Welcome to the first edition of our brand new weekly blog series, Marketing Myths. Each week’s installment of Marketing Myths will aim to bust a commonly held belief about marketing. Last week, we busted the “The Customer is Always Right” myth.
This week’s myth = Customers Don’t Shop Around
As marketers, we have a tendency to focus too much, if not all of our time on acquiring new customers. And who would blame us, growth is the name of the game in most industries.
But in doing this, we ignore existing customers, perhaps hoping that our product or service is so superior to the competition that once they experience it, they’ll keep coming back again and again.
The smart business minds among you already know that’s wishful thinking. But there is a common myth I encounter quite often, that a company’s existing customers don’t shop around, don’t invest any time or energy looking into alternatives and competitive products.
If you believe this myth, you’re in trouble. Consumers aren’t stupid. They are looking for ways to save money, because we have conditioned them to.
Your competitors aren’t stupid either. They are looking to take your market share away from you by enticing your customers with special offers and discounts.
Even companies with the highest amounts of brand loyalty, the lowest customer attrition rate, got there by doing more than just offering superior products. They care for their customers. They continue to engage with them long after their first purchase.
Ignore your existing customers at your peril. If you do, you are likely to find a revolving door effect, with new customers coming in, buying once, then moving on.
Stay tuned next week for another myth. If you have a marketing myth you’d like me to bust, add it in the comments below.