Why do Customers Stop Doing Business With You?
As a Customer Engagement Manager, I strongly believe that customers do not quit easily unless you have done something worse. The onboarding process from one product to another is one of the most difficult and challenging tasks for customers. This process not only requires a lot of time but also a risk of losing data or going down for a specific period. As per my assumption, customers do not consider leaving your company due to the issues in your product or the unavailability of the features in the product. As per a Survey done by the US Chamber of Commerce, 68% of customers leave because they’re upset with the treatment they’ve received.
As a service provider, you understand that customers always have the option to switch you with any other company. The reason why customers do not switch you is that they feel valued while working with you. As per my experience, I have explained some major reasons below why customers stop doing business with you and switch to the other product:
1. Trust
Trust is the major effect due to which customers stop doing business with you. When customers start feeling that you aren’t being honest or straightforward, they’ll question your value and withdraw their services. The only way to prevent that loss, and that’s to be as honest and direct as possible, consistently and from the beginning of the relationship.
2. Support and Care
Most of the customers quit your business because they think that they are not being taken care of and provided the support services for what they have signed up for. You always have to make sure that your customer is happy with your support and services. You can take feedback from them time by time and improve your standards according to the customer’s expectations.
3. Billing or Budget:
The core purpose of a business is to earn profit and when the expenses of running a business get higher, customers have to eliminate the expenses. They are forced to cut optional services, to allow a bigger budget for something more important. This is a hard scenario to address, but you do have a few options here. You can allow the customers to pay less for a smaller range of services. This will put a positive impression on the customers and when they are out of the bad period, they will do more business with you.
4. Value
One of the major reasons is Value of the business. If the Customers do not see an objective value or Return of Investment (ROI) in your products and services, they will reconsider your services and most probably aren’t going to stick around. You need to know that this isn’t your customer’s job to calculate and prove that ROI, it’s yours. You will have to ensure your customer that using your product or services they can meet their ROI, etc.
5. Needs
As time goes by and technology gets upgraded, customers need change. As per my experience, most customers do not need your services because they hire the employee to cover what they have bought from you. Companies usually do it to minimize expenses. And, unfortunately, there’s no easy way out of this one. You can’t change your customer’s needs.
We have faced such a situation and to overcome this, we offer our customers to offer the same services according to their new vision, goals, and structure.
6. Failure of Product/Service
The smaller issues or bugs in your product do not make your customer’s mind switch the product. But if your product cause losing the customer’s revenue, or screw up on any major project, they will not rethink to leave your product with a very bad impression. You have to make sure that the product is working fine in the customers’ environment.
Feel free to reach me at sajidmajeed270@gmail.com for any queries or to highlight any issue in this article.
