Competitors Help Your Customers Switch
In the digital age, competitors are always lurking and eager to switch-away your customer.
A while back, my firm surveyed more than 500 executives representing a wide cross-section to B2B and B2C industries . Consider this eye-opening finding: 59 percent of sales reps and 43% of marketing execs reported using switching tools to reduce the hassles customers encounter when moving their accounts.
For example, banks have long relied on the HooK Principle to retain customers. Direct deposits for social security and pensions, monthly withdrawal of insurance fees, utility bills, etc. have long kept customers tied to banks they just as well leave.
But now competitors across many industries are wising up. They are removing the “red tape” that frustrate customers by offering clever switching assistance. The tools include helping fill out paper work, fee waivers and welcome gifts. Some have designed “switching kits that clarify steps customers can follow to move the account.
Lessons
- Know the signs of customers preparing to leave.
- In banking, moving a “direct deposit” is a big clue.
- A customer who pulls back on the number of product lines bought from you is another.
- Monitor closely the behaviors of your best customers. They are at the top of your competitors “most wanted” list.
This is a post as part of my blog series about Earning Customer Loyalty in a Digital World. Along with sharing what I know, I’ll be reaching out to experts for their tips on making the most of digital platforms. Whether you are a solo contributor, small to medium-size business owner or play a role on a Corporate Team (or some combination), I’ll be writing with you in mind. LinkedIn, Instagram, Facebook, Facebook Marketplace, Twitter, etc.—there’s lots to learn!
And, readers, please let me hear from you — Many of you are thought leaders and experts in your own field. Please share your knowledge and call me out when I have something wrong. That way, we can be on this learning journey together!