5 Reasons That Make Customers Less Loyal

Shalini Rath Shalini Rath
Oct 1, 2022 5 min read
5 Reasons That Make Customers Less Loyal
The content of the article was contributed by Dhruv Verma, founder of Thriwe and hence contain quotes from him.

In business, the term 'loyalty' carries a lot of weight. Customer loyalty, on the other hand, is of major concern now for many businesses.

Consumers that are loyal to a company or product will pick it again and again because of previous favourable experiences. Now, this is the kind of loyalty businesses are always seeking to retain their status as market leaders. For a business, customer loyalty plays a massive role in upscaling its brand to greater heights.

Some studies show the chance of selling to an existing client by a brand is between 60% and 70%, whereas to sell a new customer is between 5% and 20% only.

Off-late with the rising competition and innovation among businesses and organisations, businesspeople are finding it challenging to keep up with their customers' loyalty for a longer period.

Here is what Dhruv Verma of Thriwe says about customer loyalty, "loyalty must be pinned back with the β€œEsteem needs” from Maslow’s hierarchy of needs theory. As long as the esteem needs are getting nurtured and fulfilled, loyalty remains intact for every customer."

Indeed, the needs of customers these days do not depend upon the service that they were using before, it is all about going for the latest trends no matter which brand is offering them.

He further adds, "The paradigm shift in customer loyalty has ushered from the perspective that there is a constant evolution of esteem needs."

As per Forbes reports, 68% of consumers worldwide are more devoted to firms and organisations that make it quick and convenient to interact with them.

Reasons That Can Make Customers Less Loyal

How to Retain Customers?

Reasons That Can Make Customers Less Loyal

We now know for a fact, how customer loyalty is so important, let us understand some points that can impact a customer's relationship with their brand.

Loyalty Management Market Size Worldwide (2020-2029)
Loyalty Management Market Size Worldwide (2020-2029)

Failing to Keep Up With Customer Expectations

A lot of brands aren't able to keep up with customers' expectations. The reason is customers expect a firm to be always in pace with customer service in the constantly changing ecosystem and lifestyle needs. If a brand fails to do so, then it exposes the organisation to the risk of diminishing consumer loyalty.

With the constantly evolving ecosystem, customers want a company to be at par with customer service, but failing to do so, brands do feel the heat of declining customer loyalty - Dhruv Verma, Founder of Thriwe

Lack of Unique Relevance to Customers

Sometimes, customers do not show any emotional attachment to the particular brand if they don't find it relevant to their needs. In this process of keeping a consumer engaged, firms provide repetitive rewards and perks, while the other brands also provide the same giveaway. As a result, the rewards do not stand apart from the competitor's reward. This tends to render the agenda obsolete and of little importance.

To keep a customer engaged, companies give rewards and benefits that are redundant in nature, the competitor brands are also giving the same giveaway that you as a brand are giving to customers. Hence, when the rewards are not well thought of, it tends to make it a redundant program with little relevance - Dhruv Verma, Founder of Thriwe

Failing to Appreciate Customers

Customers are the lifeblood of every business. Every business must care for and appreciate its customers. Customers expect their brand to treat them well and receive outstanding treatment and services. It is mandatory for businesses to really meet their customer's expectations. If customers feel that they are not acknowledged during their interactions with the company, the firm will surely fail, even if they have the slightest chance to retain customer loyalty.

Every business runs because of customers if the customers are not appreciated during their course of interaction with the business, customer loyalty is definitive to decline Β - Dhruv Verma, Founder of Thriwe

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Easy Replicability of the Product or Service

Consumers look for uniqueness in every product or service they use. If a firm's product lacks a unique selling point, it simply means it is copied and accessible at a lower price, and then the company will almost certainly lose a price-sensitive consumer to a competitor. As a result, customer loyalty will decline. Businesses really need to offer some unique value to differentiate their products from competitors. In order to survive the competition, companies have to work more efficiently to attract the attention of potential buyers in the market.

If the company’s product doesn’t hold a USP of its own, it tends to get replicated easily and is available at a lesser value then a business is sure to lose a price-sensitive customer to a competition. Hence the reason for the decline in customer loyalty - Dhruv Verma, Founder of Thriwe

Lack of Consistency

Consistency means building trust. In life also, everyone wants consistency, because without it, there's no balance, and you cannot rely on a certain thing. In business as well, customers look for a brand in which they can put their trust and not worry about it. Inconsistency in branding can lead to poor brand awareness and push away all the loyal customers for good. For brands, it is imperative to stick to a particular brand voice or quality they have been providing since the beginning.

Customer loyalty, stickiness, and engagement with the brands depend on a whole lot of things and businesses should keep a close eye on the ever-evolving nuances of customer loyalty - Dhruv Verma, Founder of Thriwe

Conclusion

No doubt, organisations today are neck-to-neck with each other to remain at the top of the list of their potential customers. The solution not only lies in the above-mentioned points or just fancy marketing campaigns, but it is way beyond all of these. Companies need to have a clear vision and well-thought-out plans and strategies to make their customers always feel special.

FAQs

What makes consumers feel more devoted to brands?

As per Forbes reports, 68% of consumers worldwide are more devoted to firms and organisations that make it quick and convenient to interact with them.

What makes customers less loyal?

Major reasons that make customers less loyal are:

  • Failing to Keep Up With Customer Expectations
  • Lack of Unique Relevance to Customers
  • Failing to Appreciate Customers
  • Easy Replicability of the Product or Service
  • Lack of Consistency

What is the probability of selling to existing customers?

Some studies show the chance of selling to an existing client by a brand is between 60% and 70%, whereas to sell a new customer is between 5% and 20% only.

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