What Can Cause Companies To Lose Customers?

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It is, of course, difficult for companies to attract customers. But you’d hope that once you have brought them on board, then they’ll stay as customers. It is, after all, much easier to market to your existing customers rather than new ones.

Indeed, it’ll be your regular customers that provide the backbone of your success. Alas, there are no guarantees that a customer will stay with you. People leave for all kinds of reasons. In this blog, we’ll run through some of the most common reasons why customers look elsewhere. 

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A Bad Experience

If a family member messes up, you’ll likely forgive them. When a company messes up, you’ll be more inclined to call time on the relationship and move on. This is why it’s so important to keep your standards high. You can never take a customer for granted!

If they feel that the standards have slipped, or they have an overly negative experience that sours their view of your company, then they’ll be unlikely to stick around. Of course, all companies make mistakes. A bad experience doesn’t have to mean a lost customer if you go to additional lengths to rectify the mistake and win them back around.

Negative Press

We live in a connected world. And that is very often good for companies, since it means that they can target customers that would have been impossible to reach in days gone by. However, the bad side is that if there is any controversy involving the company, then everyone can know about it. If you have negative press, then you’ll have to work additionally hard to build your reputation back up — but even if you do, a loss of customers will be likely.

If a lawsuit is filed against your company, then you might find that you suddenly have a problem on your hands. To prevent this from happening, then take a read of the Zarwin Baum Lawsuit blog. They discuss lawsuit prevention practices that can help minimise the chances of a lawsuit being filed against your business.

A New Competitor

Here’s why you should never take your customers for granted: there is always a chance that a new competitor pops up that does things better than you do. And if that happens, you might find that your share of the market reduces significantly. One way to get around this is to have a culture of innovation, which will ensure that you’re always pushing forward — it won’t matter which new companies pop up! 

Grand Changes 

While it’s important to innovate and keep pushing your business forward, be aware that there are risks from changing too much. If you’re pursuing grand changes at your company, then you might find that your customers don’t like what you’ve become. People grow an attachment to companies, but if it feels like a different company, then that attachment will be compromised. Of course, changing for what you perceive to be for the better will likely bring in new customers, but you might lose some of your existing ones.

About the author

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Like Minds is a global thought leadership platform delivering world class events on business development, knowledge and insight aimed at entrepreneurs and business leaders to engage, stimulate and empower them to become global businesses of the future. We also offer a bespoke service for corporate clients and training programmes under the Like Minds U brand. For more information please email bespoke@wearelikeminds.com