If you’re wondering about why customers leave or don’t return, here’s what studies have shown.
One percent die.
There’s not a lot we can do about that. Its the old ‘death and taxes’ thing. Fairly unavoidable.
Three percent move away.
There’s not a lot we can do about that either. People move, now more frequently than ever. Often out of the reach of our businesses.
Five percent follow a referral.
These people get a referral or recommendation from a friend or family and decide to make a switch away from your business. Referrals are a very strong motivating factor. They’re the . . . → Read More: Why customers leave
Most businesses understand that it is a lot less expensive to keep a customer than attracting a new customer.
However, some of these same businesses don’t know, or even understand the concept of long-term customer value. They will spend incredible amounts of money on advertising and marketing to potential customers, while neglecting their existing customers base.
We’re working in a different economic climate now, where attracting new customers is increasingly difficult. That means that replacing an existing customer will be very expensive in both money and effort.
Research has found that 60% to 80% of a business’s lost customers were either ‘satisfied’ or ‘very . . . → Read More: Satisfied or Loyal Customers
