When customers end up his relationship with suppliers, he breaks the loyalty with him. Following are the reasons which are responsible for loyalty break ups:
- Customer dis-satisfaction: Customer dissatisfaction is the primary reason that results in breaking up the continued loyalty with the supplier. Most of the unsatisfied customers try to find more prominent alternatives which results in their migration. In most of the cases the customer does not even complain about the dissatisfaction and simply divert their way to other supplier.
- Tough competition and new options availability: Vivid competition also acts as a breaker of loyalty as it gives customers new options which are exposed in the market and are sometimes better than before. These new options results in enhancing expectations of customers which leads to accelerating break ups in relationship between supplier and customers. This happens because the existing customer’s supplier is unable to fulfill their demands in an appropriate manner.
- Enhanced product features and advance technology: Due to the abrupt change in market conditions, inheritance of advanced technology in all ranges of products and service is inevitable. If the supplier is unable to follow the process of continuously updating technological related aspects of products and services he may loose customers as they divert in search of technological sound products and services. Apart from the advanced technology, if the customers get enhanced and user friendly product features then it acts like additional incentives for them to migrate.
- Customer expectation: Expectations of customers can go way beyond expectations of supplier which results in breaking loyalty. If supplier is not able to meet customers’ expectations then obviously customers would look for better alternatives. These expectations can be related to cost, quality, product service, efficiency, durability or any other aspect. Many a times these expectations could be unrealistic or unreasonable due to the market scenario or some external business pressure. Under this kind of situation it is becomes very difficult for an organizations to meet all the expectations which result in sudden divert by breaking loyalty bond. Any supplier which comes close to these unrealistic and unreasonable expectations of customers could retain him easily.
- Customer Attitude: Customer attitude plays a vital role in breaking up the loyalty with existing supplier. This is because some customers have a habit to try new options and change business tactics. Even if they are fully satisfied with the existing supplier they would attempt a change for the sake of getting new and better option or because of any change in business rules and tactics. These types of customers are experimental in nature and try to be innovative and creative by taking high business risks. These customers are supposed to be least loyal because they less likely to be attached with any sort of bond with single supplier. To retain these types of customers is a pain for all the suppliers and they generally try to change their attitude by inheriting some business tactics in their marketing strategies.
- Product Services: Providing products with low or bad service components will result in ending up loyalty with customers. Customers not only use the products but also demands valuable and spontaneous service. Hence apart from manufacturing good and sound products it is very important for the supplier to provide enhanced service components along with the product which will act as a roadblock for customer to divert.
- Market recession: Some unrealistic situation in global market which affects the allover economy of a country could also be a reason in ending up loyalty bond with customers. Under this situation called ‘recession’, intense cash flow problem is seen. This leads customers to cut-off expenses incurred in business and may lead to divert to other suppliers in search of low cost but reliable products and services.
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