Retail Observer

RETAILOBSERVER.COM FEBRUARY 2020 64 W e all know our top competitors and constantly evaluate their strengths and weaknesses. We discuss why we might have lost some business to a competitor and what the company can do to prevent this in the future. Was it price, or product quality, or warranty, or performance and then what can be done to make sure that we never lose a deal for that reason in the future? We all chase new business constantly, but do we ever consider that our own company can possibly cause us to lose business just like a competitor? Existing customers are the backbone of any company and should represent one market area that is protected and constantly monitored to ensure that we continue to meet and exceed their expectations. Some would say we should be overprotective of our existing customer base and I would say that is very wise counsel. It costs quite a bit to get a new customer and then even more to keep them happy over a long period of time. The disgruntled existing customer can also become a source of strong negative word of mouth advertising to others in the future because they claim to be the voice of experience. When an existing customer goes elsewhere it may be because we unknowingly just became our own biggest competitor. When this happens, we must really examine the reason why the existing customer went elsewhere, and fix that problem fast. We can analyze losing business to a lower cost alternative or to a product with more features, and that can happen, but what really made the customer switch after many years of being one of your valued customers? Do you know the real reason, and will that possibly have the same negative impact on other customers? These are the situations that really require some dedicated detective work to find out the true reason, so that you can take some immediate action. Losing an existing customer is one situation that requires top management attention and action. It can be caused by a new billing system, a personal conflict, a product issue, poor product quality, or one bad unresolved service problem. Customers might not tell us the real reason, but we should all try to find out the cause and fix it immediately. Customers stay with our companies for specific reasons or perceived benefits, and if those change in any way, we can unintentionally generate negatives for a customer that can eventually lead to a decision to try another company. Changes that a company makes can many times be the reason for lost business. When changes are made, be proactive with your existing customer base to get feedback on a new process, product, or employees before, during, and after the change. You might find them to be a great marketing source that will give you honest feedback when you take the time to ask. Don't assume change is always met with universal acceptance. Be nosy and find out for yourself to avoid any unfortunate surprises. Also know what your business strengths are at all times and be very careful to avoid any programs that might negatively impact them. Like all of us, customers are creatures of habit who often don't care for change, so assume this important fact when you have product, process, or personnel changes. The existing customers are your company's backbone, so make sure you know who they are and why they continue to choose to do business with your company and base your operational decisions on knowing their likes and dislikes. Avoid actions that might upset this balance. If not, you might mistakenly become one of your own biggest competitors. WHO COULD BECOME YOUR BIGGEST COMPETITOR? S E R V I C E D E P A R T M E N T Don Pierson - CSC Past President RO

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