NFIB

Winning Back Lost Customers
04/ 11/ 2002


Many companies go through a reorganization of some kind, and in the process emerge with a stronger emphasis on customer service. That's the time to begin to win back any customers that may have been lost in the past, either because of poor service or product unavailability. In today's Workshop, contributor Jeff Moses shares some tips about how to win back lost customers.

It's well known that a single dissatisfied customer usually tells from 5-15 other people about their dissatisfaction. And some of these speak to others. That means that losing even one customer can result in negative word-of-mouth involving up to a hundred or more people. Losing many customers because of dissatisfaction can result in thousands of potential customers getting a negative earful about your business. Clearly, few companies can afford this.

Many companies have determined the cost of getting a new customer. When taking into account the cost of advertising and marketing promotions, it may take anywhere from $100 to $200 or more for every new customer -- and it may take even more to win back a lost customer. But what does it cost to keep a customer by offering good service? Usually only a fraction of this cost. For this reason, it's imperative that you make sure that your staff understands how important outstanding customer service is.

To win back lost customers, consider writing a letter directly to customers who have not been in for some time. Apologize to them for any past lapses in service, and tell them that you've reorganized. In particular, you might mention that you're now placing an emphasis on 1) listening to customers; 2) supplying service and products on a personal basis to customers; 3) solving the unique needs of customers. Make the tone of the letter positive. Don't dwell on past mistakes or shortcomings. Instead, tell people that you've improved and are there to offer them the best service available.

You might want to take out a display ad in local newspapers, saying much the same thing as described in the previous point. The headline of the ad could be: "An Invitation to Citizens of (your town or city)" The gist of the ad would be to invite people back to your business to see for themselves how you've improved.

If you're aware of specific instances in which customers received poor service, pick up the phone and call them personally. Apologize and invite them in to try you again. People are often forgiving, and may even be a bit intrigued to see how you've changed. When you call, be prepared to listen to complaints. Be patient. A phone call is an inexpensive way to win back a lost customer.

workshop.marketing.mon
10.25.99

Small Business Sound Off
Does this story hit home?  Share your story with us