In my last article, I revealed the 11th marketing fundamental: You need to continually reengage your lost or former customers (also known as remarketing).
Why is remarketing or customer re-engagement so important for your business or company? The following three stats will reveal why:
- “The average American company will lose 23% to 30% of its customer each year due to a lack of customer loyalty.” – 70 Powerful Customer Retention Statistics You Need to Know in 2021 (Semrush.com)
- “The average monthly churn rate for a SaaS company is 3-8%, and the average annual churn rate is 32-50%.” – Customer Acquisition Vs. Retention Costs – Statistics And Trends (Invespcro.com)
- “…the average business loses about 10 to 25 percent of its customer base per year. ” – What Percentage of Customers Does a Business Lose Each Year? (Smallbusiness.chron.com)
These stats reveal the truth I shared in my last article…
No matter what you do, no matter how great you are, and how great your product or service is, you will eventually lose customers.
If all businesses deal with customer loss or churn, the question is: Why do so many businesses and companies lose customers?
6 Reasons Why Customers Leave a Business
There are many unique reasons that a business might lose a customer. But here are some common reasons…
- Your customers move out of town. They no longer live close enough to make buying from you feasible. This applies mainly to physical business that offers physical products or services that can’t easily be shipped long distance.
Think of businesses such as a restaurant or dry cleaners. If you have a business like that, it’s hard to serve your customers if they’re in a different state. Or, for example, if someone moves to another state they’re not going to use your gas station anymore. - Your customers no longer need your product or service. They are in another stage of life or they might have solved (or no longer have) the problem they originally needed your product or service for.
Do you want an example of a former customer like this? It could be a parent whose child grows up and no longer needs your daycare service. Or it could be a person who changes jobs/interests/fields and might no longer be interested in your membership site. - Your customers had a bad experience with your customer service or with your product or service. If someone has a bad experience with your product or service, they could easily decide to just stop doing business with you – without ever letting you know.
If they do happen to come to you with their complaint and don’t feel like they were taken care of properly, then they will also be gone.
According to Forbes, businesses are losing $62 billion per year through poor customer service. - Your competitor wooed them away with lower prices, better results, or better service (or all three). This is probably the one way that businesses actually worry that they will lose customers.
How common is this problem? U.S. companies lose $136.8 billion per year due to avoidable consumer switching. (CalMiner.com) - They no longer have the finances to pay for your product or service. I couldn’t find any stats for this reason. But we all probably have done this to a company at some point.
The bills grow and you decide to ditch cable. Or you decide it’s time you finally had a decent amount in savings, so you have to cut some things out. That means you decide to make coffee at home and no longer grab coffee at your favorite local coffee shop. - They felt ignored by your business or company. They felt like they didn’t matter to your business or that you took them for granted.
You might be surprised how many customers leave for this reason. 68% of customers leave you because they perceive you are indifferent to them. (SmallBusinessTrends.com)
Which of These Reasons is Causing You to Lose the Most Customers?
I would encourage you to go over this list and begin to examine and investigate which of these reasons is causing you to lose the most customers.
Because you can’t actually do anything to solve a problem unless you’re aware of what it is.
In my upcoming articles, I will reveal some ways that you can reengage your former customers to try to win them back.
In fact, I think you’re going to be surprised at one of the sources I use to help you to do this. Stay tuned.
Get Emailed Whenever a New Article Goes Live
Did you enjoy this article? Then don’t miss when the next one goes live.
Sign-up below and you will be emailed whenever a new article is posted.
(That means that you will usually be emailed multiple times a week.)
