BRX Pro Tip: Why Customers Leave
Stone Payton: And we’re back with Business RadioX Pro Tips. Lee Kantor, Stone Payton here with you. Lee, what is the – I don’t know, I guess, the right word is psychology. What’s happening? What’s behind customers leaving, you think?
Lee Kantor: Yeah. There is just – businesses are so focused, especially in retail, about kind of how to solve this problem where customers are just not sticking around as long as they would like, and you’re always having to get new clients. And it’s something that is just happening more and more as there’s so much more competition and the customer is so much more fickle.
Lee Kantor: So things to understand about this trend is it’s not always about price. Most customers leave because they feel undervalued or ignored, not because somebody is selling, well, what you’re selling a dollar cheaper. And because of that, you want to be focusing on creating some sort of an emotional connection and not just kind of a bottom-line, I sell it cheaper kind of approach. So you want to give your customer reasons to buy from you that go beyond kind of what it is you’re selling. You got to give them a why, why they should be sticking around.
Lee Kantor: And then you got to remember that when a customer leaves, they’re not going to be telling you why, that they’re going to leave. They’re just going to quietly leave. So if they’ve been, you know, building resentment over time or doubting that you can deliver on what you’re promising, they’re just going to go.
Lee Kantor: So it’s important to stay proactive and have regular kinds of check-ins that aren’t just about, you know, superficial stuff. You want to really understand what they’re doing, what has changed in their business, and what you can be doing to improve so that you can wow them the next time.
Lee Kantor: Because ultimately, you want to create advocates. You don’t want to just create clients. So the more engaged the client is, that’s a better retention tool for you. And it’ll keep them around longer. It’ll make you more sticky.
Lee Kantor: So create some sort of feedback loops and spotlight their success stories. Turn them into advocates who are enthusiastic about the relationship. You don’t want to be kind of taken for granted by your clients. You want your clients to not only just stay, but you want them to bring their friends along and refer more business to you.
Lee Kantor: So in order to reduce kind of the customer churn, you have to understand your clients better. You have to understand their mindset at a deeper level. You want to create meaningful bonds, and you want to get ahead of issues before they snowball into problems.
