10 Reasons Why Companies Fail to Generate Leads
There are many reasons that companies fail to attract a new customer. While customers are the main factor in the success of any business. By building an excellent customer base that has the loyalty and credibility of your brand and the products you offer that will attract new customers.
But many companies fail to do so! There are thousands of companies that offer the same product or service so the competition is very strong!
You need to attract new customers by getting 10 main reasons why companies fail to attract new customers into your consideration.
1. Identifying incorrect target customers
Your company may fail to determine the group of target customers on which your business is based. Usually, those customers share the same demographic characteristics.
Thinking of the considerations that follow:
- Income level
- Education level
- Marital or family status
Besides, think of the Psychographics characteristics that related to the personality of an individual’s:
The above characteristics are the main points to consider when selecting the target group of customers that are willing to purchase your product or service. If your company fails to identify the target group, it will definitely fail to attract new customers.
2. Identifying the wrong communications channels
Are your new customers on social media? Or do they prefer to use email? Or do they want to see the reality of your products face to face?
Identifying the wrong communication channel leads your company to fail to attract new customers. It is sufficient to know the best communication channels by collecting essential data about your new customers. That’s not enough to use a single communication channel. You need to diversify the usage of communication channels so that your company can attract as many new customers as possible.
Some of the greatest communication channels you should consider:
- Social media: Facebook, Twitter, YouTube, Instagram, Pinterest and LinkedIn
- Paid ads
- Company Website
If you don’t grow to the communication channels correctly. You don’t have to achieve your business goals in attracting new customers.
3. Lack of knowledge of your competitors with whom it shares with you at the same field
Imagine that you have a competing company that offers the same product that you offer and is continually developing to attract new customers. While you are standing in your place, don’t move!
This prompts new customers to turn to the competing companies that offer more innovative products than you, so you lose new customers. You may also lose your existing customers.
Your ability to gain a competitive advantage is what ensures the success of your business. This is not easy, so you need to determine your competitive environment in terms of:
- The number of your competitors
- The amount of work they provide
- The success of these companies in the market
- Pricing their products
After you identify your competitors rightly, you can now ask yourself:
What can I offer to my new customers to distinguish my company from my competitors exceeding their expectations?
4. Identifying wrong strategic goals
Most surveys have shown that up to 67 percent currently, the vast majority of strategic planning fails. It’s mainly because the standard way of thinking about strategic planning is completely backward.
The goal is an essential part of any business to ensure that you run well and successfully. You need to develop a precise strategic plan and implement it step by step to keep your business growing. We suggest you use the smart goal strategy.
- Specific: Define clear, significant and accurate goals.
- Measurable: Define the measures that you will use to determine if your objectives have been achieved.
- Achievable: Set a goal that you sure you can achieve it at a specific time.
- Realistic: Set reliable, Rational, practical and resourceful, outcome-based goals.
- On-Time: Define a specific period to complete every single goal successfully.
You can create simple, attainable and concrete goals if you use SMART, and build the inspiration, action plan, and resources required to achieve them.
5. Weak work team and internal capabilities
Your company may suffer from many disagreements that happened between team members. It suffers from the inappropriateness of these employees to the jobs they do. The lack of work to develop the products and services they provide best suited to the current time, all of which ultimately leads to the company’s failure to attract new customers.
One of the main reasons for the weakness of your team and the internal capabilities of your company is:
The lack of employees training to suit the requirements of the technological era and the development of the creative side.
Your teamwork may fear experimenting with new solutions. Unleash your teamwork of creativity and expression by creating new ideas and providing support and appreciation that drives them to continue.
6. Poor Marketing
Marketing is one of the most main challenges your company may face. Some big companies that have spent millions of dollars marketing their products but have failed to attract new customers!
So what are the reasons for your product failure?
This may be due to your failure to use one or more elements of the marketing mix. Incorrect use of one of them may result in you failing to market an entire product.
The 4Ps of marketing to consider ensuring the success of your product in the market and attracting new customers:
Define the product or service that will be presented in the market is known to attract new customers. You must understand the product’s lifecycle and make plans for each stage of it.
Define the price of the product toward its value, in addition to the costs of supply, delivery, etc. Sometimes intends that discounts on products must be placed to attract new customers.
That means to reach the target market by selecting where the most considerable number of potential customers are attracted to purchase.
What methods will you use to promote your product to reach your target audience? Is it through social media ads? Or via emails? Or through public relations?
By promoting your product, you show potential customers how important this product is and create a need and a reason to buy your products.
Companies use the 4 Ps to define several main factors for their business. Including what consumers want from them? How their product or service meets or does not meet those expectations? How do they perceive their product or service in the world? And how they engage customers?
7. Lack of interest in existing customers
You may forget your existing customers and focus solely on attracting new customers while existing customers are the key to attracting other new customers by verbally marketing your products and speaking positively about them through social media and other media that reach to attracting other new customers.
You need to take great care of existing customers by maintaining your strong brand reputation with your existing customers.
Nevermore ignore that sales to current customers usually have a greater impact on your bottom line, while new customers generate an immediate top-line impression.
8. Ignore new customers and not pay enough attention to them
Have you ever wanted to buy or inquire about a product through online stores or social media? But when you contacted they delayed replying, pushing you to look for another store.
Ignoring your customers and not answering their queries quickly prompts them to look for other alternatives so you’re losing potential customers.
A special team must be assigned to respond to customer inquiries quickly and provide the right solutions to the problems they face. They need to be prompt in all ways, whether responding to Emails, Social Media, your site and other means.
Giving your customers the freedom to leave their opinions and comments about the products and services you offer. It is an excellent way to evaluate your business line productivity. It pushes you to improve your business and keep you in touch and interact with your customers.
9. Identifying wrong pricing
Does your product pricing depend on the associated costs? Or on customer perceptions of the value of your products?
The wrong expectation of the pricing that the customer sets for your product is one of the reasons why you failed to place the pricing and therefore failed to attract new customers.
The Simon-Kucher & Partners’ Global Pricing & Sales Research 2017 conducted among almost 2,000 companies found that the current price implementation rate is 32 per cent.
Always price-for-value that will help you maximize profits. Besides, make the value you offer higher than your customers’ expectations by correctly predicting what they are ambitious and following other competitors in the market.
10. Lack of partnerships
Your lack of partnerships means you lack the expertise, knowledge, information and resources to deliver better products and attract more new customers.
Partnerships enhance your business talents, capabilities and competencies, and they are more fun and effective in decision-making processes.
Always look for clear, easy-to-treat partners. Seek who has the creativity and financial support to boost your business and achieve your company’s goals of attracting new customers.
Having identified the most important reasons why your company may fail to attract new customers. You should consider it to avoid the failure that you may encounter. Or, that you may have already faced.
Also, always remember that failure exists to learn from your mistakes. It is a motivation to improve and develop new strategies for your company to attract as many new customers as possible.
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