Branding: 5 key reasons why brands lose customers

Every brand aiming to win the hearts of loyal customers must continuously strive to improve its products or services. Quality plays a huge role in this system. When it starts to decline, doubts may arise among customers about whether it’s still worth staying in that relationship. There can be many reasons for such a situation, including shortened production processes, lowered standards, or simply neglecting quality control.

Let’s say your favorite restaurant suddenly stops serving dishes with the flavor you were attached to. You start wondering if you should continue going there, right?


The world is changing, and with it, customer preferences evolve, and new innovative solutions emerge. Brands that don’t keep up with these changes or underestimate the importance of investing in the development of their products or services may be ruthlessly sidelined, with competition taking over.

In today’s dynamically evolving business environment, being inflexible and conservative can lead to a significant loss of consumers.

Customer Dissatisfaction

This is another crucial aspect; customers are becoming increasingly aware of their rights and expect brands to listen to and then respond to their needs. When these desires are not met, consumers can feel neglected and immediately turn to the competition.

Currently, communication between the seller and the consumer is more two-way than ever before, with customers having access to hundreds or even thousands of platforms where they can voice their opinions.

Even the biggest players are not immune to controversy

In the age of social media, information can spread rapidly. Scandals, unethical marketing moves, or controversial statements can provoke strong reactions among customers, who are generally not inclined to approve of such behavior. This can lead to a mass migration to other brands offering similar services.

Many consumers operate under the principle of “I buy from companies that share my values.” So, if a brand cannot maintain consistency between its actions and declared values, it may lose trust and loyalty.

Volkswagen in the Hot Seat

One example of a brand that unexpectedly and swiftly lost customers is undoubtedly Volkswagen, due to the emissions scandal that erupted in 2015.

The company admitted to installing software in its vehicles that falsified emissions test results, making the cars appear more environmentally friendly than they actually were.

This scandal sparked massive outrage not only among customers but also among investors, the public, and the media in general. Many consumers who trusted the Volkswagen brand felt deceived and disregarded, resulting in a loss of trust in the brand and a significant drop in car sales.

To make matters worse, the company had to contend with numerous lawsuits, legal investigations, and regulatory sanctions, all of which severely damaged its reputation. So, was it worth it?

What else can lead to a sudden loss of customers?

Pricing and value: When a brand fails to deliver adequate value for the price of its products.

Changing preferences: Sometimes, consumers opt for something else, perhaps due to a deteriorating health condition or financial situation.

New management in the company: A change in leadership can affect the company’s operations, sales techniques, or even the quality of services.

Lack of community engagement: Brands that are unwilling to engage with customers, for example, through social media, may miss out on something very important.

Of course, we can all agree that every case of customer loss is different and may have its own causes. The examples above serve as a sort of guide, informing us of actions to avoid.

If you represent a brand or are considering taking on that role, remember that a customer’s choice is not just a one-time transaction but a potential partnership for many, many years.

Mateusz Rozynek