Consumers have come to expect companies to keep offering the services, experiences, and concessions introduced during the pandemic. The question then becomes which ones are worth concentrating on? A study of switch, stay, and pay motivators offers some clarity and builds on strengths to leverage new strategies.
Decisions need to be made around which offerings should be kept, rolled back, grown, or adapted. A look at switch, stay and pay motivators provides a risk/reward strategy for evaluating each resolution scenario. After all, companies have gone to great lengths to meet the needs of consumers over the course of the pandemic at great cost. Some of these costs are unsustainable. Given that some of what has been learned by customers may not be easily unlearned, it’s crucial to identify which to keep and which to get rid of.
It’s helpful to organize each offering into one of four categories:
Experiences consumers think worth switching providers for AND paying extra to retain. Example – Travel – Providing flexibility to delay or refund travel or switch bookings without penalty.
These offerings should be scaled and expanded upon as they are true differentiators. This is where the most opportunity is to attract new customers.
Experiences consumers think worth switching to retain BUT NOT worth paying extra to retain. Example – Banking – offering online appointments for advisory services and extended online service options.
Should be kept but retooled to make them more affordable. They have become part of the “new normal” so can’t be discarded. Essential to keep existing customers happy and to attract new ones.
Experiences consumers think worth paying extra to keep BUT NOT worth switching providers to retain. Example – Automotive – providing new car delivery instead of picking up.
Relaunch these by creating a premium tier of services as consumers may be willing to pay more in this category. Experiment with different offerings that can potentially unlock new revenue streams but do not have wide enough appeal to drive switching.
These are the ones to consider getting rid of because it makes more sense to invest elsewhere due to limited perceived value. These may be less meaningful in a post-pandemic world.
Experiences consumers think not worth switching providers OR paying extra to retain. Example – P&C insurance – using drone technology for inspections to enable faster claims processing.
Price and quality are no longer the only factors that consumers base their decisions on. Although still important, a wider set of motivations for at least half of all consumers have taken hold. Companies need to rethink their business in terms of how to provide a better customer experience.
This involves investing continuously to understand your customers’ evolving mindset and constantly listening and engaging with your customers every day. What you think you know about your customer is probably out of date. Reimagine the experiences the company delivers. Customers have never been so open to new experiences and forming new habits.
It may well be the case that a new business model is required with better pricing, different distribution channels or new revenue streams. By looking at offerings in terms of the consumer willingness to switch, stay or pay, companies are better positioned to meet the new consumer where they’re at and build new loyalty and revenue streams.