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Where Did All My Customers Go? The Top Reasons Customers Leave

By: Brittany Engelmann-- 2017-01-04 7:00 am --

As a small business owner, your customers are your entire source of livelihood. It’s no wonder then why a sudden decline in business could cause a business owner to panic. Every business is bound to experience a normal ebb and flow of sales throughout the year, but if your business is continuously declining, this is a serious red flag. Here are some of the top reasons customers leave a business, as well as practices you can implement to reduce the business churn.

  1. They found better value elsewhere.

Value is the primary factor customers seek in a brand, and value consists of a combination of cost and quality. The cost of the product needs to remain competitive with comparable products in the industry, while maintaining a quality that is fair for the price. You should be routinely conducting market research to determine the value of your business offerings compared to your competition.

Just because you provide competitive value today, doesn’t mean you’ll remain competitive six months from now, and you need to be prepared to alter your strategy, pricing model, or business offerings as the economic climate changes. A key way to increase value to your customers is to ensure you’re getting the best value yourself. If your overhead is too high, it will reflect in the prices on the consumer end, so you need to partner with the best suppliers to keep your prices low.

  1. They experienced poor service from an employee.

According to data collected by Insights from Analytics, poor customer service is a primary reason businesses are losing customers. In fact, their survey found that 68 percent of respondents claimed customer service was the key factor in determining whether to stay with a company. Major brands are less impacted by this phenomenon than smaller companies. One of the primary reasons customers visit small businesses is due to an expectation of superior customer service. As a small business owner, you need to be going above and beyond in your treatment of customers, as it will improve both customer retention and word-of-mouth marketing.

  1. They lost trust in your company.

Customers lose trust in a company for a variety of reasons, but perhaps the most common is when a company fails to follow through with their promises. Here are some of the main ways companies fail their customers.

  • They run out of stock of an advertised product.
  • They don’t ship their products in a timely manner.
  • They don’t maintain an efficient storefront.

Customers demand efficiency, and they expect the businesses they frequent to follow through on their promises. To be reliable as a company, you need to have reliable players on your team, including all employees, business partners, and suppliers. If your supplier is unreliable, that will reflect back on your company, as your customers experience the residual impact.  

At DollarDays, we understand the critical impact suppliers have on the business of the companies we sell to. We understand that trust and reliability are key factors in building lasting relationships with our own customers, and allowing our customers to thrive in their business pursuits. By partnering with DollarDays as your primary supplier, you can ensure all shipments arrive on time and in excellent condition, allowing you to provide your own customers with outstanding service. Contact us today to learn more.