumer Reports Research Center and American Express, reveal that customers are most frustrated when a business interaction causes them to lose time, either because their call or inquiry isn’t answered promptly, or they are transferred to numerous people, or their question is never answered or their conflict isn’t resolved. Poor customer service that leads to lost time is a quick one-way door to the competition.
#5 Cost Them Money
It’s often necessary and expected to offer discounts or incentives to land new customers, but established customers will quickly notice if their loyalty is not rewarded and newer customers are getting better deals. According to GfK MRI’s The Survey of the American Consumer, nearly 50% of consumers will gladly and quickly switch brands for a coupon or discount.
Today’s consumers expect a lot, and fortunately call answering services that are staffed 24/7 with professional receptionists can help you keep your customers happy and loyal. At Voice Link of Columbus, Inc., we offer month-to-month service agreements to meet the needs of any business regardless of size. Secure HIPAA/HiTech messaging, appointment scheduling, and customized communication solutions save you time and money while optimizing customer care. Our excellent reputation, expert staff, and state-of-the-art technology will exceed your expectations. Request information online or call us at (800) 262-2799 for a free consultation.
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