Studies show that the main reason why customers stop buying a product is not because they are unhappy with it. Actually, only around 15% of customers stop buying for that reason.
Research suggests that about 70% of customers stop buying because of how they were treated by an employee and because of the service they received. If you can identify specific reasons for why the 70% stopped buying, you will have a better chance of keeping your customers.
In this article, we will explore the significance of distinguishing your service from competitors and its role in retaining customers who may otherwise consider switching to alternative companies.
So Why Should Customers Choose Your Service Over Your Competitors?
Many successful new businesses enjoy longevity because they often understand the need of their customers. Having a good product or service does not guarantee sales or constant customer patronage or loyalty.
As a business owner, you need to talk to your customers and keep an eye on what people are saying about your business. This will help identify the problem areas in your business. Understanding consumer needs is crucial for companies to create and implement strategies for customer retention.
Let’s take a look at a Nigerian bank.
This bank noticed that they weren’t meeting the need of their customers through low usage of the bank services and products. So, they conducted market research and used their customer data to analyze account history and demographics. They used this information to identify customer preferences and, create targeted marketing campaigns.
For example, they noticed a high percentage of their customers are farmers. So, they created a campaign that targets this group with tailored agricultural services like loans, insurance services, and advisory services for farmers.
How to Differentiate Your Services From Your Competitors
To differentiate your service from competitors, it is essential to identify and highlight the unique value proposition of your company. This includes, but is not limited to superior service, or a wider range of products.
It is also important to not just rely on your own assumptions about customer needs. You should also listen actively, and ask them questions like;
- What do you want?
- What do you think can be improved? and,
- What do you like about our service or product?
That way, you can tailor your service to what they actually want and need, rather than what you think they want and need.
Quinn Cully, Product Manager said,
Customers should choose your business over the competition because you offer a unique combination of value, quality, and service that sets you apart. Your personalized service and tailored approach to customer needs and preferences help build trust and loyalty. It also helps you build your commitment to excellent customer service and support ensures customers can count on you to meet their needs. Titilope Toluhi expanded on it more here…
Market Research is a step in the right direction to enjoying a long-lasting relationship between consumers and your brand. Webhaptic Intelligence gives you tailored insight and original data to have that. Get in touch with Webhaptic Intelligence or send a message at info@webhaptic.com