How to get back your Lost Customers
Everyone agrees that the customer is very important, however, only a handful of forward-looking companies in UAE spend the financial resources, effort and time required to develop a customer base that is truly loyal.
To successfully execute a loyalty strategy, you must truly understand what it entails to provide the types of experiences Dubai customers will return for and also refer their friends and families to.
Statistics have shown that UAE companies on average loose about 15% – 20% of their customers yearly. There are numerous reasons customers leave. Some relocate, some pass away, some close down their business and some are enticed by competitors.
However, most customers leave for the reason that they just feel you do not value them or their business. This may sound childish and immature but it is the truth. It is possible that you might care, but if they believe in their minds that you don’t – then you don’t. Customers are lost by the UAE businesses as a result of opportunities that were ignored.
The majority of UAE companies nowadays do not recognize the number of customers they have lost, much less make an effort to bring them back.
In general, businesses lose between 15%-20% of its customers annually. When you cut defections in half, the rate of growth on average more than doubles.
The majority of UAE companies will not attempt to get back ex- customers just because the process could be a painful one. To win back customers, you must first identify the reason they left in the first instance. Studies have shown that the reasons customer relationships fail is similar to the reasons personal relationships do and that’s lack of communication.
If you intend to control the number of customers that defect to the competition, your strategy ought to include reviewing the following issues:
- The price of getting new customers that will be loyal
- Advertising and marketing budget yearly
- Average volume of business by loyal customers
- Number of complaints by customers yearly
- A system for measuring and keeping track of defections
Put a call through to them and find out their reason for leaving. Hearing directly from them is a great way to learn the reason they left and make an effort to bring them back. Most of them will be forthcoming with their reasons and also tell you what must be done if you wish to get their business back again. And if they don’t, they will at least let you know why they were so unhappy with your company that they had to leave – providing you with the chance to fix a hitch within your UAE company.
You have a better chance of winning customers that you inadvertently pushed away due to a mishandling in the process, like service, billing or delivery issues, and those that were seduced by the competition who provided them with what they see as a better value.
Research has shown that you have a 20% – 40% chance of selling to a former customer successfully as against a 5% – 20% chance of selling to a potential customer. The margin is pretty wide! Already, your former customer is very much aware of what your services or products are capable of and don’t need much convincing. And, you already have a relationship. You’ve got an enormous advantage over the competition since you already know how they buy.
Pay attention carefully and then, solicit their business. When you pay attention to detail, build trust, show respect, express appreciation, are proficient plus polite, your customers will most likely return to do business with you. Keep communication line with UAE customers open and talk about the concerns that prompted their leaving. At times it is simple, whereas other times there are genuine problems that must be dealt with.
Ensure you don’t make another customer storm out the door or drop the phone promising never to come back to do business with you. Keep in mind that by just increasing your retention rate to just 5%, your profits of your UAE business can grow from 25% – 100% per annum—that’s a lot!