22/06/2009

Why do Customers leave you … ?

How many times have you played the “Whatever Happened to …” game.  Wondering why a certain customer who used to buy what you have to sell doesn’t buy anymore?

 

Is there a reason?  Or group of reasons?  Has anyone ever done a study on this?

 

Though the years, I’ve accumulated a group of reports from different sources ranging from different sources ranging from U.S News & World Report, the Harvard Business Review, and several trade magazines to half a dozen motivational and “secrets of successful selling” articles.  But (and here’s the amazing fact) they all have the same statistics.

 

Now whether this is one person copying what someone else has written or said or simply perpetuating a myth I’m not sure.

 

What we are sure of is that the statistics make sense because they worked in our business (and seeing them gave us a reason to develop a new customer-oriented marketing plan) and in other businesses as well.

 

Here are the numbers as repeated in books, columns, and from the mouths of let-me-tell-you-how-to-succeed speakers:

 

Why Customers Leave …

·         14% leave because their complaints were not solved

·         9% leave because of the competition

·         9% leave because they moved someplace else

·         68% leave for … no special reason or what we call perceived indifference …

 

In other words:  Seven out of ten customers who used to buy from you left for … no special reason … I don’t believe that …  I think there was a reason …  Or a series of reasons:

 

       I think they left because you never told them you cared…

       I think they left because you never told them they were important

       I think they left because you never said “Thank you” and “Please come back and shop with us again …”

 

Many times I have found that owners and operators are so busy minding the business they forget to mind the Customers, and in the immortal words of super salesman “Red” Motley, “Nothing happens until a sale is made”…

 

How many times have you walked in to the store and found no one to give you any help or assistance?

 

I heard the story of writer Ken Erdman tells of the time he and his wife were shopping in a Philadelphia department store …  His wife found an item and brought it to the counter – but no one was there.  And no one to be seen …  And so Ken simply stood in the middle of the room and yelled at the top of his voice “Help! Help!” Suddenly security people appeared from everywhere demanding to know the problem…

  

“There’s no problem,” said Ken.  “We just want someone to help us.” 

 

The Japanese handle that by having People stationed on either side of the door when you walk into their shops …  They bow and say O-kyaka-san, which roughly translated means, “You are a visitor to my home.”

 

Do I feel that way when I walk into your business?  Is one cashier talking to another …  Or a friend on the phone …  Or busy fixing stock … Or … are they so busy minding the business, they forgot to mind the customer …

 

A retailer friend proudly showed us his new computers …  He could tell us how many pairs of pink socks were sold on any given day at any given hour …   His carry-home briefcase was filled with voluminous printout sheets that he read with the same interest and the newest novel by John Grisham …  He would pencil in notes on the margin, make references for future buying patterns, and the store as an office away from his office at home …

 

His once-successful business went bankrupt …

 

He was so busy minding the business, he forgot to mind the Customer …

 

Now nothing is wrong with cleaning stock, taking inventory, and buying computers …  It is to be practiced devoutly, to be admired, and encouraged.  But not at the expense of the Customer …  Businesses often tend to build fences to hide behind …

 

We did a series of seminars for banks at annual state meetings across the country.  We asked each of them, “How many made more than ten officer calls last month?” (“Officer calls” mean  the bank officers had to leave the bank and personally make a call on a Customer and potential Customers throughout the community.)  Few raised their hand.  Yes, it was written down for them to do …  Yes, they knew it was important …  But there were papers to read and sign and employees to watch and criticize and . . . well, there just wasn’t enough time …

 

We remind them to “take the time,” or the competing bank would be out asking a simple question to the Customer: “When was the last time you saw your banker?”

 

They were so busy minding the business, they forgot to mind the Customer …

 

And what of the phone call to a business questioning a bill … And the answer, “Sorry, our computer handles that.”

 

Really?  What’s his (or her) name?  Can I talk to him?  If the computer is going to take care of the business, does that mean it takes care of the customer as well?  Shall we set up your business like a vending machine cafeteria?  Customers come in, look for the selection they want, dial their credit card number alongside  the tiny window opening, and click . . . it opens for them to take what they want …

 

And those of you that rave about the tremendous success of home shopping on TV, consider this fact:  The total sales (while impressive) make up less than 3 percent of the total retail in the United States …

 

·         People are lonely … They want someone to talk to …

·         People are critical …  They want to kick the tires and touch the fabric …

·         People are social … They want to “get out of the house” and go somewhere . . . the local mall or business is fine …

 

And so the next time the desk piles up with figures to beat and merchandise to buy and salespeople to hire, make sure it does not take up the greater part of your day …  That belongs to the Customer outside your door roaming around looking for help in buying an item …

 

Take care of your Customer.  If you do, you will have a business to take care of …

***article from bradsugars.com***

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