The Number

Why do customers choose one company over another? MyCorporation.com, an online legal service firm in Calabasas that helps entrepreneurs form corporations, conducted a survey in September to answer that question. Entrepreneurs cite service as reason customers choose their business The survey queried business owners – not necessarily MyCorporation customers – through an online polling service with a multiple-choice question, Why do customers choose your business? According to those entrepreneurs, customer service was the top reason, with a 50 percent response rate, followed by the product or service the business provides at 43 percent. Price came in last at 6 percent. Kelsey Goeres, marketing associate at MyCorporation, said many small companies can’t compete with established rivals on price so they focus on providing better service. “It’s no surprise that customers want to be treated well, so much so that often they’ll pay a bit more if it means getting a better customer experience,” she said. “We think that’s why the price factor was so low.” The results, posted on the MyCorporation website, also include quotes from entrepreneurs. Many credited a superior touch with customers for their success, although those selling to an unusual niche cited the product or service. “Customers choose my business because I make beautiful, one-of-a-kind pieces, and I’m the only designer who specializes in jewelry for wine lovers,” wrote Nancy Kanter of Sparkling Vine Design, a jewelry studio in Thousand Oaks. Goeres said MyCorporation hopes the survey will inspire other entrepreneurs to ask questions about why customers choose their business. “Separating yourself from the competition is a huge part of being successful as a small-business owner,” she said. “After reading the article, they’ll know that most small businesses feel their biggest draw is their customer service.” – Joel Russell