50 Reasons Why You Lose Customer

Customer retention matters more than chasing new ones. If your business leaks customers adding them won’t help in the long run. Finding out the reasons why they are leaving you and mitigating it is smart business.

I jotted down 50 ways you can lose them. Recognize any? Sure you could add 50 more.

Here’s my list enjoy!

1)     They got me and they have stopped looking at others.

2)     My deal is the best available.

3)     I know exactly what they want.

4)     Understanding stops at my door not at my customers.

5)     Of course they see me as critical.

6)     I don’t want to bother them so I leave them alone.

7)     I let them know I care –I send them some chocolates at Christmas.

8)     I guess my products and services are useful to them –they buy them right.

9)     Complaining customers just want too much and  I wish they would just go away.

10)  Another complaint just like the others oh well.

11)  So it was late – it got there.

12)  Jack the price they’ll pay.

13)  Customer visits are expensive and unnecessary.

14)  Lose 3 gain 3 all’s good.

15)  Competitors are a fact of life just ignore them and most go away.

16)  My revolving door sales force is just another inconvenience to me.

17)  My hard working employee Jack represents my company but the client is loyal to me right.

18)  I don’t need non-competes it makes employee think I don’t trust them.

19)  Let hire this guy he’s worked for 3 of our competitors over the last 3 years

20)  Put them on hold they won’t mind.

21)  Hey Jack at our large customer X apparently went somewhere else who knows.

22)  Jacks replacement –whoever he is will keep buying right.

23)  Anybody follow up with that pissed off customer yet.

24)  Price is only important if you’re not the best.

25)  Good service always results in price not being important.

26)  Technology is expensive and doesn’t help me.

27)  Customers usually won’t change if I don’t screw up.

28)  Tradition is important I’m in so I’m good.

29)  Value is in the eye of the beholder and my customer is color blind.

30)  Never trip a race horse -leave well enough alone.

31)  Disruptive what!

32)  Sears has been around for 50 + years.

33)  You dad used us so should you.

34)  Cadillac is a ultimate sign of success.

35)  What do the kids know anyways?

36)  Mom’s home baking why appeal to her

37)  Everyone wants us no point paying attention to our customer demographics

38)  Sales are down its seasonal I guess.

39)  Let’s jack up the price and offer a sales promotion.

40)  Value is in the eye of the beholder but I know what my customers want

41)  Let’s try this -maybe our customers might like it.

42)  Market research is for those who don’t know -we do.

43)  Sales are down let’s save some money cut marketing spending back.

44)  Some many large players – where they getting the business

45)  Amazon really?

46)  Online shopping why?

47)  “Why” Simon Sinek  -think they care?

48)  We don’t allow our employees to waste time looking at stuff online.

49)  Better to react than anticipate.

50)  Once you are on top the games over -you win.

Strategy –Finding Your Place

Without a winning strategy your journey has no destination and success would be an accident –they do happen but are unlikely.

At the foundation of strategy is finding a need for a good or service that is either solving a problem or creating a benefit that customers want and will pay enough for you to generate a profit.

Understanding a market by the fundaments is an important first step.

There are 4 questions:

  1. What is the Market?
  2. Why does the Market exist?
  3. Who are the Leaders?
  4. How will you carve out you niche?

What is the market answers the question of what is being provided to meet a need of consumers of such value that there is a demand. For instance farmers grow the food that people must have unless they grow it themselves or restaurants are a market that serves prepared food. Both meet a defined need.

Why the Market exists is about understanding why the need exists and how that need is addressed. Farmers are needed because in much of today’s society people don’t grow their own food. Restaurants exist to serve people that can’t or don’t want to buy food and prepare it for a variety of reason.

 

Who are the leaders is about understanding how the market is currently being serviced by the major players of each definitive market segment. This is understanding who, currently, are the major participants such as Kroger, WalMart or McDonalds. These players are market leaders in their respective category. There is great diversity on market segments, how providers service specific consumer groups, and who owns consumer mindshare within each category.

And finally how will you position your product or service to capture enough business to be successful by defining a unique offering and hopefully defendable position. By understanding the why the market exists the provider can position to meet the needs of specific consumer preferences. You don’t need to be the biggest to own a segment but, you have to be unique enough to carve out your dominance and meet your segments consumer’s preferences. For instance, Trader Joes does not compete with Kroger for selection or price but instead attracts and serves  a specific customer group.

While the questions are simple the answers can be very complex and challenging. Successfully understanding the questions is essential to the crafting of the winning strategy for your organization. Strategy is about making informed choices and commitments that must concisely define your organization’s vision before the execution can be undertaken to successful achieve the strategy. Yes there is order in the universe.

Strategy Plan Success – Event or Process

One of the most common factors that leads to disappointing results in the organizations Strategic Planning initiative is when they are executed as an “annual event” and not an ongoing business critical process that get updated and refined year over year. Following is a short list of concerns and recommendation for your consideration:

1.     The Strategic planning process is executed as more of a sprint than a marathon. Lots of up front energy and inspiring thought-provoking ideas of what could be followed by vaguely worded action items and off the organization goes running fast and hard. Soon the demands of the daily business take precedence and strategic plan initiatives fizzle out. As soon as the plan goes off track momentum is lost and initiatives die.

Recommendation

My approach is to define success and then backwards engineer the plan to build a road map.

Ambition becomes Accomplishment when adequate time and resources are invested along with disciplined planning and follow-up. Strategy without a defined execution plan is a no go. Spend the time to fully define who, what, how, where and when. Using Smart Goals is good way to ensure there is enough manageable detail to reasonablyexpect success. A common flaw is committing to do too much, too fast. By spreading the initiatives over a realist timeline you will only commit to what can be realistically accomplished.

2.      The Strategic Planning process focus is mostly on crafting the strategy, which is the inspiring and the creative side of the process. The Execution Plan, which is the way to turn the vision into reality, is where the advancement begins to become real. Organizations typically gather under prepared senior employees to an offsite location for a multi day meeting to do “Strategic Planning”. At every break they get on their cell phones back to the business and remain immersed in the details back at the office. The message here is the initiative is a disruption to their ongoing “real priority”.

Recommendation

Senior leadership has to inspire and provide real purpose to harness the energy and creativity of their organization leaders to commitment to the plan. This requires that the plan becomes a major part of their jobs and not an additional commitment on top over their existing demands. No one has an extra 20+ hours to assume more responsibility as they are already maxed out. These new commitments must be prioritized and replace something they are already doing. Hard choices must be made.

3.      The strategy must be real and urgent. Well meaning strategies that are more fluff and lack substance have low buy-in and little chance of success. They may be real goals / needs but lack the detail and defined roadmap to success needed.

Recommendation

I have seen great visions evaporate because they lacked both clarity and definition. Taking the time to ensure the vision becomes a realizable initiative is essential to gain buy-in and commitment.