Bad service from the supplier, poor quality of the products, and an out-of-market price are they? The main reasons why customers leave a company and seek other options within the sector. The great assets of SMEs: permanent contact with the public and professional advice.
“At the moment our operators are busy; please wait, we will attend to you shortly.” This is one of the common phrases that users hear every time they call customer service. Minutes wasted on the phone trying to solve, for example, an error in the bill, which is also not your responsibility, are one of the reasons why, in the end and desperate, you end up requesting to speak to the discharge department.
To avoid customer churn, companies have to put aside sterile excuses and do a self-assessment exercise to detect the reasons why consumers are going to other companies.
Here are some mistakes that you should avoid and make money online.
1. – Disappointing expectations: People tend to forge perspectives that, if not met, cause discomfort and disappointment. The same is true in the business world. Promising more than you can give is a serious mistake. If the internal infrastructure is only capable of having an order ready in a week, it is a bad idea to offer delivery in 48 hours.
2. – Problems with? The sales team: poorly educated clerks, technical service without sufficient knowledge or call centers that repeat standard phrases without listening to the complaints of the person on the other end of the phone are some professional profiles that any manager should hire, but only if you are looking to close your business in a short time. Such staff are the contact with customers and others who keep them inside an organization on certain occasions or not.
3. – Out-of-market price: Although it is true that, on occasions, it is impossible to lower the price further, in others, it is because the company has not reviewed its policy or studied how it can reduce previous costs, which allow it to be adjusted. In order to remain competitive, it is not always necessary to cut prices, since they have to continue to cover expenses and give a profit margin, but to adjust them with the quality or offer an extra that justifies it. IPhones cost from 700 dollars and, despite this and the fact that there are much cheaper models on the market, they fly from stores; Apple has managed to surround its brand of exclusivity.
4. – Not knowing one’s own limitations: Accepting orders that cannot be served either in number or in time is one of the worst business cards. Therefore, not knowing the current stock, the company’s productive capacity, and the lack of resources to outsource certain processes or hire extra staff at specific times are some of the keys to failure. Also, delivery times must be realistic. An online store that offers to have the order at the customer’s home in less than 24 hours, without being willing to bear the cost of an express courier service or without charging the buyer, will only get the buyer angry and open the door to find another option: next time you want to place an order.
5. – Do not study the competition: Believing yourself to be the best in the market and not seeing what your competitors are doing does not help you grow. Even world leaders are always very aware of what is moving around them, not with the intention of copying it, but of overcoming it.
You also have to be attentive to the movements of the competition to know if it grows or not. SMEs in sectors with low entry barriers (large capital is not required, machinery or very specific training is not necessary, there is no need to obtain special permits …) have to be even more aware of the presence of other similar businesses. For example, a restaurant may offer good service in the kitchen and dining room and a menu with a great value for money, but if they start to open similar businesses in the same neighborhood, they will have trouble retaining their clients, if they do not change or reinforce your strategy.
The user must be surprised by updating the product and providing it with added value.
6. – Do not readapt? The product: Today’s world is changing rapidly and, therefore, it is necessary to review and update the characteristics and functionalities of the products. This is not only valid for SMEs in industrial or technological sectors, since all areas are evolving, albeit at a somewhat slower pace.
7. – Bad management of the corporate image: If a company is involved in a conflict, either because of its own fault or that of others, the image of the brand will probably be damaged. Poor management of times of crisis can ruin a business. Hiding information or giving fuzzy or non-verified data, for example, about the origin or quality of the raw material with which the genre is produced can make a rumor grow, and it is impossible to stop it. Three years ago, many small farmers were in trouble by the so-called cucumber crisis; Those who put together a good information campaign found it easier to keep their most fearful customers.
8. – Theft of clients? By former employees: Sometimes a former worker sets up his own company and, thanks to the good relations he had with some of his previous clients, he gets in touch with them and manages to convince them to join your new project. This theft is much easier if confidentiality or non-competition agreements have not been previously signed (not working in a similar business within the same geographical area for a period of time), which deter the former employee from this type of strategies to set up your company.
9. – Constant changes in personnel: Many people, especially in the field of services, need to establish a certain connection in order to maintain a business relationship. However, if the template is renewed on a regular basis, it will be difficult to establish this confidence level repeatedly.
10. – Uncontrollable causes: Although they do not depend directly on the good or bad actions of the SME, other reasons cause the audience to lose, and that should be taken into account to adjust their strategies. The change of address or death is some of the most common reasons and that force the employer to constantly seek the renewal of his portfolio.