Why customers quit a company.
This article is showing some of the most typical reasons, why a customer quit a company or a supplier.
1) The most important reason; about 70% of your customers go elsewhere shopping, because the people who serve them are indifferent to their needs – they just don’t care or can’t handle your business or your customers. This shows the importance of service levels and continuous education and the need of understanding general business terms.
2) Second reason; about 15% of your customers are dissatisfied with your service or with your product or product lines. This makes the importance of every customer even more unique and gives you a possibility to make a solution to every customer.
3) Third reason; about 8% are chronic complainers. Don’t waste time and effort on them. Send them to a competitive business.
4) Fourth reason; many customers finds a cheaper alternative product. Let the customer choose his/her own way of shopping. Acknowledge your loss, but fight back with even more service.
5) Fifth reason; some customers move to another supplier by the worth of mouth or by recommendation. Let the customer try another supplier, if he likes you and your services, he will turn back. Remember, price and worth of mouth is not always the strongest weapon in business. The one and one contact is becoming even more important in business today.
More reasons; some customers are natural floaters with no specific requirements to products or service, maybe they prefer convenience or locally shopping instead. Also, some customers move away or stop using specific products due to green waves and also a very small part of the customers passes away too.