How to Win Back Lost Customers

Losing a customer is never a good a thing. Customer churn impacts a business in countless ways. When a business experiences customer churn revenue and profitability are reduced while marketing, lead generation and reacquisition costs increase.

In spite of this, statistics show that almost 70 percent of businesses have no strategy to win back customers who have walked away. This is especially surprising since every business will lose a customer at some point.

While it is easy to blame the customer for having unreasonable demands or expectations, the truth is, an unsatisfied customer is a great way to find out what you could be doing better. And when you discover areas to improve, you might be able to win customers back.

The most important step you can take after a customer leaves is to figure out why. People don’t want to switch companies or find another drycleaner, for example. So what happened that made them want to leave? Were your prices too high? Are your competitors offering better service? It is imperative that you get the answers to these questions to prevent more customers from walking away. If appropriate, you could even ask for an exit interview. When talking to a customer who is leaving, be sure and take responsibility and apologize if there were failures on your part.

Another approach (which if often overlooked) is to ask that customer what you could have done to keep his or her business. The answer to this question could provide priceless information on not only winning that customer back but on keeping others, as well.

Keep in mind that some customers simply aren’t a good fit. Maybe they aren’t willing to pay a fair price for your products or services. Or maybe they want something you simply cannot provide. In such cases, it is best to wish them well and walk away.

Many businesses wait a long period of time before they approach a client who has left. This is a mistake. Check in with the former client on a regular basis beginning soon after their departure. A quick note or phone call will make a big impression and might even lead a disgruntled customer back to your door eventually.

Finally, it is important to remember that some customers who leave aren’t disgruntled at all. They may have left for reasons that have nothing to do with you. In such cases, it pays to offer these customers an incentive to come back. Be careful, however, that the incentive you are offering is worth their while. Nothing will turn off a customer faster than a worthless offer.

When a customer walks away from you, it is tempting to write him or her off and never look back. With a little effort, however, you may be able to lure that customer back and find your relationship stronger than ever.