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losing-customers

Why Many Small Businesses Are Losing Customers

According to a study, businesses lose 10-25% of their customers each year. This is an alarming number, especially if you consider that attracting new customers is a lot more difficult than retaining old ones.

 

Therefore, it’s imperative that you discover why your customers may choose the competition over you, and how to prevent that from happening.

 
 

Bad Customer Service

 

Unsurprisingly, the number one reason behind small businesses losing clients is bad customer service.

 

It goes without saying that providing insufficient customer service is unacceptable. In most industries, customers are educated about their choices and “spoiled” by the vast selection of products they can choose from.

 

Make sure you really care about your customers’ issues and be passionate about providing a quick, reliable, and consistent solution.

 

But while many products developed by competing businesses are similar to each other, customer service is the area where companies can really stand out from the crowd.

 

If you want to make a difference, don’t think of customer service as a necessary evil, but as an integral part of your business. Make sure you really care about your customers’ issues and be passionate about providing a quick, reliable, and consistent solution.

 
 

Letting Customers Forget About You

 

Many small businesses don’t need to have regular contact with their customers.

 

While this is unavoidable in most cases (after all, you can’t get people to come into your shoe repair shop unless their shoes need repairing), it may quickly lead to customers forgetting all about your business.

 

Offer rewards to returning customers to prevent losing them and to show how much you value their business.

 

Remind them of your existence at least once a month. Send them emails notifying them about your current or upcoming promotions, new blog posts, or interesting articles you found online.

 

Anything is good as long as it keeps your business in your customers’ minds until the next time they need something from your shop.

 

Another great way to keep your customers excited about your business is developing a loyalty program. Offer rewards to returning customers to prevent losing them and to show how much you value their business.

 
 

Failing to Interact

 

The internet, especially social media platforms, allow businesses to interact with customers on a daily basis. This goes a lot further than traditional customer service: after all, you’re not restricted to talking about your products or services.

 

Find out which platforms your target market likes to hang out on, and develop a presence there. Besides sharing your promotions and blog posts, you can take an interest in other things your potential and existing customers like to do.

 

Find out which platforms your target market likes to hang out on, and develop a presence there

 

Do you sell sports equipment? Hang out on forums for running, camping, and any other activities that have a remote connection to your products. Engage in conversations, share your passion, and become a part of your customers’ everyday life to prevent losing them to the competition.

 
 

Not Focusing on Value

 

Competition is fierce in almost any industry. Big corporations have many advantages on their side, including economies of scale. This means that small businesses – in all likelihood – won’t be able to offer a lower price than big companies.

 

Many small businesses try to defy that, and offer prices so low that it hurts their business. This is not an effective strategy, and quite unsustainable in the long term.

 

Focus on what makes you different and emphasize that instead of a low price.

 

Luckily, price is not the only thing that helps customers make up their minds about a purchase. Instead of price, try to focus on added value and quality.

 

While your products may be a bit more expensive than those of a big corporation, your customers get so much more for their money, like a handmade product or VIP treatment.

 

Focus on what makes you different and emphasize that instead of a low price.

 
 

Outdated Technology

 

Clunky technology creates impatience, distrust, and ultimately results in losing customers. Make sure your website is up to date and optimized for mobile devices, and offers convenient and easy payment methods to your customers.

 

Make sure your website is up to date and optimized for mobile devices, and offers convenient and easy payment methods to your customers.

 

And don’t forget your business partners. Quick and efficient payments are at the heart of every business relationship.

 

The next time you need to send a payment to a business partner, try Veem.

 

Veem allows you to send and request global payments with just a click. Veem offers real-time tracking for all of your transactions, competitive foreign exchange rates, and charges no wire fees.


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