A business that is losing customers on a consistent basis is in trouble over the long haul. Customers are the lifeline of any organization. However, today’s business environment is characterized by high customer turnover due to stiff competition. If you’re losing customers and can’t figure out why, it’s time to take a good hard look at how you’re doing business.
1. Changing Too Many Players
Customers do not buy from companies but from people. Relationships are the lifeblood of a business, irrespective of its size. Therefore, to retain long-term customers, a company should not rotate salespeople, key contacts, or customer service representatives unless it has to. A business should foster any relationships forged by employees since they are rarely interchangeable.
2. Treating Existing and New Customers Differently
Offering incentives and discounts to only new customers may cause resentment among the existing ones. A business should think carefully about the carrots its offers new customers and ensure that it rewards existing ones equally – if not more. Although new clients have an immediate top-line impact, total sales to existing ones typically result in a greater impact on the business’ bottom line. And it’s always more cost effective to keep a customer than it is to earn a new one.
3. Focusing on Price Rather Than Value
Being a low-cost provider offers a competitive edge at first, but this strategy is difficult to sustain over the long haul. Instead, a business’ goal should be providing the best …