Customer Retention and the Role of Ethics

As an experienced and proven debt collection agency operating across the whole of the UK, Cobra Financial Solutions wanted to explore a very interesting topic this month- how the role of ethics impacts customer retention in today’s day and age.

In 2018, retaining customers in a world of choice is both challenging and complex. Customers have increasing expectations and competing on price alone is often no longer enough to entice many customers. Here, we examine if business ethics has a key role to play…

We live in an age when consumers have more choice than ever as to where to place their custom. And, unsurprisingly there are many different attitudes and preferences driving consumer behaviour. Brands can no longer simply rely on being the company that offers the lowest price; non-financial concerns are also becoming increasingly important when it comes to supplier choice.

The role of ethics

As the rise of the activist consumer continues, many UK companies that find themselves on the wrong side of a negative headline as they fail to attract and retain customers.

Companies that focus on developing a positive public image and commit to doing the right thing are often finding themselves ahead of the competition, even those competitors that base their offering on a low price point.

The commercial impact of ethics

Falling foul of an ethical scandal can present serious financial challenges for businesses, and impact on long term business success.

A recent prime example of this is the emissions scandal at Volkswagen. A collection of negative headlines were aimed at the car manufacturer after it emerged that the company had manipulated emissions scores for some of its models. As such, Volkswagen witnessed a drop in vehicle deliveries, resulting in a big hit on revenue. The negative headlines didn’t help their sales.

A brave new world

Businesses are under increasing pressure to put ethical concerns and better practices at the heart of their strategies and operations. The rise of social media and the ability for customers to easily share news and opinions on brands only adds further pressure. And it is very real for many, many businesses up and down the whole of the United Kingdom.

Those companies that fail to recognise and act on this may well find themselves falling behind their competitors; and it may not be a situation that is easily recoverable.

Here to help

If you are a business and are experiencing B2B (business to business) debts, get in touch with our skilled team of professional debt collection agents who will be happy to assist you. Working hard to get back what is rightfully yours, Cobra Financial Solutions are here to help!