This post is part of the 📖 Never Lose a Customer Again series.
Today, I am reading Customer Defection: A Structural and Cultural Problem chapter from the book Never Lose a Customer Again: Turn Any Sale into Lifelong Loyalty in 100 Days written by Author, Joey Coleman.
Across all industries, somewhere between 20%-70% of newly acquired customers will stop doing business with a company with the first 100 days of being a new customer because they feel neglected in the early stages of customer onboarding.
In Never Lose a Customer Again, Coleman offers a philosophy and methodology for dramatically increasing customer retention and as a result, the bottom line. He identifies eight distinct emotional phases customers go through in the 100 days following a purchase
Yesterday, I started to reading **[The Cost of Losing a Customer](https://5pagesaday.com/books/never-lose-customer-again-3/)** chapter from the book **[Never Lose a Customer Again](https://www.amazon.com/Never-Lose-Customer-Again-Lifelong/dp/0735220034/ref=as_li_ss_tl?_encoding=UTF8&qid=1608157224&sr=8-1&linkCode=ll1&tag=5pagesaday-20&linkId=3df73d6aa80d60dd73f7e1e5c60b58e2&language=en_US)**
CHAPTER 4
Customer Defection: A Structural and Cultural Problem
BUSINESSES ARE STRUCTURED AROUND CUSTOMER ACQUISITION, NOT CUSTOMER EXPERIENCE
These are the three key reasons organizations struggle with customer retention:
- Businesses Don’t Catch as Well as They Chase
- Companies Reward Acquisition over Retention
- Customer Service/Experience Employees Are Marginalized
THE FINANCIAL IMPACT OF A BAD CUSTOMER EXPERIENCE
Losing a customer costs a business in far more ways than direct revenue.
First, there are the sunk costs spent on the acquisition that will never be recovered.
Second, for every lost customer, overall profits decrease.
Third, without solid customer retention, sustaining a business is nearly impossible.
Fourth, every time a customer leaves, team morale suffers.
Finally, the emotions associated with losing a customer are often felt in the moment, yet seem to be forgotten before any changes are made to stop the losses from happening in the future.
Across a wide range of industries, a 5 per cent improvement in customer retention rates will yield a 25 to 100 per cent increase in profits.
That’s it for today. Tomorrow, we will see how to do that in the next chapter THE MANY BENEFITS OF KEEPING YOUR CUSTOMERS
Key Takeaways
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Across a wide range of industries, a 5 per cent improvement in customer retention rates will yield a 25 to 100 per cent increase in profits.
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In most businesses, the cost of customer acquisition falls in the top three most expensive line items in the budget. Depending on the business, it may even be the number one expense.
Do you know you can listen to this book on Amazon Audible for FREE?
If you are not into reading like me, then you can listen to this book for FREE on Amazon Audible
Don't Read. Just 🎧
Author(s): Joey Coleman
Part 4 of 16 in the 📖 Never Lose a Customer Again book series.
Series Start | Never Lose A Customer Again - Day 3 | Never Lose A Customer Again - Day 5