Two reasons why your customers desert you

There are two types of reasons why your customers are leaving you.

One category of reasons is the ‘hard’ category – which is easy to fix. The other category of reasons is the ‘soft’ category – which is hard to fix.

The ‘hard reasons’ are variables such as product quality, stock availability, over-priced items and the like. These problems can be fixed easily. Unless you fix them, you don’t have a business. That is why I wrote that ‘customer service won’t save your arse’.

The soft touch problems are the ones that are harder to fix and that relates to those ‘qualitative’ elements such as customer experience, service quality and sales approach. Ultimately the big problems that are hard to fix are those soft and squishy people issues. It boils down to having the right people doing the right things right. Translated: recruit the right people, train them well and then equip, empower and reward them to do the right thing.

An interesting article on Fast Company explored the difference in employee happiness in Denmark and the USA in terms of happiness, and isolated five factors. I list four that relevant to your business here:

  1. Reasonable working hours.
  2. Low power distance. (I.e. not having ‘bossy’ bosses.)
  3. Constant training. (This relates to the workers being equipped to do the job.)
  4. A focus on happiness.

I am sure you can add your own to this list, but the point I want to make is that all these things add up and reflects the culture of your business. You don’t need to have a consultant tell you if your culture sucks – you will know that. What I can tell you though, is that IF your culture sucks, you are unlikely to be able to build a sustainable, long-term business.

If I am right, what does that make your number one priority in business?

GANADOR: Experts in Business2Retail : Acquire, Engage and Retain Customers