Don’t Lose the Customers You Already Have

A department store owner in London named Gordon Selfridge originated the phrase, “The customer is always right.” Those words have been used in business for many years, but do companies and employees really follow their meaning?

Many companies make lofty promises, obligations, and commitments to win new business. Needless to say, there is no shortage of pledges about quality and service, much of it designed to lure customers through the door. But are those promises honored, or does a company lose focus once a customer becomes established?

There are countless stories from individuals whose experiences reveal that some companies grow lax in standing behind the promises they made before securing the business. After the deal is done, customer attention fades. As this careless practice continues, customers eventually walk out the door.

With today’s rising operating costs, customers are re-examining their relationships with suppliers. They want more attention, responsiveness, and value for their money. If they don’t receive it, they will leave quickly and find it elsewhere.

Retaining existing customers should be a top priority for any company. Businesses should make it easier for loyal customers to continue working with them rather than giving them reasons to explore competitors.

Studies show that 68 percent of dissatisfied customers switch suppliers because they feel mistreated. Does it make sense to lose customers when they are so difficult—and expensive—to acquire in the first place?

Common Mistakes Suppliers Make

Customers judge what they see — If an office, distribution center, or packing house is disorderly and messy, customers may assume their product will be handled the same way.

Overcharging — Excessive pricing puts retailers at a competitive disadvantage, resulting in lost business for both parties.

Poor quality — Substandard products fail to generate repeat business.

Lack of knowledge — Salespeople who don’t understand their products undermine trust with customers.

Boorish sales behavior — Pushy sales tactics or offensive language can quickly drive customers away. Loud or unprofessional behavior alienates and insults potential buyers.

“We can’t” attitude — Relying on the word “can’t” instead of seeking solutions sends the message that a supplier is unwilling to go the extra mile.

Out-of-stocks — Failing to supply ordered products signals unreliability. Retailers can’t sell from empty shelves.

Driving customers away is easier than many suppliers realize, as these examples show. Customer retention is essential in today’s market, and reliability—of both product and service—is the foundation of lasting relationships.

The top 20 percent of customers typically generate 80 percent of a company’s sales. Treat them with genuine care and attention.