“If you are losing customers to your competitors it might be because you don’t have a very good website,” – McKay Allen
Competition and conflict are common phenomenon in the natural world and have emerged as major aspects that define modern commerce. Every business enterprise operates in and thrives in competitive modern markets and must primarily work to expand its customer base. The vicissitudes of modern markets can create situations wherein a customer may choose a competitor over an existing business enterprise. This is normal when we consider the fact that modern customers are offered a plethora of choices in terms of brands, products, services, and commercial offers. Therefore, it is incumbent upon businesses to analyse the causes that underlie such a situation and initiate action that is designed to remedy the same. We could state that such a situation emerges when customers are confused with market offerings, when certain businesses offer a short term incentive to gain customers, and when a new competitor enters an existing market.
Enterprises that cater to mass markets must constantly innovate their product and service offerings in a bid to stay relevant in the market. The downside of a failure to do so can encourage their customers to choose a competitor. This may disrupt business operations, retard the process of commercial expansion, and may create a situation wherein, the business may lose customers even as the competition gains ground. One of the primary reasons behind this situation could be a lack of customer outreach. Every business should work to develop this aspect because outreach can help build customer confidence in an incremental manner, boost business goodwill, and raise the profile of a business in the public eye. Therefore, any laxity in this aspect of commerce carries the risk of customer migration and a dipping sales curve. We must note that mass markets can be temperamental and businesses should work consistently to expand their customer outreach programs. This can be accomplished through a steady stream of tiny discounts offered to regular customers, free gifts with every purchase made during the festive season, carrying out a regular conversation with shoppers, among others. These techniques can help businesses to avoid a situation where customers choose a competitor over the said business.
High technology businesses should make it a priority to offer customers top notch products and after sales services. This implies that the business values its customers, is serious about its market image, and invests substantial efforts to create high quality products. For instance, a software manufacturer can choose to survey the market and create bespoke products that address a gap in said market. Quality marketing strategies can be fashioned and executed in order to introduce the software product in said markets. The business should monitor instances wherein customers prefer to choose a competitor and address the reasons to reverse any commercial losses. We must note that a careless approach to sales or customer service can accelerate the forces that lead to customer attrition. In addition, a lack of management initiative can create obstacles in business operations, thereby ceding priceless customer segments to the market competition. Further, a lack of momentum in addressing customers’ concerns and suggestions may encourage customers to choose a competitor. These issues should be clearly marked and addressed with alacrity so that the business enterprise may thrive in competitive markets.
A careless approach to marketing or a less than impeccable attitude towards publicity campaigns can build up negative forces that may force clients and customers to choose a competitor. For instance, a small processed food manufacturer must invest substantial resources to market its wares. This should be a sustained and consistent effort because such activities can help to broadcast and elevate said brand in public markets. Any inefficiencies in said processes can erode the brand image and may lead to a loss of sales momentum. We must note that the negative outcomes that emanate from a lack of seriousness will likely accumulate over time and lead to a loss of brand reputation, customer confidence, and depressed sales volumes. We must also bear in mind that sloth in such actions can negate other business operations such as new product development, the consistent generation of quality products, etc. In light of the above, we note that publicity campaigns and product advertising represent the lifeblood of any business. Therefore, these actions deserve fair amounts of corporate resources and energy at all times.
The creation and cultivation of a distinct competitive advantage should be a watchword for every business enterprise. This advantage cannot emerge from thin air and therefore, businesses must invest time, effort, and energy in the creation of such intangibles. A lack of competitive advantage may drive an enterprise out of competitive markets and may force customers to choose a competitor. For instance, a cement maker can define its competitive advantage through superb customer service. The said business can work with customers to define and create a superior product that has the potential to gain new swathes of an active construction market. This aspect of the business enterprise can help it to win new customers and to make its mark in virgin markets. However, the lack of said competitive advantage or a distinct competitive strategy may create turbulences in its business performance. This could lead to customer migration wherein, customers actively choose a competitor. One of the dangers that emerges from such carelessness is manifest in the fact that customers may broadcast their lack of satisfaction with the products generated by said enterprise, thereby hastening its commercial demise.
Broken promises can be lethal for a business enterprise and the fallout of such actions can encourage a customer to choose a competitor. For instance, a trading house needs to make good on its promises to its suppliers, vendors, and customers. This should be accomplished in a timely manner and must be executed consistently. Too many instances of lapse in terms of failed business commitments can lead to the serious erosion of customer confidence, thereby irreversibly denting the commercial prospects of the said business. We may note that such negative situations essentially highlight a lack of commitment to business ideals and could lead to a situation wherein, the said stakeholders are forced to choose a competitor. The loss of goodwill and brand reputation aside, the said enterprise exposes itself to punitive legal actions when it fails to close its accounts in a manner deemed satisfactory by all stakeholders.
In the preceding paragraphs, we have examined some of the situations that can drive customers away from an enterprise and force them to conduct business with competitors. We must note that such situations must be averted at all costs by every business enterprise that remains interested in long term business performance. Entrepreneurs and corporate chieftains must analyse the data that emanates from business operations in order to assess the efficacy of doing business, set course corrections as required, ideate to boost the creation of tangible business value, expand the customer base of the business, and conduct regular conversations with major stakeholders. These actions should be pursued with sincerity and interest because any slack in these matters may create negative outcomes, trigger the flight of customer dollars, disrupt business operations, and mar finely cultivated business reputations.
