All the answers to your unique business lifestage questions
There are five - and only five - reasons why people STOP BUYING.
- 4% are gone. They move, get promoted, transferred, divorced, die or whatever. They are simply no longer in a position to make a buying decision.
- 5% change suppliers on the recommendation of a friend or business associate. Stay in touch with them, you may get them back - sometimes quickly.
- 9% change because of a true competitive advantage; an honest benefit offered over your product or service, and usually this means price.
- 14% change because they are unhappy with your service or product. (You're better off turning a customer away, than selling them something that's not right for them. This way you build trust and leave the door open to come back when you feel you have something that fills their needs. Selling something that's totally wrong for the customer can close the door on you forever.)
- 68% of People stop buying from you because of a perceived lack of caring expressed by your company!
That's 68% of customers you never had to lose. They did not think that you cared if they returned and bought off you or not. You had not kept in touch with them or shown them in any way that you valued them as a client or appreciated their business with you.
(By the way, resolving a customer complaint quickly and efficiently will save 95% of the customers who complain. Just listening to a customer's complaint will salvage more than 50% of them!)
Source: From U.S. government study "Why Customers Stop Buying.