7 Reasons Your Small Business Is Losing Customers


The reality of owning a business is that your customers will continuously come and go. In an ideal world, you would be able to attract and retain the perfect number of customers and be able to rely on their loyalty. While you can achieve this to some degree, it’s never guaranteed or set in stone. 

As a business owner, this highlights the question — why are your customers leaving? If you’re stumped as to why you could be losing customers, this blog outlines what you might need to change. 

Common Reasons For Losing Customers: What You Could Be Doing Wrong 

According to research, 13% of customers tend to stay loyal to just one brand. Over 80% of customers prefer to shop around for services, while almost 60% are inclined to switch to a new brand if they’re not happy. 

Sounds like the odds are not in your favor, right? If you’re looking to reduce churn or turnover of your customers, here’s where your new business opportunity could be going wrong. 

1. Your Customer Service Is Not up to Scratch 

One of the fastest ways to lose a customer is through poor customer service. What’s worse is that they could leave a poor review of your business which also tarnishes your reputation. So if you’re losing more customers than you’d like, it may be worth looking into your level of customer service. 

The customer service team of your business is not a random department. They are the ambassadors of your business and how they treat your customers has a major impact on your bottom line. To your average customer, your level of customer service defines your business. 

Take some time to assess how customer queries, complaints, returns, and refunds are being handled. Make sure every member of your customer service team is suited to the role. Remember that most customers are not inclined to tell you about poor service — they just won’t come back. 

2. Your Services Failed to Meet Customer Expectations

When a new customer enlists the services of your business or uses your product, they have a certain level of expectation already created in their minds. When your business fails to meet these standards, this is where it all goes wrong. 

It’s difficult to change the mind of a customer once your product or service has failed to deliver. Why would a dissatisfied customer stick with your business, anyway? With so much competition to choose from, they are less likely to give you a second chance, and far more likely to move on to a competitor. 

This is why it’s important to focus on designing and building a service or product that meets customer expectations. In other words, your product or service should do what it claims to do. Do your market research, use experts, seek out advice, and always use quality materials for your products. 

Learn to manage your customer’s expectations. Don’t make bold, unrealistic claims about a product or service that you cannot fulfill. Make sure both you and your customer understand your business’s brand promise and deliver on it.  

3. You’ve Chosen Price Over Value 

What your customers are looking for is simple: value-for-money. But when your business tends to focus on profit and price a little too much, this is where you can lose sight of the value of a product or service. 

Remember that price isn’t always the most important factor when creating a successful business. You have to offer your customers good value for what they’re paying in order to encourage customer loyalty.

Smaller businesses aren’t in the best position to partake in price wars, anyway. Think carefully about your product or service and what you would pay for it, as a customer. If it seems fair or realistic, your customers should think so, too. 

4. Your Brand is Riddled with Inconsistency

In the world of business, consistency is the one thing that breeds trust in your customers. If your business displays inconsistencies, this doesn’t create a very reliable picture. Consistency across your business and branding is what gives your customers peace-of-mind that they’ve made the right choice. 

According to Designhill, Creative designs and illustrations help your customers to understand your services. This also makes sense and creates a strong engagement between you and your customers.

The same goes for your customers learning to understand your business and what you offer. How can you expect your customers to get to know you if your business is conducted inconsistently?

Consistency applies to all aspects of a business. From your branding, company name, and logo, to social networking, the quality of your products, and service, and more. 

5. Outdated Sales Tactics 

Businesses tread a very fine line when their focus is all about the bottom line and watching their sales numbers increase. In today’s world, good business is based on customer loyalty and trust. No one wants to be strong-armed into making a purchase. These types of outdated, heavy-handed sales pitches are a sure-fire way to chase your customers away. 

Aggressive salespeople are intimidating and off-putting — there’s no other way to put it. The same goes for dragging your customers through a long, laborious sales pitch.

Instead, you should focus on value-based sales techniques and take the time to learn what your customers need. Build solid, trusting relationships with your customers who come to know and rely on your brand. 

6. You Fail to Reward Customer Loyalty 

When was the last time you rewarded your customers for their loyalty, if ever?

A great way to encourage your customers to rely on and trust your business is with customer loyalty programs. You can offer incentives to keep your customers coming back for more, versus jumping ship for your competition. This includes customer discounts, customer promotions, and shopper incentive schemes. 

7. You’re Using Out-of-Date Technology

In today’s connected world your customers are looking to do their shopping, and get it done quickly. A slow, glitchy, or non-user-friendly e-commerce website or business website is so detrimental to your customer loyalty. 

Take the time to update all of your business tech, including e-commerce platforms, other websites, blogs, and social media accounts. Ensure that all of your business platforms are mobile-friendly, especially if you operate an e-commerce business.

Looking For More on Entrepreneurship?

No business owner ever feels good about losing customers. Sometimes it’s inevitable, but most of the time it’s avoidable. You just have to take the time to understand both your business and your customer base. 

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