Consumer Angry Switching
Helen Strong
Angry Switching: Purpose
In the discussion on consumer purchasing behavior, we have examined what information is required to understand how consumers form their decisions. The angry switching model comes into effect when a consumer has been using your product or service and due to a negative episode decides to switch to another. The trigger can be internally or externally generated. The consumer’s needs could have changed or he or she could have some negative experience that may result in a decision to change the supplier.
Angry Switching: Structure and Description
The model depicts the drivers and decision criteria of consumers when selecting a brand. The change factors of an unhappy experience, new information, new technology, and competitive activity, power the forces that will bring down the original choice.
From experience in working in the advertising agency world, the author has seen that the factors that win accounts are not the same as those that lose them. Good marketing and advertising strategies linked with an appeal to creativity will win the award of an account. Failure to deliver on promises, incorrect media placements, and breakdowns in working relationships can all result in the loss of clients.
Susan Keaveney (1995), the originator of the consumer switching driver model, found that the failure of core services was the most common factor in a switching decision. That is, there has been an issue with service delivery process or administration associated with it. To view the original consumer switching driver model, refer to Keaveney (1995).
In the blog provider environment, an alternative model of service switching is investigated by Zhang, Cheung, and Leese (2012). They consider the push–pull–mooring framework, which comes from studies on population migration.
The angry switching model (see Figure 14.1) follows on the work of Keaveney (1955) and Zhang, Cheung, and Leese (2012). It includes the need to consider the type of product and industry in which the switching takes place. The model considers the strength of the decision based on the importance and number of reasons for choosing a particular product or service.
Angry Switching: Strategic Considerations
If the switching factors are monitored within an organization, there is less likelihood of losing a client or customer. By reducing the need to find new clients under pressure, the organization saves time, effort, and money. It also limits the distraction factor of having to focus on unanticipated client searches.
The information gathered to track possible problems has additional benefits. The awareness of the environment can help anticipate crisis situations such as production problems and cash-flow issues due to loss of income.
Preventing avoidable loss of clients manages the reputation of the organization. If parting is not amicable, it is possible that an exiting client will voice his or her dissatisfaction to the world at large—even if the full circumstances do not support an ex-client’s angry outpourings.
Angry Switching: Implementation
The factors featured in the model should become the substance of tracking studies completed to measure consumer satisfaction. That is, you need to assess:
• Industry churn norms (that is, the level of switching within the industry to which the organization belongs)
• The profile of switching behavior in your target market and customer base
• The characteristics of customers in relation to their switching behavior:
○ Determine how many different suppliers a customer uses at any one time. Then in the case of industrial markets, examine the organizational size, structure, and culture; in the case of consumer markets, assess demographics and psychographics.
• Target market related:
○ What are the barriers that prevent a customer from switching?
○ What aspects of your product or service are disliked by your customers and which may push them to consider an alternative supplier?
○ Have there been any changes in the customer’s needs?
○ What is the attitude of the customer to the company and its services?
○ Core service delivery levels against agreed standards, and against customer expectations.
○ What contact have the competition had with the customer, and what is their current offering? How attractive is this to your customer?
• Internal issues:
○ Have there been any incidents or problems with the delivery of your product?
○ Or any issues with the way in which the customer has been treated?
○ Has there been any change within the customer’s staffing, and processes, circumstances, or both that could affect your ongoing relationship?
○ Has your organization suffered from inappropriate actions or behavior that would alienate your customers? Did you anticipate and manage the incidents? Has the relationship recovered from this damaging behavior? (You will find this information via analysis of sales contact reports and production exception reports.)
• Marketing mix factors:
○ Is there anything missing from the marketing mix that would push the customer to consider an alternative supplier?
○ Is the organization’s unique value proposition relevant to customers and the target market?
○ Pricing:
• Has there been a change in pricing structure?
• How competitive is the product’s pricing?
• Is the value for money there or is the pricing extortionist?
○ Place or convenience:
• Has there been a change in opening hours?
• Do employees keep appointments on time?
• Have branches and outlets closed?
• Does the company have or need an Internet outlet?
○ Promotion or communication:
• Has there been a cutback in advertising and promotions?
• Has there been a change in the media used to reach the target market? (for example, dropping circulation and editorial orientation)
• Has the target market changed its media consumption patterns?
○ Product:
• Has the product changed in any way? (Why?)
• Has a competitive product become more attractive?
• Has the product moved with customer needs?
Angry Switching: Conclusions
Many companies appoint key account managers responsible for relationship management. However, an efficient management information system (MIS) should be in place to automatically monitor client interaction and highlight problems. One of the first indicators can be a drop off in sales. Hence it is vital to review key customer activities to identify changes in their buying patterns. Complaints by customers should form part of the monitoring system. Reaction to complaints has to be carefully handled and viewed as an opportunity to retain their loyalty.
The above-mentioned monitoring requires a systematic program to ensure that all the indicators are measured regularly. On its own, the cost of monitoring should not exceed the costs associated with losing a client. However, monitoring should cover information to support the marketing strategies and plan not just simply loss of a client.
In this day and age of increasing use of technology, organizations can reduce costs by moving to online service of customers. Awareness of switching factors can assist the marketing team address the benefits and fears of their customers when they want to migrate them to a different method of service delivery.
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