Winning Back Lost Customers

Every year, the average firm loses 20-40% of its customers. And when a longtime customer defects, the negative effect on profit is substantial. This profitability deficit can not be recovered by simply recruiting a new customer.

Lost revenue is not the only problem – you are also losing goodwill. Each lost customer is a potential ambassador of bad news – acting as a bad virus in your market place.

Lost customer studies defections include – complaints not handled, competitors offering better value, relocation changes, vendor choice. But the primary reason comes under the “no special reason” heading. Analysed, customers have left through benign neglect. You failed to tell them you cared. You failed to keep in touch. You took them for granted. The bottom-line – you made it easy for them to walk away.

Message: Take measures to demonstrate to parted customers they are missed and you care for their return.

Long term customers deserve high priority, and if you lose one of them, you must take action to get them back.

22nd April 2003