Why Do Customers Leave?

As business owners, we always want to have repeat business. Repeat business is not only profitable but the effort in selling is considerably reduced. It would be easier to sell new products and services to a client who has already done business with you in the past. The bottom line here is that the repeat client will be your main source of income rather than having new clients.


But why do they leave? Why do they seek out other entrepreneurs who sell the same products as you do? That is what we will be trying to answer here.


Reasons beyond your control

There are a few minor reasons when clients do not come back to your business. These reasons are the ones that you do not have control of and you cannot do anything about them.


The first reason is death which is sad but the percentage is very minute. Only about 1% of clients die during the course of normal business. The second reason is when people move to another area. About 3% of local clients are lost because they have decided to move away from the vicinity.


Reasons Related to Sales and Products

You will also lose clients due to competition. As with any business, competition is always stiff especially with products that are considered the “in” thing. Other entrepreneurs will see the opportunity to capitalise on your success and try to introduce products that are similar to yours.


The first reason related to sales is that the competition has gotten to the client. Someone outside your team has sold a similar product to your client. It might have something to do with the sales technique they employed; they might have been more convincing or perhaps gave incentives to switch. 9% of clients are lost because they have purchased from a competitor.


The second reason is product and price. Your client might have found a similar product of better quality or for a better price. Either way, the client found that by purchasing from a competitor, they got more value for their money. If you find out that you are losing clients due to your products or your prices, you can remedy this by offering better products or a pricing scheme. The percentage of clients lost due to products and price is around 14%.


The Biggest Reasons why clients are lost


Surprisingly, the biggest reason why clients are lost is not because of products or competition but because of what is called Perceived Indifference. It is the biggest reason why clients leave, with a rate of 68%.


Perceived indifference is when a client does not feel that you care about them or that they matter to you. If you walk into a restaurant where the waiters ignore you or do not take your order immediately, you feel what is called perceived indifference. A client who walks into a restaurant will expect to be entertained promptly and also be the priority. Simply delivering your product or service to your client does not cut it. There are a lot of competitors who would be more than willing to go the extra mile to get clients. Once they leave, it will be very hard for you to win them back again.


A business owner can overcome perceived indifference by keeping clients happy and satisfied with your products and services. While they are your clients, go have to go the extra mile to make them feel that they are valued. Remember that for a sale to be closed, you first need to create a relationship with your client. And once a sale is made, you have to maintain that relationship with the client too. After sales service is often the one of the reasons for clients to look elsewhere.


There are a few simple things you can do to make your clients feel valued:


  • Deliver products on time every time.

  • Follow up to check for customer satisfaction

  • Thank you cards or notes when closing a sale.

  • Update them with new products or discounts and other programs

  • Value added services or freebies


Simply providing products is no longer what clients seek. It is value for money and their worth to your business that is more important to them. So your focus should not only be on delivering quality products but also on keeping your clients satisfied with your business.

If you are having trouble keeping clients or looking to grow your client base, Coach Brad Flynn can help you with what you need. He is based in Brisbane and has decades of experience in helping entrepreneurs grow and keep their client base.


Have a good day!

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