losing customers
Business - February 8, 2022

5 Reasons You are Losing Customers

Customers are the bloodlife of any business, a loss in these assets can push stall business growth. 

As your sales staff go all out to acquire new clients, there should be a good balance between focusing your work on gaining prospects and avoiding losing existing customers.

According to a recent study by McKinsey & Company, only 13% of customers claimed they were loyal to a single brand. While 87 percent of customers indicated they shopped about and 58 percent had moved to a different brand. 

Customers are a company’s most valuable asset, and like any other asset, you must invest in and safeguard them at all costs. These assets serve as a dividing line between successful and unsuccessful businesses. Especially for small firms. Keeping a loyal customer base can be a life or death situation if not handled properly.

Selling to an existing customer has a 60-70 percent success rate while selling to a new customer has a 5-20 percent success rate.

Here are 5 reasons you are losing customers.

  1. You provided a bad customer service experience

Poor customer service is one of the fastest ways to ruin a consumer’s experience. Over 90% of customers who are dissatisfied with their customer service experience will simply not return, rather than telling you what’s wrong and how you can fix it.

So, if you’re not paying attention to your customer-service policy and performance, you can be losing consumers as a result.

  1. You’re having trouble getting the most out of your team

A company is only as good as the people that work for it, so it’s critical to understand what makes a high achiever successful. If you can locate it, you can use it as a template for training other employees. You may score and grade how your employees perform on the phone whether selling or dealing with client difficulties by combining training and coaching modules with evaluation technology. 

To assess call handling capabilities, a set of questions or areas can be created, and staff members can be evaluated on their performance, with coaching needs identified and training scheduled to address areas of poor performance.

  1. You’re focused on soothing the business, rather than the needs of your clients

Be prepared to highlight what’s broken in your company and needs to be fixed. Again, employing tools like speech analytics gives you valuable data, you can use to drive change and prioritise it in your company. For example, you might discover that your website’s customer login page is responsible for 20% of all phone calls, simply because it isn’t straightforward enough. It was designed from the standpoint of how the company thought it could operate, not from the perspective of the client.

  1. Putting a premium on price rather than quality

Always bear in mind that no matter how low you keep your product costs by squeezing your margins, someone somewhere is aiming to steal your clients by offering lower prices. To steal your clients, a larger business will easily undercut you.

Rather, you should always strive to provide the most value for their money. Factors your clients consider when determining values includes service, accessibility, scheduling, and even operating hours.

  1. Making too many distinctions between new and existing customers

Small businesses should keep in mind that acquiring new consumers is usually more expensive than keeping existing ones. Consider carefully whether or not to give discounts and incentives to new clients, as your present customers will notice this act of distinction on your behalf, prompting them to switch to the competitors.

 

READ MORE: What are the Biggest Challenges of Doing Business in Lagos?

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