AED Foundation - News Articles
Workforce Development:
Do Your Customers Feel You Are 'Indifferent?'
By Steve Johnson
A question was asked in a research study several years ago, "Why do customers leave your company?" Everyone has their own anecdotal evidence amassed through years of being in the business. However, please read on – you may be surprised at the results.
To start, here's a list of some customer issues and dynamics that most of us are familiar with:
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It costs much more to get a new customer than to retain one.
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When customers leave, they don't necessarily tell you they're leaving – or why.
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Bad word of mouth customer references to your company are costly.
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One really bad customer incident can cost a company that customer.
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Unhappy customers can have extremely long memories; forgiveness can be elusive.
Now, if you look on the Internet, you'll find some broad themes that will ring true to you as to why customers leave for a competitor. This list, of course, is not exhaustive, and I'm sure you could fill in quite a few more.
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Customers feel they were treated badly or unfairly.
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Customers don't feel that the vendor's employees care.
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Bad service with bad excuses – repeatedly
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It's hard to do business with a company.
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Competitor made them an offer they could not refuse.
To move a little more to a fact-based approach, several years ago a study was done by the Empire Research Team working with Growth Strategies.us. It was titled "The 5 Most Dangerous Trends Facing Small Businesses in 2009." It is also referenced in a book titled "The Ultimate Marketing Plan" by Dan S. Kennedy. I believe the results apply equally to companies of all sizes. This study is interesting because it highlights one particular issue that covers a lot of ground: "Perceived Indifference." See the results below.
The question posed is simple, "Why do customers leave your company?
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1% die (a really "hard to resolve" customer issue)
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3% move away
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5% follow a friend's advice
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9% leave because of a better product/service or price
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14% leave because of dissatisfaction with the current product/service
AND...
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68% leave because of what they perceive as indifference from the merchant or someone within the merchant's organization. They feel unappreciated, unimportant and taken for granted.
In another study, some other interesting statistics are presented (Frederick Reichheld, The Loyalty Effect):
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Major global corporations now lose, and must replace, half of their customers in just 5 years.
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A typical company's customers leave at a rate of 10 percent to 30 percent per year, and this number grows annually.
So, what's the point? I think we can all ask ourselves the question, "Do our customers perceive us, and our companies, as "indifferent?" If they do, let's all realize there can be a huge cost. Second, are we working with just anecdotal evidence, or do we have plans in place to measure customer satisfaction? Do we know what we think we know? Third, if we have measurable data, what do we do with that information to change and positively impact things? Do we believe in continuous improvement in customer service efforts? Though there are always the unforeseen or non-controllable issues, many things impacting customer service are controllable. Fourth, do our employees have the knowledge and training to provide excellent customer service? Do we know how to answer that question? Invested where needed, training dollars invested in excellent customer service will pay big dividends.
Should some of your dealerships' employees need training in sales and customer service management, The AED Foundation offers three self-study modules covering that subject. Contact Pat Novak at 630.468.5135 or pnovak@aednet.org. Content outlines are below.
Sales and Customer Management 101:
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What is the value of sustaining and promoting productive relationships between the dealership and our customers?
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Who are my dealership's customers and what are they seeking from my dealership?
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How can I effectively reach prospects and customers for my dealership through marketing?
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What can I gain from learning about how to establish, strengthen, and maintain productive relationships between the dealership and my customers?
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How do my behaviors affect the interpersonal relationships between myself and my customers?
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How do my interpersonal relationships with prospects and customers affect my ability to accomplish my activity and productivity goals?
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What can I do on an individual level to establish, strengthen, and maintain productive relationships between myself and our dealership's customers?
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What can I do to help those I manage to establish, strengthen, and maintain productive relationships between themselves and our dealership's customers?
Sales and Customer Management 102:
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What is my definition of "Sales"?
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What can I gain in my own position from learning more about the sales process and sales best practices?
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What am I currently doing to improve my sales skills? Am I willing to invest more time to practice and implement the techniques that I will learn from this course?
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How can I help others in my dealership to develop the sales acumen that they need to promote customer satisfaction and retention throughout the dealership?
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What is my mindset when it comes to closing a sale? What are my usual closing techniques and behaviors? Do these work for me?
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Am I satisfied with my ability to write clearly and concisely? Do my written communication abilities help or hinder my current level of professional performance? What can I gain from sharpening my skills in writing?
Sales and Customer Management 103:
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How do I currently work with my employees when their work performances need improvement?
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How do I teach my employees sales and customer service best practices?
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How successful have I been at recruiting and retaining successful employees for my dealership? What is my current interviewing process? How is it working for me?
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Do I have good relationships with coworkers and clients/customers? Am I able to get others to work with me effectively? How do I prepare to present my ideas, thoughts, plans, or requests to coworkers and clients/customers?
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What can I gain from learning how to prepare effectively for sales calls, sales meetings, interviews, and formal and informal presentations?
Article Date: 04-12-2012
Copyright(C) 2012 Associated Equipment Distributors. All Rights Reserved.
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