In the last 12 months, I have switched business and current bank accounts, car, home and pet insurance, broadband provider, gas and electricity provider and in the process, saved hundreds of pounds a year. In some cases, I switched because my existing providers did nothing to keep me; in other cases I was simply shopping around on price and in a few cases, I was driven away because of poor service. I suspect in another 12 -18 months, I will switch again.
My reason for thinking about this was that it was recently reported that switching mobile network provider is set to become easier from July this year in the UK. This adds to the list of services which can already be switched easily, for example current accounts, utility and insurance companies.
In fact, it has never been easier to take your business elsewhere. Throw into this mix price comparison sites, constant bombardment from brands with offers across social media and there is absolutely no reason to be loyal to any one brand or company, especially when you consider that certain companies charge their loyal customers more than new customer for the exact same service.
So as a business, what should you do? Should you just accept that today's consumers are fickle, with low attention spans and put your efforts into lowering your cost of new customer acquisition? (It is still widely thought that it costs five times as much to attract a new customer, than to keep an existing one).
Or, do you create an elaborate loyalty programme with membership and points and special offers to retain your customers?
Or, do you just treat all customers fairly and in a way that you would like to be treated?
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