Why Customers Leave & How You Can Ensure They Stay

It's always frustrating when a client leaves. Most likely, a lot of time and energy was spent prospecting and then serving that individual or business. And now, you're left with nothing.

The main reason why people stop doing business with others has been identified. Studies show that 68% of customers leave because they feel they are being treated indifferently, not because of a "bad" experience, poor quality products, or better pricing somewhere else. That's why it's so important to be sure your clients feel valued and appreciated.

Actually, and to be accurate, it's only one of many reasons why you should always be gauging your performance when it comes to generating customer loyalty. For example: Studies have shown that loyal customers spend more money than new ones. Keeping people happy should keep them coming back. One auto service firm made three times as much profit from fourth-year customers as they made from first year customers in the year they were surveyed.

In order to achieve overall growth, you must retain your existing customers. And, as noted above, the best way to do this is to add value continuously and, thereby, ensure clients never feel they are being treated indifferently. An average company, losing 15-20% of their customers annually, would double its growth rate simply by cutting defections in half. So, why is it then, that so few businesses call customers who stop dealing with them to ask why? Your customers may not always be loyal, but they'll have their reasons. Identify them and use this information to improve your business by adding value for the both the joy and profit of it.

The following story about a graphic design firm we work with should help demonstrate the power of this approach very well. This firm loves providing its customers with little "extras" and "perks," they're always on time, and they supply a chocolate with every invoice. One of their customers left them for a "cheaper" designer, but soon came back because they were so much better off working with this firm. What's cheap is often expensive, and what's "expensive" is often good value. These designers are excellent about getting things done to specification, and they always deliver before they say they will. What better way is there to ensure customer loyalty? There is nothing more powerful than simply appreciating people and making them feel valued.

A business can really build trust and loyalty when it remains pleasant to deal with at all times, not just when somebody is buying something or paying a bill. You have to be there through thick and thin to attain the levels of trust and loyalty established by clients of ours using the Synergy Referral System [SRS]. It's simple: Keep serving your customers after "the sale," even when there's very little potential for repeat business. No matter what, you want them to be happy. Remember that every customer you serve is connected to other potential customers. You'll want to keep a fresh, positive impression of yourself in existing customers' minds if you hope to receive referrals from them. The better you serve your customers, the better they will serve you, by returning to deal with you time after time, and by bringing their friends, family, coworkers and neighbors with them.

Here's a useful exercise: Think of five simple, inexpensive things you could do for your clients to increase their satisfaction and show them how much you care. Then, implement one of your ideas - TODAY! Don't spend a ton of money, but make sure that any action undertaken is highly valuable to your clients. Whether it's sending out an "Important Dates to Remember" sheet, or providing a relevant and informative tip in this month's statement, your clients will appreciate any effort you make to better serve and care for them.

About the Author

Kevin Lawrence is a Business-Building Coach, Speaker & Author who works with Professional Financial Advisors (Investment/Insurance Advisors & Accountants) to assist them in building their businesses by increasing referrals and repeat business - the most efficient and profitable growth strategy in existence. He also helps people find balance, accomplish long-term goals, increase personal fulfillment or achieve any other result they desire in life.

You can listen to his educational AudioBook "Generate Endless Referrals & Discover More Repeat Business Than You Thought Possible" and subscribe to his 2 complimentary email newsletters "Successful Life" and "Endless Referrals"Contact Kevin Lawrence at 604 313-2229, or see details below or send an email to newsletters@kevin-lawrence.com


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