Customers will leave, it doesn’t matter how loyal they are. Some leave and come back, some leave and never come back. But why? Why do customers leave? Understanding why customers leave is the first step in building a customer retention strategy. You can’t solve a problem if you don’t know or understand what it is and why it exists. We’ve compiled a list of four of the more common reasons customers leave and a few strategies to fix them.
- Poor Customer Service or Quality
82% of customers have stopped doing business with a company due to lack of customer service or service quality (often percieved poor quality). Customer retention requires a proactive and consistent strategy to ensure customers are quickly responded to and engaged with your quality processes. Know your customers and have communication options in place that meet their needs. It can be as simple as weekly emails, or, more advanced techniques such as sending Quality KPI reports on a consistent basis. Anticipate their needs and wants and try to handle any potential issues before they crop up.
- Lack of appreciation
53% of customers have switched companies because they have felt under or not appreciated. Offering value added service to customers like monthly account manager meetings and quarterly budget reduction strategies will be appreciated by customers and help keep them engaged. Treating them the same as new customers goes a long way, they don’t want to feel like they’ve been placed on the back burner because you took on new customers. Take the time to send thank you letters/emails, ask for feedback, see if they have questions, and confirm that they received recent services.
- Neglecting technology
Technology is connecting customers and businesses like never before. It’s why 71% of business owners say it’s essential to their success. Instant communications means customers have high expectations, little tolerance for incompetence, and short attention spans. They expect faster results and transparency. Leveraging technology can go far with customer retention. Make sure your website is responsive so it’s easy to view and navigate on any device. Providing a secure customer portal allows convenient access for requests, on-line communications, and data. Mobile apps help improve field service delivery. Tech is advancing so quickly, be sure to stay on top of what’s available.
- Staff issues
Employees are your first point of contact and often the sounding board for your customers. If you can’t keep them employed and happy, don’t expect customers to be happy and stick around. Make sure your staff is well trained and well versed on your service requirements. Position front line employees to answer questions and assist in solving problems for customers. Building relationships with your customers means they are less likely to leave. If your employees change like your socks, you won’t be able to build and foster those relationships.