Know-How Exchange : Customer Behavior

Sometimes lost or unsatisfied customers are the best kind to have. They have reasons for why they left or became disenchanted with your product or service.

By engaging them in coversation, you can understand why ... and that information can help you retain or win back other customers, too.

Asking this customer why he/she left and what you need to do to win him/her back is the best route. Ensuring that he/she knows that you care about his/her business and want to do what you need to will go along way.

Honest conversation is the key.

Best.
William
www.reachcc.com

William really gives an great summary and meshon gives the "novel" version of:

Give them a call and find out why they left. Then inform them of new practices and offer a "return discount" of some kind or free gift in thanks for returning.

Simply contacting them and finding out why can help prevent losing other customers for the same reasons...if if the one you seek does not come back.

I would offer a gift...not as an apology, but out of respect as a previous customer. That usually will get anyone's attention long enough for you to describe to them why they should return.

I found these stats:

1. Four percent of customers leave a business because they have moved away.
2. Five percent change their purchasing habits.
3. Nine percent decide that they like the competition better.
4. 14 percent leave because they become disenchanted with a company's overall service.
5. Fully 68 percent stop doing business with a company because they feel unappreciated.

I agree with Jett btw, the "Old Customer Discount" usually works very well, and again like Jett says sell it as very much a "in appreciation of past business ..." message.

Customers com and go, what you need to do is not give them a reason to leave in the first place, you definately need to start a retention programme to see if you have a particular problem, you never know, it might be something that can be easily fixed!

Good Luck :-)

andrews' stats are I think from Tom Peters. The point Peters was making was that most customers leave because a lack of communication made them feel 'unloved'.

But don't take that as a reason to stat bombarding them. Remember that we're in an age of 'never-satisfied' customer. Some of your business will go elsewhere just because they feel like a change - and there's nothing you could do to stop them.

strategicm's research list is good: use it. And use it to find out how to add value for your customer - that's probably *not* by giving them a discount on their return purchase - that kind of promotion's more likely to reward churn behaviour.

hth

Will Rowan