Lose a Customer Suddenly Without Any Explanation? The Answer Could Be Offer Erosion.
Not to be confused with Brand Erosion, a term referring to the deterioration of brand identity, Offer Erosion occurs on a much more tangible level. As we know, good products and services often rise to the top of the market. Buyers instinctively seek them out in order to maximize value. At the same time, companies succumb to the never-ending drive to produce returns for investors.
Cutting costs is quicker and easier than producing new product offerings. Sometimes, this comes in the form of delivering less to the customer for the same amount of money. Small reductions in value (ie a slight price hike here, a reduction in features there), may go unnoticed by the customer until a clever competitor presents them a product that looks head and shoulders better than their current vendor’s.
Have you ever seen your product or service erode over time? Can this be avoided? Please comment with your thoughts.
Sincerely,
Meaning2work