Evan Polin, a member of The Training Resource Group (TRG) and one of our networking partners whom I have been fortunate to meet through our membership with Business Clubs America, has some valuable advice on understanding how not to lose business. Please see below! TRG is holding seminars at American Executive Centers on networking on January 11, January 25, February 1, and February 8. E-mail helene@trainingresourcegroup.com for more information and to register!
Whenever you lose an existing client, how much time do you spend reviewing your work and relationship to determine the possible reasons? Examining the relationship is a crucial step in improving your business-development process - do not ignore it and move straight to finding another client to replace the business.
Here are some statistics to keep in mind regarding the common reasons that a company loses a customer:
- 1% Die
- 3% Move Away
- 5% Form New Friendships
- 9% Leave you for Competitive Reasons
- 14% Leave because of Product Dissatisfaction
- 68% Leave because of YOUR Attitude of Indifference
In a tough economic climate in which everyone seems to be competing on price, many business owners and executives worry that clients will leave as soon as they can find a lower price somewhere else. But as the data reveals, the quality of the product or service and relationship between the two parties can matter more than the dollars. A business that can demonstrate unique and/or superior value can still charge a premium - especially when it comes to the personal-relationship aspect.
Nearly 70 percent of customers leave as a result of their dissatisfaction with the business' attitude. Surprising? In a prior post entitled "5 Ways to Retain Your Existing Clients," I discussed various ways to improve the business-client relationship through practices including the stroking of egos and the building of internal advocates.
Human beings are social animals who need to feel personal connections - and this is true even in business. If a customer views his supplier as a personal friend rather than just a machine who brings and delivers the product, he will be less likely to look elsewhere in the event of a price increase or other issue. There are untold numbers of examples that I could cite.
The point is that when clients leave, it is often a result of something that you (or your company) did wrongly or poorly in regards to your attitude. Perhaps you did not address a problem quickly enough. Maybe you always spoke with the customer on the phone in a distracted manner and monotone voice. Practices like this - which are rarely noticed by the person doing them - may be seen by customers and interpreted as indifference.
As a result, the clients feel that they (personally) and their business (professionally) are not appreciated at all. And so, they will be more likely to move on as time moves on - and the feeling grows.
Don't forget to e-mail helene@trainingresourcegroup.com for more information and to register for Evan's networking seminar!