As salespeople, our ultimate goal is to not just acquire new customers, but to retain our existing ones. But despite our best efforts, there will always be a percentage of customers who leave. And while it may seem like a minor setback, the cost of customer churn can have a huge impact on a business’s bottom line. Keep in mind that every deal you land has the potential to be taken by a competitor. In a free market, your clients and customers should be treated consistently regardless of how long they have been with you – you never know when a competitor may come by to meet the client’s expectations better than you are. In this sales training article, we explore why customers leave and the surprisingly high costs associated with customer churn.
Poor customer service: One of the most common reasons customers leave is due to poor customer service. If your customers are not treated well or feel neglected, it can lead to frustration and dissatisfaction, causing them to look for other options and eventually leave. The cost of acquiring new customers is much higher than retaining existing ones, so retaining customers with excellent service is essential for a healthy bottom line.
Lack of value: Customers want to feel like they are getting their money’s worth. If they feel like they are not receiving adequate value for the price they are paying, they may begin to look for a better deal elsewhere. Make sure that your pricing is reasonable and fair for the value you provide. Provide additional benefits or rewards to loyal customers to show that you value them and appreciate their business.
Over-promising and under-delivering: Every conversation you have with a sales prospect has the potential to create an expectation of your products and services. You are an extension of the business, much like a hand is to an arm, which means you are ultimately responsible for the potential customer’s understanding and expectations of the business’s offerings. If you promise a prospect the sky but the result barely leaves the ground, then it’s time to review your communication and align it with your company’s offering. There is always the urge to provide solutions to a prospects’ challenges, but make sure your expression of that matches the business’ offerings.
Lack of communication: Communication is key in any relationship, and this is especially true in the customer-business relationship. If your customers feel like they are being left in the dark, they may begin to feel neglected or ignored. Make sure you are keeping your customers informed about important updates, new offerings, and promotions. This can be achieved through regular email newsletters, social media updates, or even a simple phone call. An essential part of effective client communication is being proactive, so make sure you’re communicating before the problems arise in the first place.
Poor product/service quality: Customers have options and will leave if they are not receiving a quality product or service. There will always be a competitor who can provide them with what they are looking for. Focus on improving the quality of your offerings and continuously seek feedback from your customers.
The cost of customer churn can be enormous, both financially and for your business’s reputation. By understanding why customers leave and taking steps to address those issues, you can reduce the chances of losing valuable customers. Ultimately, the key to customer retention is providing excellent service, staying engaged, and continually improving the quality of your products and services.
Looking to retain more clients through strategic sales training? Check out our sales training programmes or get in touch with our team today!
