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14 Types of Customer Defection

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Customer defection is a common term for the loss of a customer to a competitor. There are several common reasons that customers leave:

Brand Value

A decline in your brand value. For example, a luxury brand that discounts too often resulting in a decline in brand image.

Customer Relationships

Customers who don't feel that your value their business.

Customer Service

Poor customer service experiences frequently result in a customer defection.

Ease Of Use

A competitor who makes things easier for customers. If you require customers to jump through a lot of hoops to get things done, they may defect.

Fairness

People tend to have a strong sense of justice. They may defect due to perceptions that practices such as legal terms, conditions, rules or practices aren't fair.

Innovation

A new technology or approach makes your products less competitive in the market.

Involuntary Chun

Factors that are unrelated to your business such as a customer moving to another country.

Needs

A competitor better meets your customer's needs with features or services that you don't offer.

Price

Firms that charge loyal customers a higher set of prices or that face intense price competition.

Quality

The perception that your products or services are low quality.

Reputation

A decline in reputation such as a financial, social or environmental wrongdoing.

Risk

A perception that you represent a risk. For example, customers may defect in great numbers if they think that you may go out of business.

Trends

Changing preferences such as fashion trends.

Unpopular Features

Features that customers find invasive, annoying or cumbersome.
Overview: Customer Defection
Type
Definition
The loss of a customer to a competitor.
Also Known As
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