April 21, 2020 Insights

Understand Passive Customers Before They Quietly Leave

One day I was surprised to see a baby stroller looking spotless, almost new, after months of storage while my child learned to walk. I told the owner of the stroller-cleaning service how impressed I was. There was no discount for my feedback, but the owner offered a free shoe-cleaning promotion as a quick loyalty gesture.

I recommended the service to colleagues and relatives. The next day I sent in a baby walker too. The pickup and delivery were excellent. The items came back clean and fresh, and small repairs had been made. The staff had the skills to deliver a satisfying experience.

Excellent Service

On another day, I had the opposite experience with a healthcare service: it felt unfriendly and lacking in empathy, so we left and did not return. I shared that experience with colleagues and family so that it would not happen again. Not every service business has the skills to deliver excellent service.

When a competitor offers a lower price for the same value, customers may consider switching.

— Unung Istopo

There are many good service stories that people want to recommend. But businesses can feel safe when customers give no feedback at all.

Promoters, Detractors, and Passive Customers

Promoters and detractors are easy to notice. Passive customers are harder to understand. They may be satisfied, but the experience has not been surprising or remarkable. They tend to stay quiet, see the service as ordinary, and may be more price-sensitive. If another provider offers the same value for less, they may switch.

Passive customers may leave when they notice a shortcoming, without complaining or becoming detractors. That is a risk: the business may not lose new customers immediately, but repeat orders become less likely.

Customers who know a product well—often because they use several providers—can give valuable feedback. Promoters and detractors may be especially close to a product and quick to point out what needs to improve.

Businesses should make sure their products solve real problems and their service leaves a good memory. They can also involve customers in product development, both offline and through social media.

Customers remember more than product features, performance, and price. They remember the pre-sales, sales, and post-sales experience—and whether it built trust and a lasting relationship. Their voice can be a valuable source of direction for a product’s future.

Businesses also need to understand Generation Alpha, born after 2010 to millennial parents. ENCIETY Business Consult’s source article cited estimates of 35.35% of Indonesia’s population in 2020 and a projected 46.23% in 2030. This generation is growing up with the internet and social media, is highly active, and is less likely to keep its feelings to itself.

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