Classy Business

It’s always frustrating when a client leaves. Most likely, a lot of time and energy was spent prospecting and then serving that individual or business. And now, you’re left with nothing. The main reason why people stop doing business with others has been identified.

Studies show that 68% of customers leave because they feel they are being treated indifferently, not because of a “bad” experience, poor quality products, or better pricing somewhere else. That’s why it’s so important to be sure your clients feel valued and appreciated.

Actually, and to be accurate, it’s only one of many reasons why you should always be gauging your performance when it comes to generating customer loyalty. For example: Studies have shown that loyal customers spend more money than new ones. Keeping people happy should keep them coming back. One auto service firm made three times as much profit from fourth-year customers as they made from first year customers in the year they were surveyed.

In order to achieve overall growth, you must retain your existing customers. And, as noted above, the best way to do this is to add value continuously and, thereby, ensure clients never feel they are being treated indifferently.

An average company, losing 15-20% of their customers annually, would double its growth rate simply by cutting defections in half. So, why is it then that so few businesses call customers who stop dealing with them to ask why? Your customers may not always be loyal, but they’ll have their reasons. Identify them and use this information to improve your business by adding value for the both the joy and profit of it.