As every business owner knows, acquiring a new customer is more expensive than retaining an existing one. In fact, most sources agree it is between 4 to 10 times as costly, with some going as high as twenty-fold. Consequently, it’s important to keep your clients happy and loyal. The alternative? Money wasted.
Unfortunately, customers will often move on, often through no fault of yours. Businesses will fold, requirements will change and trends shift. However, there will be occasions when a customer jumping ship could have been avoided.
If customers are moving on, it’s important to understand why. But where is the best place to start? Here are six reasons why your customers might be going AWOL…
1. Mistakes happen
From time to time, things go wrong. It’s normal. Rather than seeing any mistakes as fatal blunders, remember that research has demonstrated that once you’ve solved a client’s problem, they’ll actually be more loyal than before. So, it’s important to resolve any issues with your customers as quickly as possible, and make sure you make the solution as stress-free as possible. Asking a customer to jump through hoops and quoting your company policy isn’t going to win you any lifelong fans.
2. Shiny things
For any business, it’s natural to want to operate at the forefront on the industry and offer the newest, most innovative products. Everybody loves the next big thing, but it’s important to be careful. While you’re searching for the next shiny thing to sell, don’t forget about your bread and butter products. Similarly, don’t forget about your bread and butter clients. They pay your bills.
3. Cheap as chips
From time to time, a customer will consider leaving for a cheaper competitor. Ask yourself, do you want to be the cheapest supplier in your industry? Is that all that matters? If not, and your products and services are priced reasonably, stick to your guns and focus on offering a quality service. The goal is to offer great value.
4. Musical Chairs
If your customers frequently have contact with your team, make sure you’re not hiring and firing regularly, rotating positions unnecessarily or watching as team members regularly walk away. In many cases, clients will come back again and again because they like to do business with your employees. Customer relationships are the lifeblood of any small business, so why break them needlessly? If you want to foster long-term relationships, you need long-term employees.
If high employee turnover is an issue, rectify the issue immediately.
5. When push comes to shove
Up-selling to your existing customer base is a no-brainer, but make sure you don’t push them away. Offering a solution to a known issue or asking if you can help with anything else is great, but badgering customers might send them running for the hills.
6. Forget me not
It might hurt to admit it, but some customers might just forget about your company. Even if you spent thousands on a logo and a catchy slogan, it might not be enough. Staying on their radar is preferable, so ask them to follow your social media accounts, join your mailing list and download your app.
Over to you
If you are struggling with customer retention, work through these reasons one by one and see if anything strikes a chord. Just one small change could be a game changer for your business. Good luck!
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Is your online store up to scratch? Navigating ecommerce can be tricky and expensive. Get it right and the rewards can be enormous. Get it wrong and you can blow a fortune – and lose a lot of customers. At Nettl of Bury, we can help you find the right ecommerce platform for you. For more information about our Ecommerce Web Shops, get in touch with our team today.