In a recent
study conducted by author Dan Kennedy to discover why clients
leave their vendors, his findings were dramatic. 68 percent of
clients who leave do so because they feel unappreciated,
unimportant, and taken for granted. Remarkable. So while you
are working on the quality of your product and your pricing,
give some thought to your customer service. You know they say
it costs less to keep a client than to gain a new one. What do
you think it costs to lose 68% of your client base?
And yet there are many businesses that take clients for
granted while at the same time competitors are calling, faxing
and emailing those same customers.
Lost Clients Can Mean Found Business
Studies show that previous customers, even if inactive or
dissatisfied, respond to sales calls and emails at a rate
several times higher than customers who have never bought
before.
When you take the time to find out why people defected from
your customer ranks, customer retention improves, even before
you fix whatever problems they complained about. Why? Besides
in specific gripes about things that went wrong in a buying
relationship, the most common reason for defection is a
feeling that the company just didn’t care; in other words,
customers felt unappreciated.
What do you do if customers leave? What do you say to find
out why the customer left and - how can you earn the business
again?
Winning Them Back
When a telephone call does not work, a very effective email or
direct-mail letter - with the right components - can remind
inactive customers of the benefits you offer and what they may
be missing.
What Works Best?
A personal letter - with a P.S. or note of enclosure beneath
your signature and a colorful savings coupon, followed by a
telephone call - is very effective.
What not to say: You may be tempted to call an inactive
customer and ask, “Why did you stop buying from us?” Not
exactly the most tactful way to ask.
A Better Phone Call
Sales Rep:
“I’ve studied
your account (or reviewed your file) and found that it’s been
[length of time since they last purchased] since your company
last purchased your [products they bought from you] and I’m
concerned that you may be running low on [insert products].
Shall I send you a case today?”
Or:
Sales Rep:
“Last year we had the opportunity to supply you with your
[products they purchased from you]. I’d like to ask you a
couple of questions and give you new information about
benefits you may qualify for, so you can decide whether it
would be worthwhile for you to take another look at what we
could do for you in the way of [type of products they bought
from your company]. Okay?”
If that doesn’t work, the following question should get an
answer from the customer, so you will find out why they
stopped buying from your company and what action you can take
to win back the business:
Sales Rep:
“I know that not every company is perfect in every way. If
there were a way you feel we could improve our products or our
service, I hope you will tell me what that is. I would really
like to know because I value our relationship (or: I hate
losing your business.)”
Very Important
After you say this, don’t say a word until the customer
speaks. It may be difficult to stay silent, but it is the only
way you will get an answer.
Ann Barr is a consultant and sales coach who has written eight
books on sales and marketing. Email Ann at
Ann@SellingSupplies.com Get a free E-book when you sign up
for her free Weekly Sales Tips e-mailed newsletter at
www.annbarrblog.com
