So, you did it! The lead generation, the follow up with all those carefully crafted conversion strategies, and they got over the line. You got a customer, or ideally, a huge number of customers. You were able to convince someone that your service or product was valuable, answered their needs, solved their problem and crucially that you were trustworthy enough to do business with. Now what, let's do it again, more new customers, same process all over again.
However, whilst you are enthusiastically fishing in the leads pool what are your current customers doing, are they feeling neglected, is there a competitor circling?
The graph shows the results from a survey completed by McGraw Hill on the reasons that customers had for ceasing to do business with a company.
4% die or move away, very little you can do to prevent those losses. 5% move on the recommendation of a friend or relative. This is a powerful motivation, if someone you know and respect or are related to recommends a business then you will feel almost duty bound to try it out. However, we should be using this to our advantage. Are there enough referrals coming in? Do you have a referral strategy that encourages and even rewards customers for their recommendation to friends and colleagues? Rather than losing customers you should be taking them from your competitors.
9% are tempted away by a competitor. Maybe they have a better, cheaper offer? Maybe their communication of the value they provide is stronger? Their marketing more functional and effective? So, again, why aren't we taking customers from our competitors? Time to review the marketing strategy and tactics.
In both these groups it is well worth maintaining contact and utilising a customer reactivation strategy. They have already bought from you once and seen you as trustworthy and, after trying a competitor, you can communicate your value and regain some if not all of them.
15% dissatisfied with the service or product! In this case it is important to understand why they were dissatisfied and how you could improve your service or product. It may not save this one but it could save future customers from going the same route. Also, after a time, you can try a reactivation policy with the emphasis on how the product or service has changed.
The biggest proportion in this survey were those that noted, lack of contact as the reason. In fact the survey noted lack of contact or No particular reason. That's 2/3 of the losses that could have been prevented by regular emails, offers or other contact.
This is a survey from one company and there is no reason to believe that it would be radically different in others but the key point is we should know these numbers for our own business. With this information you are then able to focus on the area causing the biggest loss. You can design the strategies that reacitvate these customers based on what their reason for leaving was and build systems to prevent the issues from arising in the first place.
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