We will explore reasons such as lack of product information, failure to meet customer needs, unfair pricing, Brand distrust, lack of engagement and unreliability of after-sales service. Understanding these reasons will help you improve your products and services to attract and retain customers. In this article, we will explore 6 reasons why customers do not choose your branded products and how to solve this problem.
Despite marketing efforts, businesses still cannot sell products? So is the problem due to marketing, sales or the business’s own products?
Customers don’t know about your product yet
One of the reasons why customers do not choose your branded product may be because they do not know, see or hear about the product. No one will decide to buy when they do not know about the product.
Lack of product knowledge is the reason customers do not choose your branded products.
Solution
The best way to solve this problem is to take advantage of the spread of Social Media and marketing techniques such as SEO, paid Advertising, content marketing, etc. so that your brand has a better market coverage rate.
One study found that people are up to 71% more likely to purchase a product or service when it is recommended through social media.
If you have been marketing but customers still do not understand the brand information, it is time to review your marketing activities.
The reason customers don’t choose your branded products may be due to the price.
Salsify research shows that 58% of consumers abandon purchases due to high prices, with 39% of those increasingly focusing on budget-friendly options.
Many customers make buying decisions based on price, they may not buy from you simply because there are other competitors selling cheaper without necessarily offering the best value.
Pricing too high can reduce purchase rates.
Solution
Businesses can improve this problem by re-pricing their products based on customer demand or market conditions.
In addition, businesses today also tend to use discount vouchers, promotions, discounts, etc. to reduce the strict psychology of price as well as stimulate purchasing behavior.
The product does not provide value for money
Another reason why customers don’t choose your branded products is because they don’t deliver value for the money they spend.
Solutions to overcome the reasons why customers do not choose your brand products
To overcome this barrier, businesses need to focus on improving products to bring the best values and benefits to customers.
Don’t forget to add perceived value with service experiences surrounding the purchase process, such as free consultation, suggesting suitable options, giving gifts, etc.
Another option you might consider is to reprice your product to match your customers’ perception of value. However, it’s important to note that the new pricing must still ensure benefits for your business.
Businesses are not reaching the right target audience
Not targeting the right audience is one reason customers don’t choose your branded products and no business wants to encounter it.
According to a Forbes survey, not identifying the right target customer is the biggest reason why 80% of small businesses fail in the first 18 months.
A typical example of a business reaching the wrong target audience is the famous Australian coffee brand Gloria Jean’s Coffees. This brand targets high-end customers, successful businessmen with high incomes in Vietnam.
However, this is a rather demanding customer segment and only accounts for a small part of the residential market, which is mostly workers. Choosing the wrong target audience has forced Gloria Jean’s Coffees to withdraw from the Vietnamese market.
Identifying the right target audience is the most important task.
Solution
The solution to this problem is that businesses must identify who their target customers are, whether the products they provide really meet the needs of that audience or not, and if so, start finding the right way to approach them.
Businesses can identify target customers through the following steps:
- Market research: Collect information about potential customers, competitors, market trends and growth scale, etc.
- Market segmentation: Divide your potential customers into smaller groups based on criteria like demographics, psychographics, geography, or behavior.
- Identify target customers: Businesses need to consider a number of questions to make the right choice, such as:
– Is this customer group most likely to buy?
– If choosing this market, is the business sure to meet the demand?
– In the future, what is the size and development potential of the market?
– Who are the competitors serving this market segment? What are the barriers to market entry?,…
There are no customer reviews that have used the product.
Customers always need a certain amount of trust and assurance before deciding to buy, especially when it is a high-value investment.
Surveys show that 56% of shoppers need to consult reviews from previous customers, otherwise they will abandon their purchase.
Therefore, if your product has no purchases or reviews, it will obviously have less chance of being selected.
The reason customers don’t choose your branded products could be due to the lack of objective reviews.
Solution
To increase the level of trust for the target audience, businesses should have campaigns to stimulate, call for feedback, and provide genuine, engaging reviews and feedback from previous customers.
Besides, businesses also need to make efforts to build brand image and reputation so that users always feel comfortable when buying products regardless of whether or not there are reviews from other customers.
Take Vegetology, a company that sells plant-based supplements. Their reviews are located at the bottom of the product page and are often hidden. Overall, it is difficult for customers to access and read reviews from previous buyers when they visit the website.
To solve this problem, Vegetology added a comments section to the top area of the product page. This section displays all the reviews from customers, right where you can see them as soon as you visit.
Adding the proof of purchase section resulted in a 6% increase in the company’s conversion rate and a 10.3% increase in unique purchases.
Customers do not clearly understand product benefits
Research by Marketing Sherpa has shown that 64% of customers are more likely to buy if products clearly list the benefits they provide.
Through this, it can be seen that completely communicating product benefits to consumers is especially important, directly affecting customers’ purchasing decisions.
If they can’t see and clearly understand the benefits your product offers, they certainly won’t spend money on it.
Solution
To solve the problem, businesses first need to make an effort to understand customer needs and ensure that their products meet those needs.
Then, clearly explain to the customer how the product will solve their problem and why choosing it is the best and right decision.
Finally, businesses need to ensure that they always use clear, easy-to-understand language when communicating and interacting with customers.
Our article above has provided 6 reasons why customers do not choose your branded products. Hopefully this information will be useful and support the business process of enterprises.
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