A few things lead customers to decide that your business isn’t worth their time or money, and your product or pricing rarely play a role. Remember, customers who leave obviously found your business valuable initially; in fact, approximately 80% describe themselves as satisfied with a business shortly before they head to a competitor. So, what’s the catalyst?
Your customer service is lacking
Whether you haven’t assembled the best team or you don’t have strategies in place to handle the issues that crop up when dealing with the public, poor customer service drives customers away in droves. You, and your team, need to maintain a customer focused attitude, know your products and services, and identify how those products and services can best be used by each individual. It’s not enough to be friendly and greet everyone with a smile – customers need your guidance and care, and if they don’t get it from you, they’ll find it elsewhere.
They don’t feel valued
Turn on the television – how many absurdly cheap promotions are offered only to new customers? A lot. Unless your business is the equivalent of a cable or internet provider, which typically has minimal local competition, you can’t get away with the same tactics. Reward loyal customers and avoid huge discrepancies in what you’re offering to new customers. Remember, it’s cheaper to keep your existing customers happy than it is to rope in a new one; and, your loyal customers spend significantly more per transaction and over the course of their relationship with you than those who just come in for a new customer deal.
Your employee turnover is too high
If there’s a new person every time a customer walks in your door, gives you a call, or shoots you an email, customers subconsciously lose trust in your brand. No amount of brand voice development, customer engagement, and quality products and services can make up for the personalized service an established employee provides. A familiar, friendly staff member who knows how to assist customers, whether by helping them find the perfect winter coat or guiding them in putting together a flawless menu for a catered party, is beyond value when creating loyalty.
They think you’re indifferent
The number one reason customers decide to go elsewhere? They think you don’t care about them. In fact, it’s the reason 60-68% of customers drop you and choose another business. A lack of personalized interactions, failing to respond to requests and reviews, canned responses from customer support, hard selling when your customer walks through the door, and failing to engage them online leaves customers open to competitors who make them feel more wanted.
If you’re noticing an excessive churn rate and sales are made up of mostly new customers instead of returning customers, it’s likely one of the above issues is playing a role in people’s decision to not return. Pinpoint the problem, work to resolve it, and start wooing lapsed customers back. Personalized service, exceeding expectations, and ensuring your staff is topnotch prevent competitors from swooping in and chipping away at your base.
