The Costs Of Losing A Customer

The Costs Of Losing A Customer

20 Jan The Costs Of Losing A Customer

Have you heard the expression “The customer is always right?” There will be times when a customer may get angry at you, complain, or make demands that you believe are unreasonable.

However, there are four main costs of losing a customer:

1. Loss of current dollars: The business you currently receive from the customer is terminated immediately.

2. Loss of jobs: If the customer provided a significant portion of revenue for your firm, you may have to downsize or even close the company; your employees will lose their jobs.

3. Loss of reputation: Remember Joe Girard’s Law of 250. Do you =really want to send a person away unhappy? One unhappy customer can keep many people away from your business.

4. Loss of future business: Once the customer is gone, so is the hope of any future purchases by that customer.

Use your self-control to stay polite, even when a customer is getting angry. Do your best to find a solution that will send him or her away satisfied and diffuse any lingering ill will. Your effort will protect your business and may even earn you a customer for life. Often, if you simply ask, “What will it take to make you a satisfied customer?” you will find that the customer will pause and suggest a reasonable solution to the situation.

Customer Complaints Are Valuable

You may not enjoy hearing a customer complain about your product or service, but a complaint is full of valuable information that probably no one else will tell you, and you do not have to pay for it! Listen closely to learn what your customers need and want:

  • Always acknowledge complaints and criticism and deal with them. Never pretend that you did not hear a negative comment. If the customer perceives a problem, it is a problem.
  • Do not overreact to negative comments and, above all, do not take them personally.
  • Always tell the truth about any negative aspect of your product or service. When you admit a negative, you gain the customer’s trust. However, this is different from complaining about your own product, the vendor, or your customers. You need not emphasize any weaknesses, but should acknowledge them when asked and offset them with benefits.

Remember, a successful business is built on repeat customers. When you listen to a customer, you are building a relationship. You are encouraging loyalty to your business. An angry customer can make you feel angry, too. It is crucial that you and your team members stay calm when dealing with a customer who is upset. Ask the customer to explain the situation, and do not interrupt. This will provide time for him or her to vent and then calm down. If you show that you are willing to listen, you will probably defuse much of the irritation.

If the customer is using profanity, however, say something like “I understand your frustration, but I’m not comfortable with the way you are expressing it. Let’s find a solution for you.” The LSBF is the one-stop solution to learn more about marketing and sales.

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