WHY BUSINESSES LOSE CUSTOMERS
After a 40-year career as an automobile dealer, Martin Bury wrote of his experiences in the book The Automobile Dealer (Damascus Publishing, Gresham, OR).
Analyzing lost customers, Bury arrived at some statistics that could open the eyes of a marketer from any industry, including insurance:
Over a four-year time period, here are the reasons businesses lose their customers:
- 1% will die.
- 3% will move out of the area.
- 5% will be lured away by other salespeople.
- 9% will be lured away by lower prices.
- 14% leave because of unresolved complaints.
- 68% leave because of poor service, discourteous treatment, or indifference.
The moral to these statistics: Concentrate on providing courteous, helpful service, and you can cut your client losses by more than two-thirds!