The Case For Customer Retention

In an ideal world, the tremendous amount of 3me, money, and energy you spend in building a great product or service; educa3ng prospects about it; a;rac3ng them to your company; and finally turning them into paying customers would be rewarded by a long, profitable rela3onship between you and the newly-acquired customer(s). But this is not that world, is it? You know that customer rela3onships are far from ideal. However, did you know... ? Losing customers is easier than you think 96 percent of customers have no qualms in walking out the proverbial door if they are unhappy with your either your products or services and/or your manner of delivery. Think that's rough? Wait un3l you learn how easy it is for businesses to lose customers in today's mega-compe33ve age. Simple negligence or misconduct on social media – such as making rookie mistakes on the micro-blogging plaOorm Twi;er (like over-twee3ng), are enough to push customers away. There are a host of other factors that can do the same. Overall, you lose customers because of one or more of three primary reasons. Researchers of a Washington DC used a customer survey to find out the main reasons customers stop doing business with a company or service provider: • Poor customer service is typically the reason for 68 percent of the deferring customers, who cite poor aWtude of the customer service representa3ves or complete indifference on their part as the trigger to leave. Consequently, poor customer service costs an es3mated $83 billion in losses to US companies on an annual basis. • For 14 percent, dissa3sfac3on with the quality of product or service delivered is the key trigger to leave the current company and take their business elsewhere. • Another 14 percent get lured in by compe33on with the promise of a be;er or more valuable deal.