Losing customers may be more costly than you think…
Have you ever calculated the cost to your business of losing a regular customer?
Even if you’ve done the sums, you may have underestimated!
It all depends on why they’ve left. If they’ve gone elsewhere then it’s likely they were no longer satisfied with your service – and you may not even know why.
Maybe they feel that you didn’t look after their needs? Whatever the reason, if they’re unhappy then they’ll tell others.
As we all know, bad word-of-mouth can have a far more powerful impact on your business than a positive comment.
The direct cost of losing a customer is easy to calculate, using retail as an example: if the customer was spending £100 per week with you and would likely stay for 5 years, then that’s over £30k in revenue lost.
The cost of bad word-of-mouth is harder to calculate but could be far higher.
If that unhappy person tells 5 other people who also spend £100 per week, then if those 5 also decide not to buy from you the cost quickly rises into the £100k’s.
So what do you do about it? Well, I believe you can’t afford to do anything but treat each of your customers the very best way possible.
Give them all the love, care, attention and service you can.
Make it impossible for them to consider doing business with anyone else, regardless of price, location, convenience, or any other reason! And remember…
It costs far more to acquire new customers than it does to keep the current ones happy.