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Jun15
The Effect of Products Being Unavailable

The CRM blog has a post about businesses who are consistently out of products and the result is a loss of business as customers go elsewhere to shop. 

"...high customer attrition is attributed mostly to unavailability of products, according to research by the Institute of Grocery Distribution (IGD)....

In some cases, especially where brand loyalty is exceptionally strong, it becomes a case of retailers losing valued customers. Following continuous instances of preferred brands being unavailable, customers will take their business to rival stores....

IGD says that it is often a case of products being moved across shelves, rather than being sold-out, that contribute to the notion of unavailability. Retailers should thus improve “availability” by assigning dedicated shelves and counters for products..."

Where I live, I haven't had much experience with businesses that consistently have product unavailable. I think it's unwise to move product around, especially in a grocery store.  


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