Businesses that destroy value lose loyal customers
I used to be a customer of a photo website. Once, I purchase around $30 of photo credits that I could utilize later(instead of typing in the payment details all the time) . A few months later, I got a mail from the photo company, claiming that my credits are going to expire soon, if I don’t utilize them.
It may be that I missed reading the TOC when I purchased the credits in bulk. Thus, I ended up purchasing the photos before credit expired. When I had credits, I used to visit the site and often purchase something. Now I have stopped doing that and I am looking for alternatives. I do not visit the site anymore because I do not want any more soon to expire credits. Also I have started looking for alternatives.
Why do companies/people create a blog? There is a cost involved in for example writing content, marketing and maintaining it. They do it to keep the customer/potential customer coming back. They do it to increase the recall value of their business.
Why do stores advertise themselves in newspaper, radio, TV etc.? It is to get the customers to their shops. If customers never visit the shop, they will never buy anything.
The photo website above destroyed the value when they expired my credits. They could have increased the price of their photos but instead they chose an easy way out. That means they lost
potential future sales
the perceived value of buying credit and using them whenever I wanted to
Here are a few takeaways
Do not destroy the value of business for your customer. Customer will not view raising prices as bad (business has to face rising costs) but the loss of value ( as perceived by customer) is going to hurt a lot.
No visit to your shop/website/blog means no sales
If your customer is just browsing your catalogue and he has not purchased anything does not mean he is never going to do it.