A survey of more than 2,500 UK consumers has found that nine-out-of-ten (89 per cent) believe most brands put more effort into attracting new customers than looking after existing ones.
The research, which was carried out by The Grass Roots Group, revealed this leaves customers feeling frustrated, with nearly half (49 per cent) even considering to switch loyalties if a provider’s special offers were only available to new customers.
In today’s highly competitive market, it is imperative brands do not lose sight of the importance of retaining existing customers, especially when they opt to attract new business with exclusive special offers. More than half (55 per cent) cited loyalty rewards as an important factor when staying with a provider, demonstrating it is an area that must not be ignored to keep customers happy.
Commenting on the research, Ian Horsham, divisional director, promotions and incentives said: “It’s hard to go online or watch TV without being served up special offers for new subscribers or shoppers, making it all too easy for consumers to become fickle when it comes to loyalty to just one brand. Our research has shown that customer loyalty is being compromised and people will switch brands if they feel they are being forgotten or not given the same treatment as new customers.
“Brands are becoming complacent when it comes to customer retention. They concentrate too much on securing new customers, leaving others to feel undervalued. With the cost of customer acquisition five times greater than keeping existing customers happy, this strategy could have a huge impact on revenues and future business success. A loyalty scheme should go hand in hand with a new customer programme, as a key part of retaining them once they have made the decision to switch.”
The research was carried out in June 2014 and surveyed 2,610 UK consumers about their relationships and loyalty towards suppliers including phone and broadband, utilities, insurance, banks, supermarkets and car manufacturers.