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08 Sep In Business Marketing
Why Do People Switch Brands?

Brand switching, or brand jumping as it’s also called, has always affected businesses. While the development of affordable technology has made access to small and medium brands easier for the average consumer, it has made the ability to switch brands much easier too.

How does brand switching affect small and medium businesses?
man switching light on
Switching brands can be as easy as… well, you get our point!

The switching economy is worth over £200 billion in the UK alone and 70% of consumers agree that technology has made it simpler for them to change brands.

Nowadays, consumers are also much savvier than ever before and not afraid to express their opinions and vote with their dollar, pound or euro. While in past decades brands could rely on brand loyalty and inertia buying, consumers today are more aware of value for money and are always looking for a better deal. And they’re not afraid to switch brands to get what they want.

This can be seen as either a positive or a negative for small and medium companies. On the one hand, customers are more willing to leave a big brand for a smaller one if they can offer a service or product that better aligns with their ideals. On the other hand, there is nothing stopping them from switching over from your brand to someone else’s.

How to prevent brand switching?
5 reasons consumers decide to switch brands:
  1. Outdated technology
  2. Marketing strategies
  3. Brand fatigue
  4. Bad service
  5. Value for money

When it comes to the use of technology and value for money, smaller and medium businesses are usually seen at a disadvantage against large national and international corporations. But this isn’t always true.

Physical technology comes at a cost that most SMEs simply cannot afford. Social media and a strong online presence can help counterbalance this and offer smaller businesses the chance to reach a larger number of targeted potential customers.

When it comes to value for money, the general rule is that the larger your customer base the cheaper your product or service will be to create or deliver. It’s common knowledge that smaller brands are generally more expensive. However, the final price is not all that matters to consumers, value for money and customer experience are much more important components. Ignore your customers ability to switch brands at your peril!

The other three main causes of brand switching can help small and medium businesses shine when combined. Customers grow tired and weary of the ubiquitousness of big-name brands and are always open to alternatives. With a good planned out marketing strategy and by offering ‘above and beyond’ service your brand could be the one they switch to.

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