October 13, 2009

Discover why more than 2/3 of customers leave a business

According to Betsy Sanders, author of the customer service book “Fabled Service,” 68% of customers who leave a business leave due to Perceived Indifference.

In other words, the products, price, quality, service, and the customer’s own personal circumstances have not changed… The customer simply feels that the business doesn’t appreciate their patronage anymore.

In most businesses, the customer’s perception could not be further from the truth; with all of the uncertainty of running a business, the existing, loyal customer base is a business owner’s saving grace.

An easy way to reduce the number of customers that distance themselves from your business, therefore, is just to let them know you haven’t forgotten about them.

Five simple ideas to get you started:

  1. Institute a loyalty program (eg. a “frequent sipper card” for a coffee shop)
  2. Create an e-mail newsletter
  3. Send “reminder” cards when the purchase cycle is predictable (eg. for a mechanic)
  4. Institute problem to reactivate lapsed customers (could be as simple as e-mailing people you haven’t seen for a month and sending them a special offer)
  5. Resist “New Customers Only” offers!

Remember, attracting new customers is the hardest business to get, and will cost the most to get.

If you have any other ways to show your existing customers you appreciate them, please comment on this blog post so others can benefit.

As always, your feedback, questions, and topic requests are appreciated!

James Deck
1300 Web Pro
Web: www.1300webpro.com.au
Twitter: @1300WebPro


  1. Great Blog James.

    I totally agree.

    So many businesses focus all their resources seeking new clients while neglecting the ones they already have.

  2. Great blog James!

    We have found that generation of repeat business can double your yearly profits when done correctly. The costs associated to this are far lower than any other business generation (as you have said, a phone call is generally the largest of the costs to obtain repeat business, with many other ways being free - emails, newsletters, cards etc).

    You need to always keep your current customers in touch and ensure they feel a caring from your business (this is their perceived value for purchasing your products or services).

  3. Great point Chris! Re-activating existing clients is a great way to drum up a lot of business on a little budget.


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