Customers represent the most valuable asset of any business. In fact, they are our main concern and any situation that involves losing them is a risk we must avoid at all costs. But saying it is easier said than done. It is a path where creativity and perseverance go hand in hand. So that you don’t have to ask yourself, why does my company lose customers, we advise you to read on.
Losing an asset that we already consider consolidated is a failure generally attributed to our business behaviour. Something is wrong when we cannot retain someone who already knows us. Customer retention is based on trust and permanent contact. They are paths that run together and must be travelled with a certain degree of preparation. In fact, successful customer retention promotes:
Based on the points presented above, we can see that customer retention is a fundamental aspect of business activity. It would then suffice to make negative the statements presented above to understand the disastrous impact of customer churn. Fewer sales, inability to meet budgeted revenue amounts, closing off possibilities for new contacts or offering other services.
Losing a customer has an additional negative multiplier effect. It is a bad recommendation or at least a neutral one that is not in our interest at all. Urgent measures need to be put in place, the first of which is to understand why customers are lost.
As we said before, the first action to control this situation is to diagnose it. Knowing what are the reasons that make a person leave you halfway through the journey, responds to many factors. All of them are controllable and under your direct responsibility, because beyond the imponderables, you should always have a backup plan to protect yourself from this situation. Here are some of the reasons why you lose customers, in the expectation that you will be able to resolve them immediately.
This is a fairly common problem in cases such as very large companies or companies with large customer portfolios. Permanent interaction is necessary so that you are not forgotten. The problems that make them ask for your product are always there and if you don’t make permanent contact, someone else will do it and replace you as a supplier. This is an important issue, not only for the generation of leads and final buyers, but also for aspects such as accounts receivable or unattended claims that will diminish the positive impact of other strategies.
In this same area you can place after-sales service, which is essential to maintain retention at optimal levels. You should not abandon your customer because they have already spent money on your product. On the contrary, if they feel cared for, they will recommend you, and this service is much more important than the product itself.
Let’s start from the basic principle that interactions are fundamental. But they may be so numerous that it is impossible for you to answer all calls, so to speak. Well, another fundamental factor relates to the loss of customers because we do not attend to them at the expected time. And this happens because we do not have tools to control interactions. Contact automation software is and will always be necessary in these times of mass and digitalised markets.
This is a complex issue, because it is about the real needs of your customers. When offering a product, you must be aware of its necessity for the potential customer. You may sell something unnecessary, but you will probably do it only once and you will irretrievably lose the customer because he will associate you with the uselessness of the object. It is a matter of basic business psychology. Nowadays, the reasoning is different, don’t sell something that is not really necessary, this offers you intangible advantages, such as security and confidence in your word.
Again, attention to detail is critical. Your product is a flagship for your brand. If it is good, or at least meets the minimum quality requirements, you can count on a loyal customer. But if it is not, the loss may be irremediable. So the ideal in these cases is to maintain an exhaustive quality control, capable of detecting faults before reaching the customer. And, if necessary, deal with the complaint by replacing the item or improving the service, even at no cost to the customer. Remember that losing is also winning.
This is a crucial point. If the customer finds it difficult to communicate with you, the time will come when, despite the quality of your product, he will get tired and abandon you. We live in times of high competition, another supplier will be able to satisfy him. So the idea is to make their user experience the easiest possible journey, to get them straight to the solutions and that will result in a better perception of your company.
Even though processes are becoming more automated and digitised every day, we still require human contact. Machine responses are cold and distant and many customers do not tolerate them willingly. One sign of this as a certainty is that artificial intelligence, which is determined to find ways to replicate natural human contact, must be for a reason.
These are just some of the details you need to take into consideration, aspects to assess and build an effective retention strategy. One way to stop asking yourself, why is my company losing customers? If you want more information about this, you will find what you need on this page.