Losing a customer is the most unpleasant thing that can ever happen to any business. But since we aren’t living in any perfect world, we tend to lose them more often to our competitors.
A recent analysis by Accenture reveals that a business loses over $1.6 trillion per year when any customer moves away from them. So, it’s essential to consider the reasons and act fast to retain them. Although the weak economy and greater competition are the primary cause behind this issue, there are a few more reasons one shouldn’t overlook.
To help you in this area, we are here with the four common reasons that explain why a customer abandons your business and the tips to fix this issue.
1. Offering Poor Customer Service
Numerous studies have proved that customers end their relationships with the firm because of poor customer service. As per the survey report by 24/7, around 47 percent of customers have switched companies just because of a single instance of poor service. So, it’s vital to pay attention to your customer service policies and its performance as early as possible.
Solution: Your customer service team is a business ambassador. Customers interact with them more than anyone else at your company. So, come up with thoughtful and positive customer service practices. It includes:
- Auditing the customer service policies that govern your team.
- Determining the points of friction by speaking to customer support managers and the representatives.
- Identifying the issues that prevent the reps from supporting the clients quickly and effectively.
- Training your team to treat the customer with respect and compassion.
- Giving sufficient resources to the reps that are essential to provide excellent customer experience.
2. Failing to Meet the Expectation
Customers do not stick around if you offer inferior quality products or services. With a marketplace full of alternatives, the disappointed customers invest their time and money on other companies. Also, they are more likely to share their dissatisfaction with friends and family. They may even post angry reviews on social media for other prospective customers to see. It will negatively impact your brand and thereby drop your sales rate.
Solution: No marketing tricks will make up for a poor product or bad service. So, make sure your product or service does exactly what it claims to. Do whatever it takes to deliver that is worth paying for. Be it, hiring a talented product designer who is capable of building quality materials or refurbishing the old product as a whole.
Most important, check the expectation of value you are creating for your customers. Misaligned expectations are detrimental to your business as your customers won’t be happy no matter how great your product or service is. So, understand your business’s brand promise clearly and then articulate it to delight your clients.
3. Providing Inconsistent Business
Nobody likes to do business with a firm that gets the wrong order half the time. Or provides inconsistent branding, such as using different logos on the website and social networks. Or the one that offers irregular quality products or services. Any and all of the above will drive customers away from your firm. You will lose their trust and also your business.
Solution: Humans rely on the thing that is consistent. It infuses trust in their brains. And when a prospect or a customer trust a business, they are more likely to buy from them. Also, trust can quickly boost the lifetime value of each customer. So, maintaining consistency is highly crucial for any organization.
The question is – how to provide a consistent business? The building blocks of any consistent brand include:
- A constant tone for the brand. Be it, any message, action, or behavior.
- Consistent imagery across website, logo, social networks, and print materials.
- Focus on the brand image that’s being developed.
- Positive customer experience via fixed channels.
4. Neglecting the Previous Mistakes
Most of the businesses entirely ignore the online feedback from customers. In this age of the internet, failing to respond to customer’s frustration on social media or make things right with the unhappy clients will ruin your business as a whole. Also, it will scare your prospective customers when they come across such user feedbacks. Your business can recover from such problems only if you’re ready to acknowledge the mistake, and learn from it.
Solution: Go through your previous customer complaints, study it carefully, and try to improve your product or service. Make some time to follow up with the dissatisfied clients. Take advantage of social media platforms to show that you are listening to the customers and are willing to make things right. Monitor every facet of your performance and draw actionable insight from it.
Studying these insights will prevent you from committing the same mistake again and also helps in improvising the product as per the customer’s desire.
5. It’s Time to Keep Your Customers Happy
Customers come to you with a lot of expectations and also hope to do repetitive business as it makes their lives easier. All they want from you is to meet their anticipation and make them feel valued, which means not committing any of the mistakes mentioned above. So, learn how to acquire and keep the customers with you by clearly analyzing their buying patterns and following the tips stated here.
Emily Johnson is a Marketing Consultant with 10+ years of experience in the execution of marketing strategies. She is interested in writing and helps SMBs and large firms with her rich experience. Currently, she heads the marketing department at Blue Mail Media Inc, a renowned B2B data solution company based out of Irving, Texas. Connect with her on Twitter.