Why Do Customers Buy From Your Competitors? Because They Can
Here’s something to think about: Unless your business has more than 50% market share (highly unlikely) then the majority of your potential customers are buying from your competition.
When I say that to the stereotypical ego-driven business owner, their reaction is often a scrunched-up facial expression. “That’s only because customers don’t know how much better we are than the competition”, they’ll say. “If only we could get the word out – better marketing, sales, etc. – we’d be top dog.”
Sure, better marketing and lead generation will increase market share. But a reality many CEOs or CMOs fail to admit to themselves is that, sometimes, customers are happy buying from elsewhere.
Perhaps it’s that, regardless of industry, most businesses today do a pretty good job of serving their customers. Sure, some do it better than others. But if there was some kind of “customer satisfaction threshold” for the businesses selling in your market space, most of them would pass the minimum level.
Every business is upping their game – they have to. Apart from the occasional outlier, businesses have had to improve the presentation of what they sell and how they sell it in order to stay in business. Perhaps that manifests itself in creating an improved product or service, delivering more effective marketing, providing a better buying experience, or all of the above. No matter what it is, that threshold level continues to move upward.
Every Business Looking To Deliver A Better Customer Experience
The internet has had two major influences on this position. Firstly and most obviously it’s brought customers and brands closer together. No longer are you limited to buying a widget from the store downtown when you can buy it from pretty much anywhere in the world. In order to remain relevant, organizations have had to reconsider the value they’re providing over and above the supply of the product or service concerned.
The second effect has been in terms of a social proof quality buffer. In the old days you’d buy a widget from someone, find out it wasn’t very good, resign yourself to never buying from that place again, and move on. Today word of mouse – social media, online reviews, etc. – means poor quality has fewer places to hide.
Customers Buy Elsewhere Because Of How You’re Treating Them
Do you know what the biggest source of lost revenue is for your business? It’s not your product, your pricing, or your distribution. It’s not your branding, marketing, location, or even your competition.
The biggest lost source of revenue for your business is the customer you didn’t even know about.