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Why do customers leave? When we analyze it and a lot of surveys have been done in this space, we learn a few interesting statistics.
1% of customers die and there is not a lot we can do about it.
3% actually move away which is legitimate.
4% naturally migrate.
5% change suppliers based on the recommendation of a friend.
9% find that they can buy it cheaper elsewhere.
10% are just chronic complainers.
We can all relate to those, however here comes the crux of the problem,
68% of all customers leave because they feel that someone in the organization is indifferent to their needs. Now that is frightening statistic. What we are saying is that 68% of customers leave from things we can actually control. Many others we can’t control but I am happy to put my emphasis behind the 68% of the problem and fix it because it relates largely to attitude. If we can change our attitudes to the customer and get our staff to do the same then we can address 68% of the problem. This is where the energy needs to be put in.
Let’s look at that attitude in a bit more depth. First and foremost, we need to understand that the customer is king. If we understand this we are going to treat them somewhat differently which will raise the question! Is the customer always right? We so often hear people saying that the customer is always right.
Well are they always right! – actually not – sometimes they are not right but when they are not right this is where we need to educate them, treat them with respect and gently move them from the position where they are, to the position where we want them to be. If there is any arrogance in our manner of dealing with them, they are going to leave.
Our challenge is to ensure that we, as well as our employees, are treating every customer with the utmost respect. Skilfully handling them and teaching them what they need to know because they are not going to always be right. Gently move them to where you want them to be. We need to understand that while we are adopting an attitude of arrogance we will continue to lose 68% of our clients but if we can change that and change that attitude in our staff members we are going to keep our clients.
So in summary what are we saying is that the customer is king and like it or not they hold the purse string. So, arrogance goes out the window as you gently teach them the right way, bringing them to the same conclusion that you have and want them to believe. If you get this right they are going to stay with you. From the statistics we know that 68% will leave us if we don’t treat them in the way they deserve to be treated.