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In today's increasingly sophisticated bakery marketing landscape, our customers remain a highly volatile group. Improving customer loyalty is a constant challenge for bakery managers. Customer turnover often signifies market changes and adjustments, and can even have a devastating impact on local (regional) markets if not handled carefully. If you are a bakery manager, it is crucial to stay vigilant to prevent unintentional customer loss and its negative effects on your bakery's operations.
Customer churn is primarily caused by the following reasons:
1, Bakery staff turnover leads to customer loss This is one of the major causes of customer churn today, especially the departure of senior bakery marketing managers, which can easily lead to the loss of their corresponding customer base. Due to the nature of the profession, bakery marketing personnel are the largest and most unstable "mobile army" for every bakery. If not properly managed, their departure often results in significant customer loss.
2, Competitors stealing customers In any industry, the customer base is finite, especially high-value customers, who are highly sought after. Excellent customers naturally become targets for various bakeries. Be aware that your main competitors may be using emotional appeals, logical arguments, and incentives to lure your key customers away. Every bakery brand or product has weaknesses, and competitors often exploit these vulnerabilities, seizing any opportunity to gain an advantage.
3, Overlooked details drive customers away Customers and bakeries are linked by a bond of mutual benefit, but emotional connection is also crucial. Oversights in certain details can often lead to customer loss.
4, Treating customers poorly due to the size of the business Treating customers poorly due to the size of the business is a common phenomenon in bakery marketing. The harsh market policies of some well-known bakeries often overwhelm smaller customers, causing them to leave. Or they may be disengaged, promoting products with reluctance. At the first opportunity, they will leave.
5, Imbalanced bakery management leads to smaller customer loss Marketing professionals know that "80% of sales come from 20% of customers." Many bakeries have established large customer management centers, while ignoring smaller customers. Advertising and promotional policies also favor large customers, causing many smaller customers to feel neglected and leave. Don't underestimate the 20% of sales from smaller customers. For example, for a company with annual sales of 1 billion, the sales generated by smaller customers would be 200 million, and the profit margin from smaller customers is often higher than that of larger customers, resulting in a substantial amount.
6, Natural attrition Some customer loss is natural, due to irregularities in bakery management, a lack of long-term communication with customers, or customers changing careers, etc.
Customers are the foundation of every cake shop's production. Without customers, we cannot survive. Therefore, in our daily operations, we must attract new customers while retaining existing ones and reducing customer churn!
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