Keeping Your Customers

As salespeople we work HARD, to gain our new clients. But for most of us that’s only half the battle. Even if you do simple transactional sales, or if you have a more complex sale, you need to keep your clients, and keep them happy.  If Apple had issues with the ipad and wifi problems how soon do you think they would have people working on it?

The leaky bucket…that’s what I call you customer loss rate. Now don’t get me wrong you are going to lose customers. They will move away, close their doors, or get bought out by a larger company that may not be in your territory.  So what is your loss rate and do you know why?

The first step to stopping the leaky bucket is to figure your loss rate, how many customers stop ordering from you in the usual cycle, whatever that may be for you business? Your next step is to find out where they went. Say you have a 100 customers and 10 did not order from you this past year, your rate is 10%

Now why? Why did they not order from you?  You will find that anywhere from 2-5% are for the reasons I had stated previously (you can add a few others).  The rest?

I have asked my clients, some of whom we as a company try and win back…They left because

1. They don’t see or know the rep ( Is your industry high turnover?)

2. Calls are not returned

3. Incorrect billing

4. They(you) don’t understand our business and our needs

5. Thing don’t get done/Don’t work as they are supposed to.

So what can you do to prevent this?  Whether your the salesperson or the manager this is costing you and your company money. Money in lost revenue, referrals, and if you a manager, your employees. They are more likely to leave if you don’t help keep their customers.

What is the revenue generated per sale, and profit? Now figure how much your leaky bucket is costing your company…and you? What will you do now that you see that money floating away?  How hard will you work to stop it?

In the next article I will explain what we have done to cut our loss rate…in the mean time let me know other reasons you may have stopped using a company? or things you do to prevent losses.

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