The top 8 reasons customers leave
July 27, 2010 by Ken DooleyPosted in: In this week's e-newsletter - Sales & Marketing, Latest News & Views - Sales & Marketing, New Research, Sales meeting ideas, communication, customer loyalty, sales management, training
When one of your salespeople claims that a customer left for a lower price, you’re probably hearing an excuse.
Customers usually don’t leave because someone else offers a lower price. They leave because your salesperson has done a poor job of taking care of them.
Customers will tolerate almost anything, including less than perfect service. What they are unable to accept is being neglected.
Some salespeople really want to believe that price is the problem when they lose a customer, since it is easier to blame the loss on something beyond their control.
But in actuality, research shows that neglect loses many more customers than price.
Customers leave if:
- They feel they are being taken for granted. Sales pros must work at making them feel special.
- They get the idea that the only time salespeople show interest in them is when an order is needed. Salespeople shouldn’t be predictable when it comes to “caring.”
- They feel salespeople come to their door only when they have something they want customers to buy. Are these the only occasions when your reps go to see customers?
- They feel salespeople spend too much time with — and lavish too much attention on — prospects.
- They feel sale reps are only interested in them when they are placing orders.
- They feel salespeople do a poor job communicating with them. Are invoices all they ever get from your company?
- They feel sale reps are only interested in “big accounts.”
- They feel that salespeople drop them like a hot potato once they close a sale. They are pleased with the fine way they were treated at the beginning, but they noticed a difference once they became customers. Such an approach not only leaves a bad taste in customers’ mouths, it makes it nearly impossible for positive relationships to develop.
It may be a good idea to reproduce this list and pass it out to your reps at your next sales meeting.
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Tags: Communicating, invoices, list, neglect, price, relationships, service
July 29th, 2010 at 2:22 pm
I just started reading your “8″ reasons why customers leave … and immediately thought, “now that is definitely hype for a marketing seminar”! It is and I wanted to let you know that you may be definitely out of touch with what is going on in this economy today! You might want to step up your standard buzz lines and bring them up to speed closer to today’s WORLD CONDITION … because most definitely things are not working as they have in the past. Folks are dying out there and yes they are leaving because of costs!!!!! While we all know that some sales people operate just like you laid out, that is far from true —- with regard to your statement that customers are NOT leaving because of cost today!!!! Because I am a passionate, dedicated, service-sales agent, I feel often that all of the PAT marketing seminars and buzz hypes come from those who are “out of touch” today and thought you might be interested in hearing some of our comments! Thank you!
July 29th, 2010 at 6:51 pm
I think okay, well so what do you suggest the vendor to do with the customer when they are not buying things from us? I can point out all kinds of stuff and it won’t make a difference unless I can offer real solutions regarding the trouble I am pointing to.
I think that it would be more useful to offer suggestions on what to do with customers when you are not trying to sell them something? Who has money to give out free stuff anymore? A newsletter with valuable information pertaining to the products sold just gets trashed or not even read at all. What do you expect the sales person to do is what I wonder?
July 30th, 2010 at 2:11 pm
How insulting. While the eight reasons listed do hold true, communicating in this manner is a quick way to burn the most valuable relationships a company has. This was clearly written by someone who doesn’t like to be sold and who doesn’t appreciate the work sales people do. I suggest you take your little breifcase out into the field and see for yourself that price is very much an issue today.
FYI, sales people are a company’s primary customer. Don’t tell your primary customers they make excuses when they lose sales due to price. Instead, show them how your higher priced product has a higher VALUE position that trumps cheep and give them the tools to effectively communicate that position. Don’t imply they are lazy, uncaring, or greedy when a high price position costs them the sale.
August 2nd, 2010 at 11:10 am
While I do agree that price is a huge piece of the pie, I would also suggest that my customers want me to stop in even for just a moment to say hi or to phone in and to keep that relationship in tact. I have heard time again from sales people stating that they have called on a company, once or twice and ‘never got anywhere’. Well, “duh”, why should the customer put a purchase order in the hands of someone that doesn’t take the time to allow the prospect to develop trust? I am still calling on companies with no visable financial results that I started calling 3 and 4 years ago. On the other hand, I am collecting orders from companies I started calling on 3 and 4 years ago. Their comments as to why they have placed the order with me has mostly to do with the word “Trust’ and with that they also state that in most cases, I am not the lowest bid. Make the calls and make the prospect feel that it is about a relationship deeper than the dollar.