It's the Customer, Stupid!: 34 Wake-up Calls to Help You Stay Client-Focused

Chapter 6. Somebody Has to Take Out the Trash!

Up to 90 percent of unhappy clients will not buy from you again, and they won't bother to tell you why.

Client Retention Should Be the Model, Not the Exception

Customer retention is not only a cost-effective and highly profitable strategy; in today's very competitive climate, it is absolutely necessary if you are in business for the long haul. This is critical, given the fact that 80 percent of business comes from 20 percent of your client base.

Still, most marketing and advertising campaigns are so highly focused on attracting new customers that they practically ignore the loyal clients who have been there for years. One of the best examples I can think of comes from the world of the highly competitive wireless telephone industry.

Most companies here have the audacity to offer a huge rebate or free cellular phone to a new customer, while giving current clients the privilege of paying full price. All this does is force loyal clients go elsewhere, which is exactly the opposite of what it is trying to accomplish.

Sadly, one of the most telling statistics of all in the client relations arena is this one: 90 percent of unhappy clients abandon you and they don't even bother to tell you why. They simply fire you as their vendor or provider. Period. No questions asked. No apologies rendered. None expected.

I would far rather have an angry client than one that has no agenda whatsoever. I would rather hear 10 objections to my proposal than one indifferent ...