5 Reasons Why You’re Losing Customers, and How To Fix Them
Here’s an undeniable truth: customer retention is hard. Like any other relationship, it isn't straightforward to figure out exactly what someone expects from you. It takes a lot of hard work and dedication to keep your customers satisfied.
However, building a strong relationship with your customers is very rewarding. Your customers can be your biggest fans and strongest allies. Treating your customers right means they will be loyal to you. They will even cheer you on.
Without a doubt, your customers can make your brand successful. On the other hand, having unhappy customers can affect your business in many different ways.
Do you find yourself struggling with customer retention? In this article, we’ll take a look at the reasons why your customers might be leaving and as well as how to fix them.
Customer Retention Matters
The perception your customers have about your brand is essential. Customer retention is the set of actions your business uses to increase repeat customers. Also, it deals with increasing the profitability of each existing customer.
Clearly, it’s in your best interest to do everything in your power to keep the customers you worked so hard to get. You want to make sure they have an outstanding customer experience. You also want them to continue to value your brand.
Of course, it’s sometimes difficult to pinpoint what issues you might have that affect your customer retention rate.
With this in mind, we have put together a list of issues that could be causing you to lose customers. Since knowing the problem is not enough, we have included strategies to help you solve them.
1. Poor customer service experience
Firstly, this is one of the top reasons customers will turn away from your business. Unpleasant customer service experiences can definitely affect your customer retention.
Furthermore, clinical psychologist Shauna Geraghty says that over 90 percent of dissatisfied customers will leave instead of telling you how to improve.
If you're not paying attention to your customer there's a good chance that neglect is costing you customers. - Katie Lundin, Entrepreneur
How to fix it:
- Outline positive customer service practices.
- Give quick responses when a mistake has been made.
- Treat your customers with respect and empathy.
- Give your customer service team the resources they need to provide customers with excellent service.
- Lastly, evaluate what company policies have led to customer dissatisfaction.
2. Ineffective customer onboarding process
First of all, customer onboarding refers to all activities involved in introducing a new customer to your product or service. It involves listening to their questions and concerns and answering them. Additionally, it’s the process of effectively showing the customer everything you have to offer.
Interestingly, most companies choose to invest more in getting new customers instead of focusing on existing customers.
However, on average, only 18% of the companies focus more on customer retention, while 44% focus on customer acquisition. - Khalid Saleh
Indeed, the onboarding process can have a positive or negative impact on new customers. Not only can a poor onboarding process cause a bad impression but also scare away new customers.
How to fix it:
- Make it a personalized experience. Tailor solutions for your customers to create loyalty.
- Distribute information slowly and selectively.
- Be available to your customers if they get stuck or have trouble.
- Recognize milestones along the path to customer-defined success. It will help to encourage a continued relationship.
3. Not showing your value
First of all, price and value aren’t the same things. A customer pays money for something, but what they receive is value. Like sales expert, Liz Wendling points out: customers don't necessarily choose only “the lowest price or the cheapest in town.”
One company that has done a fantastic job at showing its value is Apple. In 2017, Apple captured 87 percent of smartphone industry profits but accounted for only 18 percent of total units sold. This indicates that customers are buying iPhones because they believe that Apple products deliver more value, despite the higher price.
Above all, showing your brand’s value will undoubtedly result in higher customer retention. Because let’s be honest, who wants to leave behind a good thing?
How to fix it:
- First of all, identify your unique value proposition.
- Publish the benefits of your product or service on all platforms.
- Feature your unique value proposition on the landing page for every offer.
- Educate all your employees so that they can speak fluently about the value included in your pricing.
4. Not connecting with your customers
Everyone likes to feel like they matter. An easy way to affect your customer retention is to make your customers feel unimportant. Creating an emotional connection between your brand and your customers is a mutually beneficial relationship.
Building relationships is essential to business success, create loyalty, and keep clients coming back. - Manasa Kumar, Freshworks
Last but not least, remember that actions matter. It’s not enough to tell your customers you care about them. In particular, you need to show them consistently through your actions.
How to fix it:
- To succeed at customer service, make every customer feel special.
- Share valuable information around products without hard-selling.
- Connect with customers through customized interactions and active responses.
- Using client management software can be helpful to stay connected to customers.
- Create a rewards program for loyal customers. Let them know you appreciate them.
5. Your business is inconsistent
Finally, being inconsistent will clearly lead to a lower customer retention rate. Being consistent creates trust between you and your customers. They want to know that your business is reliable. Inconsistent branding plus inconsistent quality or service have the potential to drive customers away.
Also, the last thing you want is your customers to feel confused. Providing consistently good service will take away any doubts about how good your brand is.
How to fix it:
- Educate all of your employees about what excellent customer service should consist of and hold them accountable.
- Create a branding guide to establish uniform branding guidelines.
- Consistently deliver a quality experience customers can rely on.
- Last but not least, always provide a positive customer experience.
Customers Are Your Rock
Above all, if you take anything away from this article, let it be this: your existing customers are what keep your business alive. Of course, getting new customers will always be important. However, remember that your existing customers will be your biggest supporters if you treat them right. So take the time to listen to their needs, and show them some love and appreciation!
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