Customer Engagement: Acquisition and the Consumer Mindset
24 Sep 2019
In a crowded market, where brands constantly compete to attract the attention of customers, gaining the spotlight has become more a science than an art in recent years.
As we know understanding the customers’ mindset can be challenging, the DMA, in collaboration with Paragon and partnership with Foresight Factory, has conducted deep research focused on customer acquisition strategies.
Starting with the analysis of channels and communication that consumers use to learn about new brands and products, we then delved into the reasons why customers switch from one brand to another.
We found that in the last 12 months, six out of ten consumers (61%) switched to a different brand, whether that’s a new shampoo, phone or energy provider.
This is good news. Indeed, the majority of customers (64%) appear to switch as they get actively attracted by new brands rather than running away unsatisfied due to bad customer experience.
Most of the sectors we analysed are successfully attracting people to switch: 70% chose a different car brand, and 68% changed their supermarket brand because they felt attracted by a new provider.
However, the banking sector told a slightly different story as poor customer experience remains a strong motivation to switch (50%).
Data also reveals that, in general, big brands are losing out and new suppliers are winning. As Scott Logie, Chair of the DMA Customer Engagement Committee and MD at REaD Group Insight, said “this isn’t always true, but does show that interrupters can have an impact even in established markets”.
That is great reminder as Nick Barbeary, Client Development Director at Paragon Customer Communications, explains ”Whichever channel, and for whatever reason people want to switch, you still need to make your communications timely, relevant and motivating, creating consumer trust by offering them a genuine benefit. In this way, a customer’s family, friends and other influencers will complement your own marketing efforts and brand reputation through organic referrals”.
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