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Customer Behavior     
 
This question has been closed, and points have been awarded.
Key Principles In Retaining Customer Satisfaction
Posted By: GWilkerson* on 1/6/2005 5:19 PM (CST) 250 Points
Our company continues to experience higher than expected turnover with our customer base. Survey information does not indicate it is an issue of pricing, poor delivery or service. THe clients inform us that they 'need' to make a change or want to deal with suppliers that can cahnge with them.

Posted by: leskennedy Member Response
1/6/2005 5:27 PM (CST)
They are telling you alright...they want you to change with them, and it isn't your pricing, your delivery, or your service...maybe it's the offer. Usually when customers go, they leave because they have hit the wall - and it is usually due to sustained insensitivity to their needs. The first thing to do is not to ask them closed probes survey questions, "Is it this? Is it that?" but to ask them "What would interest you in staying???" For some it might be too late. For others, they will tell you it's about time.

If you are interested in talking more, email me. It would be my pleasure to chat about other experiences in retaining customers, and building/enhancing customer loyalty.

Les
 
Posted by: Praf* Accepted Answer
1/6/2005 5:29 PM (CST)
When customers want to move on without a good reason there is something they are not telling. If they just want to deal with suppliers who can change with them then the question arises: what is it that they are wanting to change. How do they know that your firm cannot keep up with their desired changes?

I would suggest that someone high up in your organization (maybe it is you) should start contacting the clients to find out what their true expectations are. Afer you know their expectations, evaluate where your firm is falling short. Without a first hand knowledge of what the customer wants, you are groping. Go find out and you will know why the turnover.

This is not scientific or mathematical. It is old fashioned business. Talk to your clients.

Good luck. I would love to hear what they tell you.

Praf
 
Posted by: Bill Moore* Member Response
1/6/2005 6:31 PM (CST)
Reluctant to change to meet your customers demands? This is a formula for disaster. I am not sure what you need more ... an immediate outside objective SWOT or ... a swift kick in your CEO's pants.

"“There is only one boss the customer and he can fire everybody in the company from the chairman of the board down simply by spending his money somewhere else.” Sam Walton - Founder of Wal-Mart.

What business are you in and what changes do your customers want.

Cheers Bill Moore
 
Posted by: W.M.M.A. Member Response
1/6/2005 7:04 PM (CST)
This is a great opportunity for you, and the KHE Profs.
Would you please provide us with as much information about your company, industry...etc...as you can?

How long has it been since you performed a SWOT analysis? Have you ever....?

How long have you been in business?
What changes (if any) have taken place from the time you noticed the flight until now?
What have you done to stop it? Have you spoken with any of your "old-friend-type" customers, that may be sticking w/you because of your friendship?

Who will be honest with you? Is it your company?

Thanks,
Randall
WMMA
 
Posted by: Deremiah *CPE Accepted Answer
1/6/2005 9:45 PM (CST)
GWilkerson,

CUSTOMERS LEAVE FOR A SPECIFIC REASON...
there is a reason why your customer is leaving. From my years of experience very rarely will a customer tell a company "WHY" they are leaving.

THERE IS A REASON WHY THEY ARE TELLING YOU...
what they are telling you. As a customer advocate I have found that the company providing the service or product has in some way offended the client.

LACK OF TRUST IS THE MAIN REASON WHY they lie to the companies that provide them with goods and services.

WHEN THEY WON'T TELL YOU THEY WILL TELL A STRANGER (ME)---WHY?
because they don't feel confident about the relationship they have with you. But they will tell me a perfect stranger because I come to them with no motives but with the intentions of resolving their problem. That is one of the keys of the Kingdom.

THE CUSTOMER IS KING...
Sam Walton knew it and it's obvious Bill Moore knows it. But what would be more better is if your client just got a hint of an idea that he believed for one moment that your organization was into that idea on a consistently, systematic basis...sort of like the way a kid at McDonald's is into making that big mac for the hungry customer whose looking for that same smell, taste and flavor of their big mac sandwich.

If you want to make a difference in the life of a customer give them what they came to get and give it to them good. There are 52 Great ways to provide a customer with unforgettable, inspirational service every time. If you want to know more I'm positive I can tell you. Is there anything else I can do for you?

Your Servant, Deremiah, *CPE (Customer Passion Evangelist)
 
Posted by: Papadoc (Steve)* Accepted Answer
1/8/2005 2:11 PM (CST)
I agree with the others but would go farther. It's not just enough to see that customers are leaving. You need to determine where they are going if possible. If they are all going to one competitor, perhaps that competitor is doing something incredible to snatch your clients.

It can come from one of two directions, either something really good, or I've also seen it where one company is scaring the crap out of their competitors' clients by spreading horrible falsehoods. In such a case, the customer might not want to get embroiled in a bitter legal battle between you two and not want to tell you what is really going on. If you are getting the exact same reason/excuse from several customers, perhaps your competition is feeding them that excuse for when they walk away. A reason of "lousy customer service" is an objective reasonable excuse that you would hear from multiple clients. Hearing, "we need a company that can change with us" is a subjective reason that normally develops over much time. If you are hearing that a lot, someone is feeding that to them.

One thing that I've learned about customers over the years. Either they won't complain at all or they will complain bitterly. Few give just some mild arbitrary reason and fewer give some subjective reasoning. Even those that are generally just not satisfied will try to come up with an objective reason why they are leaving now... something like pricing or wider selection... something you cannot argue with.

If there is no outside reason (ie that it is all your company's fault), you certainly have to get to the bottom of it because there is something really rotten somewhere. It could be your image, but is more likely an attitude that is being expressed throughout the company. In other words, if they get a lousy attitude from customer service and they perceive the same attitude throughout the company, then what's the point in complaining.

Lastly, I see companies all the time aspire to maintaing customer satisfaction. That's lousy. Customer sataisfaction means that you have barely met what they want you to do and most companies try to do that. There's no reason to stay with you. You should instead aspire to customer loyalty and that means going the extra steps. A satisfied customer will leave for a small discount if they are reasonably sure they can be satisfied elsewhere. A competitor won't stand a chance talking to your loyal customer however. If they say something miserable about you, the loyal customer will be on the phone telling you every word that was said.
 
Posted by: thinkmor Member Response
1/8/2005 7:58 PM (CST)
Hi Gwilkerson

What everyone has said is right. The puzzling thing is, why are your customers telling you things have to change or else because they normally don't? You've obviously asked customers, right?

Which type of customers are saying this, your most profitable ones? New or older customers? Have you introduced new deals for newer customers but not updated your current and loyal customers with the same?

Do you have a loyalty programme in place? referrals? CRM?

You obviously must of had a good relationship at one stage, when did this start changing and can you find out? You need to look at general changes (senior management, operations, accounts, your suppliers, customer service, your offerings etc) affecting your business at this stage and forward for clues.

Knowing what industry you are in will help.

Is your survey bias? who conducted it, when, how often, last?

Is it an IT, legal or legislative issue that will cost your company a major investment?

Do you have account handlers and have there been any recent lay offs or poaching of staff from competitors?

Answers to these and from fellow colleagues are needed to give any constructive feedback at this stage.

Looking forward to your reply.


Zahid Adil
 
Posted by: telemoxie Accepted Answer
2/2/2005 7:41 AM (CST)
Do you know what the industry averages are for turnover? You have said that your numbers are higher than you expected, but are they higher than industry averages? If so, you may have something fishy going on (a disgruntled former employee, a security leak of some sort). I agree with Deremiah that folks may tell more to someone outside your organization than to you - you might consider hiring an outside firm to look into this. I'm doing a customer survey project for a client now - contact me offline (check my profile) if you want to talk further.
 
Posted by: Val (Moderator)* Moderator Response
2/14/2005 12:32 AM (CST)
Hello all. I am closing this question, since its more than two weeks old. We do this to make sure members' contributions are rewarded in a timely manner and to improve the visibility of newer questions.

Thanks, so much, for participating!
Val (Moderator)
 


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