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Three Mistakes That Might Be Costing You Customers

Today’s Businesses Have to Work Extra Hard to Keep Customers Loyal

Angry customerWith more competition than ever before for most small businesses, today is certainly a shopper’s market. If customers find just one thing about your company that they do not like, then they can walk down the street or jump online to find another provider.

What can make matters even worse is that your company might be partly responsible for your customers fleeing in the first place, especially if it is making one or more of the three following mistakes.

#1 – Seeking New Customers at the Expense of Current Ones

Every business needs a steady supply of new customers if it wants to grow, but some companies may become so consumed with attracting new customers that they forget about their current ones. Think about it this way – have you ever tried to get a great discount on a new cell phone only to find out that the discounts are only available for “new” customers?

For some reason, a lot of companies seem not to care about their long-term loyal customers and as a result, this is one of the most common reasons for poor customer retention. Instead, show your existing customers that you appreciate their business from time to time (free shipping, loyalty programs, etc.), and your business might reap the benefits. Recent data from the Gartner Group indicates that just a 5% increase in a business’s customer retention rate can increase profits by as much as 125%.

#2 – Failing to Deliver as Promised

False advertising is something that no business wants to be associated with. Therefore, it is very important that your product or service delivers as promised or better. Keep your promises realistic so your customers will know exactly what to expect and that way you can dramatically reduce complaints, returns, and lost customers.

#3 – Lack of Communication

Customers want to be able to contact your business any time they have a problem with your product or service. While it is acceptable to offer a customer service phone line that is open during business hours, customers need to be able to reach the company when they call. If the customer has to sit through long hold times or deal with agents who seem unwilling to help, then they will hang up the phone and take their business elsewhere.

Ultimately, you want your business to be easily reachable via an array of channels. Give your customers a variety of ways to contact you (phone, email, postal mail, social media, etc.), and try your best to turn every negative experience into a positive result.

Dave Donovan


Dave Donovan has written extensively for the web with a primary focus on articles targeting finance and business.