There should be a law about customer indifference, there are laws about almost anything else so why not about customer’s neglect, they are not a nuisance; they pay your staff’s wages and keep you in business so let’s do something about looking after them.
Consider for a moment how much energy and resources it took you to get their business and if they go how many new customers you may need to replace them with 1, 2 or may be 3? If you are trying to attract new business all the time it’s like trying to fill a container with a hole in the bottom, it will never be full no matter how hard you try.
The 80/20 ratio still applies today particularly in the current climate of financial uncertainty, so keep these numbers in mind 20% of your clients generate 80% of your business.
If you are like me and enjoy statistics the ones listed here may interest you, however my objective is to help you understand why you lose some clients but more importantly how to retain them.
Nothing is more harmful to business than apathy, it sounds hard? Just look at the statistics below they outline clearly the reasons why we lose business having this knowledge will give you the opportunity to plan a customer retention strategy. It’s time for action!
4% Natural erosion (moved away – passed on etc)
5% Referred to a competitor by their friend
9% Competitive reasons (price)
14% Product/Service dissatisfaction
68% Perceived indifference
John Gattorna a visiting professor at MGSM
SMH business blog , Posted by Kristen Le Mesurier 2.2.09
68% of customers perceive your business indifference, it sounds daunting. Well think about it, what are you doing to pamper your clients? And I do not mean offering them a foot massage at the nearest spa although it’s not a bad idea to thank them for their support an unexpected gift goes a long way and if you wait until next Christmas it may be too late.
I am actually recommending simple things such as: talk to them, visit them, make a delivery personally, do some of the things you used to enjoy doing before you got too boggled down by paper work.
So if perceived indifference according to professor Gattorna is the single most common reason customers are lost to competitors; pick up the phone and make some calls now! And listen to what they have to say don’t let them go home one more day thinking that you don’t appreciate them.
Times are tough and everyone is becoming more creative when it comes to saving money or getting better deals. Now is the time to make customers feel appreciated, re kindle their “trust”.
Article by: Ximena, firstname.lastname@example.org