Weekly Edge

Moments of truth…

Heather Frame - Monday, October 16, 2017

Do you know what your Moments of Truth are?  They are times when it really counts to impress someone with your service.

 

Do you know what yours might be?

 

Take the time now to list as many of them as you can.  Be ruthless with yourself.  A good place to start is with your customer interaction.

 

Once you’ve jotted down some of your Moments of Truth, you’ll begin to see why it is customers leave you for a competitor.  You’ll begin to develop ideas to stop this in its tracks.

 

Before we go any further, here’s some statistics about why customers leave that may startle you.  They are:

 

1% due to death

3% due to a house move

5% due to buying from a friend

9% due to being sold by a competitor

14% due to finding a better product or price

68% due to perceived indifference

 

These figures are staggering.  68% of your customers leave because they perceive your business to be indifferent to their needs.  They feel you just don’t care.

 

Now look at how many leave because of the efforts of your opposition.  The figures are so small as to be almost negligible.  Only 9% are swayed by the active efforts of your competitors, while a mere 14% find a more attractive deal elsewhere.

 

Remember the 80:20 rule?  If you were to really do well with only 20% of your customers, you’d be looking after those that account for 80% of your revenue.  So how hard is it to hang on to that 68% slice of customers who leave just because they think you don’t care about them?  Putting this another way, how easy would it be to retain that 20% of customers who contribute the most to your bottom line just by treating them well?  Why do all the difficult (and costly) things to shore up your bottom line when a simple remedy like offering great customer service can do it for you?

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