tawandamusarurwa
Big Business Ideas
Stephene Chikozho
IN Africa and beyond, effective branding is arguably the most important thing when it comes to ensuring the success of a business.
Branding entails a set of expectations, memories, stories and relationships which — taken together — account for the client to choose one service or product over another.
If your business does not give the market the company’s story to talk about, the market will define your brand’s story for you.
As such, it is important to build a stellar reputation, shape perception plus differentiation and clarify what it is you offer that makes your product the better choice.
Branding is vital because not only is it what makes a memorable impression on consumers but it also allows customers and clients to know what to expect from your business.
In that regard, brand switching occurs when your long-term customers or clients choose to purchase products or services from a different brand.
It arises when, for example, a customer who buys the same brand of Kenyan tea for 10 years, decides to switch and start buying a new brand of Zimbabwean tea.
If not actively controlled, the long-term effects of brand switching to a business are gradual or significant loss of sales and market share.
Why customers switch brands?
Price or affordability
Clients often switch brands if a more affordable option for a product or service is available. When switching brands, they typically seek items that have a similar value to what they normally purchase. If the product or service a customer usually buys exceeds a certain price point, it may also lead to brand switching.
For example, if a customer is planning to buy a mobile phone, they may consider purchasing one from the same brand as their current gadget.
They may also consider prices of mobile phones from different brands that have similar features. When making a final purchase decision, they may choose the lower-priced option, regardless of previous brand loyalty.
Customer experience
If a consumer thinks that a company offers superior customer service, they may begin purchasing products and services from that firm.
In some cases, companies attempt to attract their competitors’ customers by focusing on improving client service and publicising the changes in their customer service approach.
For example, a borehole drilling company may announce that it offers one year of personalised customer service after installing a borehole on a client’s farm. This can help the dealer to differentiate itself from its competitors, which may encourage clients to switch brands.
Brand fatigue
Sometimes consumers try a new product because they are seeking variety or interested in trying something different from what they usually buy. Researchers refer to this as brand fatigue. In the retail marketplace, brands often release new products, which can prevent brand fatigue.
A brand may also use the novelty of a product as a selling point, which may attract new customers and encourage brand loyalty.
In other cases, rebranding is the answer to mitigating brand fatigue.
Innovation
As technology evolves, so do customer brand preferences. When a company releases a product that incorporates new technology, it may encourage competitors’ customers to switch brands.
Additionally, if two companies offer products with technological features at the same price point, customers may switch to the brand that offers a product with more features.
Convenience
In some cases, a product simply becomes more convenient for a consumer to purchase.
For example, if a nearby hardware shop stops stocking a particular stock feed brand, a customer may purchase products from another brand rather than travelling to another hardware outlet.
A product may also become more or less convenient for a customer based on compatibility. For example, one brand’s television set may be easier for customers to use than another brand’s, which can encourage brand switching.
How to reduce brand switching
Adaptation
Companies need to maintain a relationship with customers to better adapt to their needs and desires. Understanding and adjusting products and services based on customer needs can help a brand stay relevant in a changing market.
This may prevent customers from switching brands and can foster brand loyalty.
Provide value
Providing customers with a product or service they value is one way a company can maintain customer loyalty. Requesting customer feedback and engaging in product testing to learn what clients value, and identify aspects of products that may need improvement is vital. This can help the company you work for compete with other brands effectively.
Another way of providing value to customers is maintaining price competitiveness. This often means offering a desirable product that is similar to a competitor’s at a lower price.
Improve customer experience
Effective customer service can lead to brand loyalty. Consider improving the customer service of the business by communicating that the brand cares about its customers, and offering clients a positive experience.
One can do this by reducing the amount of time it takes for the business to respond to customer questions and concerns. Increasing brand transparency may also help customers have a positive experience with the company.
Address criticism
Since consumers can easily post reviews of products and services on websites and social media platforms, brands often receive both positive and negative feedback from their customers.
While it is important for a company to acknowledge praise, addressing criticism quickly can also prevent brand switching.
For example, if a customer posts a negative review of a product online, a brand should respond by offering to solve the problem, which can help foster customer loyalty.
Maintain customers’ interest
When customers become interested in innovative products rather than the ones they usually buy, it may be due to brand fatigue, which can lead to brand switching. Furthermore, it is important to rebrand or launch a new marketing campaign to maintain customers’ interest, and prevent brand fatigue. Also offer promotions, rewards or other deals to attract customers with competitive pricing.
Conclusion
Focusing mainly on what your business can do better than competition is one effective path to success. A business is a living organism; it has to continue to shed its skin, hence reinventing and adapting should be your collective mission.
Stephene Chikozho is the managing director of Urbane Create Agency — a strategy, marketing and advertising agency. He writes in his personal capacity. You can follow him on social media (Instagram, Facebook, Twitter, LinkedIn) WhatsApp +263772409651 , or email [email protected]
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