Businesses failing to fight for their customers

Our latest consumer research discovered that many companies are missing a trick by failing to empathise and react when a customer contacts them to say they are thinking about switching supplier. 40% of customers revealed that their supplier made no effort to retain their business and let them leave without putting up a fight.

But, given that 14% of consumers were convinced in the last year to remain with a business when they were considering switching, businesses must put more effort into effective customer retention strategies, as the rewards are clearly there for those that do.

Our research also revealed the main frustrations consumers experience when they switch, with the top four being:

1. Poor customer service (31%)
2. Supplier transparency (28%)
3. Suppliers making errors/mistakes (19%)
4. Unexpected delays to the switching process (17%)

In fact, only 50% of consumers who had switched a service provider last year, described the switching process as smooth and simple. The remainder described it as less than perfect with one in ten consumers telling us it was difficult and frustrating.

Of course, for some, this attention could come too late. Understanding customer needs, rewarding loyalty and taking a proactive, tailored approach to retention may benefit in reduced customer losses, but there is a balance to be made to ensure unwanted contact does not cause further frustration.

In addition, businesses that switch off to customer needs during the switching process may risk losing that customer forever, when actually there is every chance they may come back at a later date; not impossible considering most consumers review service providers annually.

Businesses should focus on attempting to satisfy and keep hold of customers at every stage of the relationship. However, for those that can't be retained and do choose to leave, ensuring the switching process is as smooth as possible will help to leave customers with a good final impression.