Your marketing worked! And you thought they were a good fit for what you do, the value was right and they bought! High fives all around…..
Now that they have made one purchase, based on our ladder of loyalty, they are a shopper. They need to make that second purchase to actually become a customer.
So how do you nurture your clients recognizing that your competition is still in the hunt for their business? First, lets take a look at why a client would stop working with you. Based on the most recent data I’ve seen – clients leave for the following reasons:
- Death – not much to be done here (1%)
- Move – they have left your geographic reach (3%)
- Friend – a buddy of theirs jumped into the same business and they feel guilty not giving them a shot (5%)
- Competitor – let’s face it, you were out sold and out valued (9%)
- Product – a new product or technology is on the market and you are falling behind (14%)
- Add all of these together and they total 32%
- Perceived indifference – a whopping 68%. Are you kidding me?
What does perceived indifference mean to you? In fact, grab a sheet of paper and a pen and I say “perceived indifference” jot down the first 10 things that come to mind. Some examples I’ve heard in the past are “taking someone for granted”, “not worrying about whether they stay or go”, or “focusing on new prospects instead”.
Next week we’ll go into further detail on the impact this perceived indifference can have on your business. As a home work assignment, take a look at the last five companies that stopped working with you and identify why they left based on the list above.
Whether you are a business owner in North Carolina, Connecticut or Seattle, client retention is a major profit driver in your business. If you need help with fresh ideas, contact your local ActionCOACH business coach.
Enjoy your week.