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In today's increasingly sophisticated bakery marketing landscape, our customer base remains highly volatile. Improving customer loyalty is a constant challenge for bakery managers. Customer fluctuation often signifies market shifts 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 business operations.
Customer churn is primarily caused by the following factors:
1, Bakery staff turnover leading to customer loss This is a significant cause of customer churn, especially the departure of senior marketing managers, which often leads to the loss of their associated customer base. Due to the nature of the profession, bakery marketing personnel represent a large and unstable workforce. If not managed properly, 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 become targets for competing bakeries. Be aware that your main competitors may be using various persuasive tactics to lure your key customers away. Every bakery brand or product has weaknesses, and competitors are quick to exploit them.
3, Overlooked details causing customer departure Customers and bakeries are linked by a mutually beneficial relationship, but emotional connection is also crucial. Oversights in certain details can lead to customer loss.
4, Treating customers poorly due to the size of the business Treating customers poorly is a common phenomenon in bakery marketing. The stringent market policies of some well-known bakeries often burden smaller customers, causing them to leave. Or they may harbor resentment and leave at the first opportunity.
5, Imbalanced bakery management leading to smaller customer departure Marketing professionals know that "80% of sales come from 20% of customers." Many bakeries establish large customer management centers while neglecting smaller customers. Advertising and promotional policies often favor large customers, causing 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 from smaller customers would still be 200 million, and the profit margin from smaller customers is often higher than that from larger customers.
6, Natural attrition Some customer loss is natural, due to poor bakery management, lack of communication, or customers changing careers, etc.
Customers are the foundation of every bakery. Without customers, we cannot survive. Therefore, we must attract new customers while retaining existing ones to minimize customer churn!
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