How To Transform A Lost Customer Into A Raving Fan
Churn rate is a topic that many entrepreneurs like to ignore. The inevitable loss of customers on a month-to-month basis certainly isn’t at the top of my favorite things to think about, but it’s definitely where I learn the most about our business. There are many reasons for a customer to stop buying. Understanding why is critical to learning and improving your product or service.
Early on in the development of your product there will undoubtably be problems. Things will break and change at a very fast pace. The delicate periods of finding product market fit, solving real customer problems, and providing a clear value add at a fair price are just some of the many issues early stage companies face.
Not every customer is willing to deal with the growing pains of your business, but that doesn’t mean they can’t help you improve it. I’ve found that taking the time to speak with lost customers about their experience has led me to discover things I would have never noticed otherwise.
In many ways the lifetime value of feedback from a lost customer far exceeds the revenue value they would have brought to the table as a silent customer. The insight they provide can help you understand the needs of your current and future customers, inform you of issues or product bugs that you may have missed, and improve the business as a whole for the better.
Taking the time to speak with lost customers can also have a multiplier effect. Many times I’ve stayed in touch with these former customers and reached out to let them know about changes we’ve made based directly on their feedback. The former customer not only then becomes a current customer again, but also transforms into a raving fan of the business.
Not every lost customer will be willing to provide you with feedback. Some simply won’t “get it.” Others will be rude, or ignore your completely. The key to managing customer service as a Founder really relies on learning to separate your emotional connection to the product and business simply being business. Business is always business. Your emotional connection to your company will not change that fact. Remember the Three F’s of Customer Service and stay fast, friendly, and focused. Keep your spirits high, be as kind as possible, and keep building.
You might end up with a few unexpected raving fans.