If you’re struggling with customer churn, it can be really frustrating trying to figure out the cause. There will be factors that you can’t control, such as your customers moving and things like that. However, more often than not, there are things you can do that cause customers to not want to come back to your business. The first step to fixing these issues is knowing what they are! Here three common reasons your customers aren’t coming back:
Lack of Communication
According to Sailthru.com, more than half of consumers reporting that they won’t return to a business if there is a lack of communication or marketing efforts.
Communication is key in any relationship, and business to consumer relationships are no different. If your customers don’t feel that you are communicating well with them, they don’t want to come back. Lack of communication could be something as obvious as completing a job without telling the customer the cost first, or what the issue is. However, there is much more to it than that! Lack of communication also means that you aren’t following up with your customers. Engaging with your customers is the number one way to get them to come back. When you don’t thank your customers, send appointment reminders, and keep them in-the-know, you risk losing them to someone who will. Don’t skip on engaging with your customers!
Another way businesses find themselves lacking in communicating with their customers is through social media. It’s pretty rare for a business to do well if they’re not present online, and specifically on social media. eMarketer surveyed businesses in the United States and found that 88% of them are utilizing social media. If you aren’t a part of that 88%, that could be a big reason why you struggle to keep customers coming back. Get involved with your customer base online and you’ll find it’s easier than you think to keep the communication going!
Misuse or No Use of Technology
Wouldn’t it be so nice if once you work with a customer, they are in your system forever? They don’t have to keep signing up, giving you their address, phone number and name? Well, the good news is, if you’re using technology, and using it correctly, that is the case! Fonolo.com reported that 64% of consumers get frustrated when they are asked to repeat their information multiple times. Instead of making your customers feel like it’s a hassle to work with you, why not make it easy? Use technology to your advantage and give customers the option to schedule their own appointments! Keep their information stored so you don’t have to ask them for it each time they come back. This makes working together easier on both of you.
Another benefit of storing your customer’s transaction data and contact information is for the sake of engaging. Not using technology when it comes to email and text engaging is a huge problem. If you are letting technology work for you, you are keeping all the data you need and using it to engage your customers. This goes hand-in-hand with communication, and it’s so important, it had to be mentioned twice!
Poor Customer Service
This is an obvious one, but it’s also one that needs to be mentioned. Consumers are twice as likely to share a bad experience with others, than they are to share a good one (2012 Global Customer Service Barometer). Poor customer service is a big reason businesses fail, and lack growth. Some tips for maintaining great customer service are:
- Streamline processes
- Be the expert
- Be up-front and honest
- Be personable, friendly and relatable
- Answer questions thoroughly, the first time they ask
- Respond to feedback: positive & negative
Keep in mind these common reasons your customers aren’t coming back, and you will be able to keep them around longer. Don’t shy away from technology, especially when it comes to growing your business.
For more insights on marketing strategy that actually works for small business, subscribe to the FreshLime Newsletter here. Connect with Jay Bean, Founder of FreshLime and Small Business Marketing Expert on LinkedIn and Twitter. And last of all, if any of these tips have helped you or if you have anything to add please comment below. We’d love to hear from you!